January 31, 2026 a 02:46 am
SYY: Dividend Analysis - Sysco Corporation
Sysco Corporation, a leader in the food distribution sector, offers investors a stable dividend profile with a current dividend yield of 2.93%. The company's long-standing commitment to consistent payouts over 40 years reveals its stability and reliability. While the dividend growth rate is moderate, it signifies continuous shareholder value enhancement. As an investment, Sysco presents a balanced approach between dividend income and growth potential.
📊 Overview
Sysco Corporation's dividend profile reflects its robust performance within the Food Distribution sector.
| Metric | Details |
|---|---|
| Sector | Food Distribution |
| Dividend yield | 2.93% |
| Current dividend per share | 2.05 USD |
| Dividend history | 40 years |
| Last cut or suspension | None |
🗣️ Dividend History
The significance of Sysco's dividend history lies in its 40 years of uninterrupted payouts, reflecting resilience and reliability, which are crucial for long-term investors seeking consistent income.
| Year | Dividend per Share (USD) |
|---|---|
| 2026 | 0.54 |
| 2025 | 2.10 |
| 2024 | 2.02 |
| 2023 | 1.98 |
| 2022 | 1.92 |
📈 Dividend Growth
The dividend growth in recent years, while modest, indicates Sysco's commitment to returning value to shareholders. Monitoring these trends is essential in assessing future payout potential.
| Time | Growth |
|---|---|
| 3 years | 3.03% |
| 5 years | 3.13% |
The average dividend growth is 3.13% over 5 years, suggesting moderate but consistent growth, which aligns with investor expectations for stable income, even in fluctuating markets.
⚠️ Payout Ratio
The payout ratio, an essential metric, assesses a company's ability to sustain dividend payments. Lower ratios indicate more room for future growth, while higher ratios could suggest potential constraints.
| Key figure | Ratio |
|---|---|
| EPS-based | 54.65% |
| Free cash flow-based | 50.91% |
Sysco's EPS payout ratio at 54.65% and FCF payout at 50.91% showcase financial stability, allowing flexibility for reinvestment and growth.
💡 Cashflow & Capital Efficiency
Sysco's cash flow health is pivotal for sustaining dividends while supporting operational and strategic initiatives. The analysis reflects efficient capital management which ensures steady growth.
| Metric | 2025 | 2024 | 2023 |
|---|---|---|---|
| Free Cash Flow Yield | 4.86% | 6.03% | 5.51% |
| Earnings Yield | 4.99% | 5.46% | 4.70% |
| CAPEX to Operating Cash Flow | 33.72% | 27.84% | 27.65% |
| Stock-based Compensation to Revenue | 0.11% | 0.13% | 0.13% |
| Free Cash Flow / Operating Cash Flow Ratio | 66.28% | 72.16% | 72.35% |
The positive cash flow and capital dynamics ensure Sysco's ability to sustain and grow dividends, contributing positively to shareholder wealth creation.
🧾 Balance Sheet & Leverage Analysis
Sysco's capital structure is a crucial indicator of financial health. It is imperative to ensure that the company maintains a manageable debt level to mitigate risks.
| Metric | 2025 | 2024 | 2023 |
|---|---|---|---|
| Debt-to-Equity | 7.92 | 6.96 | 5.56 |
| Debt-to-Assets | 0.54 | 0.52 | 0.49 |
| Debt-to-Capital | 0.89 | 0.87 | 0.85 |
| Net Debt to EBITDA | 3.25 | 2.94 | 2.82 |
| Current Ratio | 1.21 | 1.20 | 1.24 |
| Quick Ratio | 0.70 | 0.69 | 0.72 |
| Financial Leverage | 14.63 | 13.40 | 11.36 |
These figures suggest that Sysco maintains healthy leverage metrics that do not overly compromise its financial stability.
📉 Fundamental Strength & Profitability
Sysco's profitability metrics provide insights into its intrinsic value. Tracking these is critical for assessing overall business efficiency and future growth potential.
| Metric | 2025 | 2024 | 2023 |
|---|---|---|---|
| Return on Equity | 99.89% | 105.11% | 88.10% |
| Return on Assets | 6.83% | 7.85% | 7.76% |
| ROIC | 13.03% | 15.00% | 16.30% |
| Net Margin | 2.25% | 2.48% | 2.32% |
| EBIT Margin | 3.75% | 4.02% | 3.68% |
| EBITDA Margin | 5.08% | 5.29% | 4.85% |
| Gross Margin | 18.40% | 18.53% | 18.28% |
| R&D / Revenue | 0% | 0% | 0% |
The company evidences robust returns with impressive profitability indicators, upholding its competitive edge.
📈 Price Development
✅ Dividend Scoring System
| Criteria | Score | Score Bar |
|---|---|---|
| Dividend yield | 3 | |
| Dividend Stability | 4 | |
| Dividend Growth | 3 | |
| Payout Ratio | 3 | |
| Financial stability | 3 | |
| Dividend continuity | 5 | |
| Cashflow Coverage | 4 | |
| Balance Sheet Quality | 3 |
Total Score: 28/40
Rating
The Sysco Corporation presents itself as a solid option for dividend-focused investors, with a reassuringly stable dividend track record and sound financial management. While growth rates in dividends and profitability are moderate, the company's stability and market position offer a reliable investment with long-term potential.
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