Sysco Corporation (NYSE:SYY)

CAPS Rating: 4 out of 5

The Company through its subsidiaries and divisions distributes food and related products to restaurants, healthcare and educational facilities, lodging establishments and other foodservice customers.

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Player Avatar DonkeyJunk (32.38) Submitted: 3/29/2011 2:47:36 PM : Outperform Start Price: $24.63 SYY Score: -1.08

Watering at the mouth as this stock continues to be punished for its temporary efforts to squeeze out competitors by not raising prices to account for the inflation in the products it offers. Do I expect this stock to outperform the market over the next year? Not if the market continues to rise. Do I expect to make crazy amounts of money off of a nearly 4% dividend and a stock that is basically coiled and ready to spring? Well, not crazy money, but a strong, steady, reliable flow, yes.

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Member Avatar ClassicFoolToo (< 20) Submitted: 12/16/2011 4:01:59 PM
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If they are not raising prices in line with the rising costs (inflation) in the products they offer ... this puts a strain on margins and ultimately profits and more ultimately their ability to continue paying the 4% dividend. Seems to me the dividend will eventually be in jeoparty!

Member Avatar DonkeyJunk (32.38) Submitted: 1/3/2012 5:17:15 PM
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According to Dividendinvestor.com, their current payout ratio is 53%, so that seems pretty safe. Add to that, Sysco has already raised their prices. This stock probably isn't going anywhere for a while, but neither is that dividend.

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