Dividend Aristocrat Overview: Sysco Corporation

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About Sysco Corporation

Sysco Corporation is the global leader in the distribution of food and food related products to customers around the world. These customers include restaurants, hotels and motels, schools and colleges, industrial caterers, and healthcare facilities that prepare meals away from home. Sysco’s business is divided into two primary operating segments: Broadline operating companies, which represents about 80% of sales, distributes food and food related products to Sysco’s customers, and SYGMA operating companies, representing about 5% of sales, focuses on supplying chain restaurant locations. The remaining 5% of sales comes from other smaller segments, including specialty produce companies and lodging industry products companies. The specialty produce segment distribute fresh produce and the lodging industry products segment provides personal care guest amenities, housekeeping supplies and other hotel and motel supplies to the lodging industry. In total, Sysco’s 48,000 employees supply over 400,000 products to the company’s 425,000 customers.

The company is a member of the S&P 500 index and trades under the ticker symbol SYY.

Sysco Corporation’s Dividend and Stock Split History

Sysco Corporation has paid dividends since coming public in 1970 and has increased dividends at least annually since 1977.  In 2001 Sysco met the Dividend Aristocrat criteria of 25 consecutive years of increasing regular dividend payments.  Sysco generally announces dividend increases in November, with the stock going ex-dividend in December.

Sysco has compounded its payout at an average rate of 4.1% over the last 5 years and 6.0% over the last 10 years.

Sysco has split its stock nine times since coming public in 1970. In February 1973, Sysco stock split 5-for-4, followed by 3-for-2 splits in June 1979 and December 1980. Since then, Sysco stock has split 2-for-1 six more times: in May 1982, March 1986, October 1989, June 1992, March 1998, and December 2000.

Direct Purchase and Dividend Reinvestment Plans

Sysco has both direct purchase and dividend reinvestment plans.  Investors interested in participating in either of these plans can find information at Sysco’s trustee agent, American Stock Transfer & Trust Company.  If you are interested, you must invest a minimum of $100 per cash or direct debit purchase.

There are no fees on any dividend reinvestments.  For direct purchases, there is a service fee of $2.50 plus 5 cents per share.  If you sell your shares in the plan, you’ll pay $10 plus 5 cents per share.  You can minimize your fees by buying and selling shares in larger quantities.

Helpful Links

Sysco Corporation’s Investor Relations Website

Current quote and financial summary for Sysco Corporation (finviz.com)

Information on the direct purchase and dividend reinvestment plans for SYY

 

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