Sysco Keeps Dividend, Eyes Modest Growth Amid AI-Fueled Sales Increase

Sysco (SYY) maintains a quarterly dividend of $0.54 per share with a 2.67% yield. Despite a cautious profit outlook, the company expects 3%-5% sales growth in 2026 driven by AI and pricing strategies. Analysts predict a potential upside of over 6% from current price levels, with an average target price of $85.97.

Sysco Corporation (NYSE: SYY) has declared a regular quarterly cash dividend of $0.54 per share, payable on October 24, 2025, to common stockholders of record at the close of business on October 3, 2025 [1]. This dividend, which represents a 2.67% yield, is part of the company's 55-year consecutive dividend streak.

Despite the dividend announcement, Sysco has been facing mixed signals from its latest earnings and executive transactions. On August 15, 2025, Sysco's trading volume surged 67% to $310 million, ranking it 335th in market activity [2]. The stock closed down 2.07% amid these developments.

Executive Vice President and CHRO Ronald L. Phillips sold $509,166 in shares on August 13, 2025, as part of a pre-arranged Rule 10b5-1 trading plan [2]. The sale followed the exercise of 6,286 stock options, and Phillips now holds 34,404 shares directly.

Sysco's recent fiscal fourth-quarter results showed stronger-than-expected sales and adjusted EBITDA, but the company issued weaker-than-anticipated 2026 guidance [2]. Analysts responded with varied price targets, with Truist raising its target to $90 and UBS cutting its estimate slightly to $90 due to guidance concerns [2]. Despite these mixed signals, analysts note the company's "GOOD" financial health rating and 38 billion market capitalization.

For 2026, Sysco expects 3%-5% sales growth driven by AI and pricing strategies. Analysts predict a potential upside of over 6% from current price levels, with an average target price of $85.97 [2]. The company's strong operational performance and consistent dividend streak continue to attract investors, despite the cautious profit outlook.

References:
[1] https://www.nasdaq.com/press-release/sysco-declares-quarterly-dividend-payment-2025-08-20
[2] https://www.ainvest.com/news/sysco-310m-trading-volume-surges-67-rank-335th-shares-drop-2-07-executive-sales-mixed-earnings-outlook-2508/