This indicates the dividend is sufficiently covered, but would likely take a recovery from the pandemic to grow meaningfully. The most undervalued Dividend King from the perspective of earnings multiple is 3M Company (MMM). If you thought that becoming a Dividend Aristocrat was difficult, wait until you hear what it takes to be a Dividend King. The company had a dividend payout ratio of 90% in fiscal 2021. Revenue declined by 43% year-over-year, gross profit decreased 6.9%, and adjusted earnings per share swung from $1.10 in the previous year to a loss of $0.29. Because Sysco is an overvalued stock, we do not anticipate multiple expansion being a meaningful driver of future shareholder returns. Yes, I said 50 years. Amazon is a great example of a growth company that does not pay a dividend. Sysco also faces the risk of its customers negotiating directly with its suppliers. The company is also adding delivery to grocery stores in an effort to create new sources of revenue. A dividend is a payment or distribution from a company’s earnings. I like. Sysco stock has had a difficult 2020, mostly due to the impact of the COVID-19 pandemic on restaurants and bars. SYY. This leads to total expected annualized returns of 3.4% per year over the next five years. The company was founded in Houston, Texas in 1969 and now serves 600,000 locations with food delivery, including restaurants, hospitals, schools, hotels, and other facilities. Une entreprise peut même cumuler les titres de noblesse en étant à la fois aristocrate et dividend king si elle a augmenté ses dividendes 50 ans de suite. By. Restaurant traffic slowed down, driven by several factors including eroding mall traffic, and low grocery prices. This year, there are several new entrants into this exclusive Dividend Kings, including food distributor Sysco Corporation (SYY). The last dividend was in November 2019, when Sysco hiked quarterly dividends by … Unlike the S&P 500 Dividend Aristocrats, this list of companies is not officially tracked by a ratings companies. Sysco Corporation (NYSE:SYY) is about to trade ex-dividend in the next 4 days. The company has grown steadily over the nearly five decades since. The company’s dividend is also very safe. In 2016, Sysco acquired U.K.-based Brakes Group for $3.1 billion. Tootsie Roll: Slow And Steady Has Its Virtues . Social distancing restrictions in response to COVID-19 severely limited away-from-home dining options for consumers, Source: 2020 Barclays Global Consumer Staple Conference Presentation. It's the best, because home-improvement retailer Lowe's (NYSE: LOW) is a strong business you'd want to own even if it didn't pay a dividend. 13 Real Estate Investing Basic Tips For 2020, Before The Bell: S&P 500 Up & Bitcoin Recovers, Stock Market Today: Treasury Auctions Poor, While Jobless Claims Drop, Equity Real Estate Investment Trusts (REITs). Dividend King is a stock with 50 years or more of consecutive dividend increases. Typically it is associated with a class of shares. Each of these companies have increased their dividend annually sine 1970! It serves fresh, refrigerated, and frozen foods to over 50,000 customers, and has a leading presence in the U.K., France, Sweden, Ireland, Belgium, Spain, and Luxembourg. We believe future returns will be satisfactory, but not spectacular, for investors buying the stock at the current valuation level. The best ticker award has to go to ProShares and their S&P500 Dividend Aristocrats ETF – NOBL. wdt_ID Ticker Company Sector Industry; S&P 500 . It's the best, because home-improvement retailer Lowe's (NYSE: LOW) is a strong business you'd want to own even if it didn't pay a dividend. To be considered a dividend King, there is one requirement. Everyone has to eat, which gives Sysco a certain level of demand, regardless of the condition of the U.S. economy. 1.25%: $0.65: 21.96%: 15.45%: 13: 23.58: CSV / Excel Export To export this table to CSV or Excel, upgrade to MarketBeat All Access. Dividend Kings are companies that have increased their dividend for 50+ consecutive years. Shares have declined almost 23% year-to-date. Brakes is one of the largest foodservice companies in Europe. Fuller. This is why Sysco’s profits held up well during the Great Recession: Sysco grew earnings-per-share at a double-digit pace in 2008 and 2010, with only a mild dip in 2009. The Dividend Kings list can be a good source for selecting dividend stocks. Sysco’s actions in assisting customers helps cement relationships while providing a lifeline for restaurants to remain in business. Shareholders are usually eligible for dividends as long as they own the stock. If it weren’t for the COVID-19 disruptions to the business, we believe that the company’s true “earnings power” would be $3.50. Dividend Kings are an elite subset of dividend paying stocks. The company reported that customers taking advantage of this assistance performed better than those that did not. While the USA does not have royalty like the UK does, they do however have dividend kings. Consumer spending on food away-from-home severely declined from the end of February, but appeared to bottom in April. In this article, I examine Sysco Corporation (SYY), whose Dividend King status may not be safe due to the impact of the coronavirus. Their status as dividend growth stocks is largely proven. Though it is facing headwinds at the moment, we believe that these will mitigate as a recovery from COVID-19 eventually takes place. Its most recent increase was a 15.4% raise in November 2019. They rise above a majority of dividend stocks that in the history of paying dividends. During the past decade, SYSCO Corporation has managed to … Read More . The king said the pandemic offered an opportunity to build the resilience needed to confront other global crises, including climate change and food insecurity.The number of people at risk of hunger is expected to almost double to 265 million this year, in part due to the economic impact of steps to contain the virus, the king said. This year, there are several new entrants into this exclusive Dividend Kings, including food distributor Sysco Corporation (SYY). The Dividend Kings are a group of 30 companies in the S&P 500 Index, with 50+ consecutive years of dividend increases. 2020 Barclays Global Consumer Staple Conference Presentation, 2008 earnings-per-share of $1.81 (13% increase), 2009 earnings-per-share of $1.77 (2% decline), 2010 earnings-per-share of $1.99 (12% increase). We expect Sysco to deliver 5.2% annual earnings growth going forward, consisting of organic growth, acquisitions, and share repurchases. Sysco pays an annual dividend of $1.80 per share, with a dividend yield of 2.42%. A Dividend King The company is a dividend king with a 50-year history of annual dividend increases. Seeking Alpha - Sysco Corporation (SYY) is without a doubt a great company. However, there are some signs of a return to life for Sysco’s customers, as the economy (and the restaurant industry in particular) begins to recover. You can see a full downloadable spreadsheet of all 30 Dividend Kings, along with several important financial metrics such as price-to-earnings ratios and dividend yields, by clicking on the link below: Click here to download my Dividend Kings Excel Spreadsheet now. Dividend articles featuring Sysco (SYY): 2020-11-20 The Retiree's Dividend Portfolio - Jane's October Update: Time To Take Some Gains 2020-11-16 Minimal Dividend Growth Expected From Sysco And Becton Dickinson In Second Half Of November 2020-11-06 6 Dividend Increases Expected In November 2020 2020-11-04 65 40-Year Plus Annual Dividend Boosters In November The Dividend Kings list can be a good source for selecting dividend stocks. A dividend king is a company that has managed to increase dividends to shareholders for at least 50 years in a row. Here's what you need to know about current Dividend Kings and … Pepsi is a Dividend Aristocrat for sure. Its most recent increase was a 15.4% raise in November 2019. The company pays in January, March, June, and September. In addition to the long track record of increasing its dividend, a dividend king must have a market cap of at least $3 billion. Its position atop the food distribution industry provides Sysco with high profit margins, and future growth potential. To be considered a dividend King, there is one requirement. Jul 12, 2020 2:29 PM EDT And the company has enjoyed a resurgence in recent years, driven by a strong U.S. economy and high consumer confidence. Next Ex-Dividend date is expected on 01/07/2021 Last Price $73.22 Cboe Previous Close - Real-Time Last Sale as of 4:00PM ET 12/30/20 Cboe Real-Time Quotes. 3M’s competitive advantages are legendary. The two gas utilities in the Dividend Kings, Northwest Natural Gas (NWN) and National Fuel Gas (NFG) have yields over 4%and may represent good value at this time. The company already has 51 years of payout increases under its belt. SYSCO Corporation (NYSE:SYY) markets and distributes a range of food and related products primarily to the foodservice or food-away-from-home industry in the United States, Canada, the United Kingdom, France, and internationally. I like Dividend Kings with 50+ years of dividend increases. The stock price is down significantly from its 52-week high and simultaneously he yield is approximately 4.5%. Last fiscal year, Sysco had sales of $53 billion. But, rest assured. Because of the use of Fiscal Years, rather than Calendar Years, I excluded Parker - Hannifin from the first list of dividend kings that I compiled in 2010 . They don’t have castles, or grand palaces, or even have nice old ladies waving at everybody in shockingly bright coloured clothes. The stock is slightly overvalued, meaning right now is not the best time to buy the stock. Many of these customers have faced extreme hardship as a result of the ongoing pandemic. In late January of last year (1/28/19), Sysco announced the acquisition of Waugh Foods, Inc., a food distributor with approximately $40 million of sales. Reverting to this target valuation by 2025 would reduce annual returns by 4.5% over this period of time. Advisors and investors should not just buy all the stocks in the dividend king list. There are no other restrictions to be part of this elite list. Today, Sysco is the largest food distributor in the U.S. In addition, Sysco has a current dividend yield of 2.7%, which is a higher yield than the average yield of the broader S&P 500 Index. In other words, we view the past and assume it will continue without sufficient analysis of what could change. As a result, Sysco remains a quality holding within a dividend growth portfolio, but the stock is not a buy at the current price. Its most recent increase was a 15.4% raise in November 2019. Its most recent increase was a 15.4% raise in November 2019. No, it doesn’t. These companies not only survived all the stock market booms and crashes, but found a way to be profitable and pay a dividend. Today, the index covers about 80% of the available U.S. market capitalization and is comprised of 505 companies. Each of these companies have increased their dividend annually sine 1970! Dividend Kings are an elite subset of dividend paying stocks. Dividend King is a stock with 50 years or more of consecutive dividend increases. If you're looking to invest in Dividend King stocks, here's a word of caution. A Dividend King. Dividend investing has proven to the be an effective way for investors to compound their wealth and income over time. There are many metrics that investors can use to evaluate a company. H.B. It also provides non-food products including tableware, cookware, restaurant and kitchen supplies, and cleaning supplies. The company is a dividend king with a 50-year history of annual dividend increases. And like the other Dividend Kings on this list, SYY is a dividend-raising machine. SYY Dividend History & Description — Sysco Corp. Sysco, acting through its subsidiaries and divisions, is a distributor of food and related products to the foodservice or food-away-from-home industry. Should I be holding mostly dividend kings in my portfolio? Sysco has a long history of steady dividends, and regular dividend increases. Sysco Corp (SYY) – 50 (Updated: August 2020) A Word of Caution About the Dividend Kings. I like. The company is a dividend king with a 50-year history of annual dividend increases. This is a valid question. A Dividend King is to be respected. The Dividend King … Dividend articles featuring Sysco (SYY): 2020-11-20 The Retiree's Dividend Portfolio - Jane's October Update: Time To Take Some Gains 2020-11-16 Minimal Dividend Growth Expected From Sysco And Becton Dickinson In Second Half Of November 2020-11-06 6 Dividend Increases Expected In November 2020 2020-11-04 65 40-Year Plus Annual Dividend Boosters In November The U.S. foodservice industry is fiercely competitive. In its first year as a publicly-traded company, it had sales of just $115 million. Hormel operates in a sector that performed well during the pandemic, as people stockpiled food and supplies. Sysco has a long history of steady dividends, and regular dividend increases. ABS News & Research is dedicated to providing quality investment insight and information from experienced financial professionals and journalists. Industrial clients are reluctant to abandon such a world class company for… Does this mean they will always pay a dividend? Contact Haselkorn & Thibaut, P.A. What are Dividend Kings? After more than 20 years of investing, one of my favorite stocks are the dividend kings. It also has a large segment of other customer types such as bakeries, churches, civic and fraternal organizations, vending distributors, and international exports. April 18, 2020 November 28, 2020 Dividend Power. There are only 28 such companies in the US, and perhaps a couple more in the rest of the world. Consumers were forced to eat more meals at home, which resulted in increases in grocery store traffic. Sysco even provided connections to help customers with outdoor dining, patio extensions, website design, takeout menu productions and to-go containers. It is the largest company in its industry, which provides it with higher profit margins and durable competitive advantages over its smaller rivals. The Dividend Kings are the best in class with respect to dividend endurance. L’indice des dividendes aristocrates doit toujours comprendre au moins 40 titres. The company already has 51 years of payout increases under its belt. To be considered a dividend King, there is one requirement. SYY Dividend Chart. The company was founded in Houston, Texas in 1969 and now serves 600,000 locations with food delivery, including restaurants, hospitals, schools, hotels, and other facilities. There are thousands of competitors to Sysco, which include other food distributors, as well as wholesale or retail outlets, grocery stores, and online retailers. SYY Dividend History & Description — Sysco Corp. Sysco, acting through its subsidiaries and divisions, is a distributor of food and related products to the foodservice or food-away-from-home industry. Such a huge presence allows Sysco to keep costs low, and it can pass on the benefit to its customers. Dividend kings are companies who have increased their dividend payout for at least 50 consecutive years. Continued acquisitions such as this help Sysco generate growth in a fairly saturated–and highly competitive–food distribution industry. So what are the dividend kings stocks? Sysco reported its fourth quarter (fiscal 2020) earnings results on August 11th, 2020. As a result, weekly sales greatly improved over time. Get free options prices and option chains for Sysco Corp (SYY) at Ally Invest. Dividend Champions Dividend Kings Seeking Alpha. The Dividend Kings list can be a good source for selecting dividend stocks. Another benefit of Sysco’s business model is that it is resistant to recessions. Our kings list includes or DSO dividend rating which is calculated using weighted scores for yield, dividend growth, revenue growth, payout ratio, yield value and one year return. 2.42%: $1.80: 89.55%: 25.81%: 40: 195.43: FUL. I've saved the best Dividend King for last. To become a Dividend King, a company must boost its dividend for at least 50 years in a row. It controls about 16% of the $280 billion U.S. foodservice industry. This year, there are several new entrants into this exclusive Dividend Kings, including food distributor Sysco Corporation . And another soon to be Dividend King, in my opinion. In this article, I examine Sysco Corporation (SYY), whose Dividend King status may not be safe due to the impact of the coronavirus. Conclusion: SYY did not earn any Stars in the Fair Value section, earned two Stars in the Dividend Analytical Data section and earned one Star in the Dividend Income vs. MMA section for a total of three Stars. Thanks for reading this article. Dividend King #1: Sysco Corporation (SYY) Sysco Corporation is the largest wholesale food distributor in the United States, and is expanding internationally. There are only 30 such companies in the US, and perhaps a couple more in the rest of the world. And their s & P 500 is a fairly saturated–and highly competitive–food distribution industry provides with! 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