Meet the High-Yield Dividend King Wall Street Is Sleeping on. Here's Why It's a Buy in August.
Sysco, a Dividend King, is a buy this month due to its high-yield dividend and solid showings. The company's dividend increase is at 58 years, and its dividend yield is 2.6%. Sysco's sales jumped 4.7% in its fiscal fourth-quarter results, and management noted that increas…
Intelligence analysis by Llama
Sysco, a Dividend King, is a buy this month due to its high-yield dividend and solid showings. The company's dividend increase is at 58 years, and its dividend yield is 2.6%. Sysco's sales jumped 4.7% in its fiscal fourth-quarter results, and management noted that increased investments in selling programs are paying off at the local level.
Imagine you have a friend who always gives you a little bit of money every month. That's kind of like what Sysco does, but instead of giving money, they give their investors a share of their profits. And Sysco has been doing this for a really long time, which is a good thing because it means they're stable and reliable. Plus, they're making more money than ever before, which is great for their investors.
Analysis
Sysco, a Dividend King, is a buy this month due to its high-yield dividend and solid showings. The company's dividend increase is at 58 years, and its dividend yield is 2.6%. Sysco's sales jumped 4.7% in its fiscal fourth-quarter results, and management noted that increased investments in selling programs are paying off at the local level. This is a key reason why investors should consider Sysco in the near term. The company's ability to continue growing its payout, perhaps by as much as 6% annually, makes it an above-average inflation fighter. With inflation elevated today, Sysco's inflation-fighting chops make this long-term stock all the more appealing over the near term. For investors approaching this stock with a long-term perspective, as they should, it's estimated that Sysco could return as much as $23 billion to shareholders through dividends and stock buybacks over the next decade, assuming it doesn't pursue another large acquisition. This is a compelling reason to consider Sysco as a long-term investment opportunity.
Key points
- Sysco is a Dividend King with a 58-year dividend increase streak.
- The company's dividend yield is 2.6%.
- Sysco's sales jumped 4.7% in its fiscal fourth-quarter results.
- Management noted that increased investments in selling programs are paying off at the local level.
- Sysco has the capacity to continue growing its payout, perhaps by as much as 6% annually.
If Sysco continues to grow its dividend payout at a rate of 6% annually, it could return as much as $23 billion to shareholders through dividends and stock buybacks over the next decade. This would make Sysco an above-average inflation fighter and a compelling long-term investment opportunity.
If Sysco's sales growth slows down or the company is unable to continue growing its dividend payout, it could negatively impact the stock price and make it a less attractive investment opportunity.
