Markets· August 16, 2026 at 05:01 p.m.
Sysco's Dividend King Status and Growth Potential Make It an Attractive Buy in August
Key takeaways
- Sysco has increased its annual dividend for 58 consecutive years
- The stock's current yield is 2.6%
- Sysco's sales grew by 4.7% in the latest quarter
Investors seeking defensive stocks with high dividend yields may find Sysco (NYSE: SYY) appealing, as the food distributor has increased its annual payouts for 58 consecutive years and is expected to continue growing its dividend. The stock's current yield of 2.6% stands out in a market where the S&P 500 yield is barely above 1%.
Sysco's sales grew by 4.7% in its latest quarter, and management noted that increased investments in selling programs are paying off at the local level. This growth is particularly noteworthy given the challenging environment for restaurant operators.
Despite Sysco's strong performance, it has been relatively overlooked by Wall Street, with only 15 analysts covering the stock. However, its acquisition of Jetro Restaurant Depot could add $16 billion in annual sales and help bring down leverage ratios over time.
Sysco is estimated to return as much as $23 billion to shareholders through dividends and stock buybacks over the next decade, making it an attractive long-term investment. However, it's worth noting that The Motley Fool Stock Advisor analyst team did not include Sysco in their list of top 10 stocks for investors to buy now.
