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HOUSTON - Sysco Corporation (NYSE:SYY), a global leader in food distribution, has announced an increase in its quarterly cash dividend, elevating it to $0.54 per share, up from the previous $0.51. This 6% hike will be applied to dividends payable on July 25, 2025, to shareholders of record as of July 3, 2025. According to InvestingPro data, Sysco has maintained dividend payments for 55 consecutive years and raised them for the past 9 years, demonstrating remarkable consistency in shareholder returns.
The dividend increase is part of Sysco’s strategy to maintain a dividend payout ratio of 40% to 50% of adjusted earnings per share (EPS) and underscores the company’s commitment to providing long-term shareholder value. With a current dividend yield of 2.8% and a healthy financial profile as indicated by InvestingPro’s "GOOD" overall health score, Sysco continues to demonstrate strong financial management. Sysco’s executive vice president and chief financial officer, Kenny Cheung, emphasized that the company aims to sustain dividend growth in alignment with its adjusted EPS growth.
Sysco, known for its extensive food distribution network, serves a variety of customers who prepare meals outside their homes, including restaurants and educational facilities. The company operates 340 distribution centers across 10 countries and employs roughly 76,000 people. Recent data shows the company generated revenue of $80.57 billion in the last twelve months, with a gross profit margin of 18.43%. In the fiscal year that ended on June 29, 2024, Sysco reported sales exceeding $78 billion.
The company prides itself on being a trusted business partner to its customers, offering tailored supply chain solutions, specialty products, and culinary support to help clients innovate and optimize their operations. Sysco’s commitment to growth and sustainability is reflected in its diverse portfolio, which includes fresh produce, premium proteins, and sustainably focused items.
This dividend increase is expected to reinforce Sysco’s position as a Dividend Aristocrat, a company known for consistently raising its dividend year over year. The news is based on a press release statement from Sysco Corporation.
In other recent news, Sysco Corporation reported its fourth-quarter financial results for 2024, revealing an earnings per share (EPS) of $0.93, which slightly exceeded the consensus estimate of $0.92. The company also reported a 4.5% year-over-year increase in revenue, reaching $20 billion. Despite these positive financial results, Sysco’s stock experienced a decline, which may reflect broader market concerns or company-specific challenges. Additionally, Sysco has issued $1.24 billion in senior notes, consisting of $700 million of 5.100% Senior Notes due 2030 and $550 million of 5.400% Senior Notes due 2035, with the proceeds aimed at general corporate purposes. The company maintains its full-year net sales growth guidance of 4-5% and anticipates adjusted EPS growth of 6-7%. Sysco’s strategic initiatives, such as expanding its brand portfolio and improving supply chain efficiency, have bolstered its performance. Analysts from various firms have noted these developments, providing insights into Sysco’s ongoing operational improvements.
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