Investing in Dividend Aristocrat stocks is a strategy favored by investors seeking consistent income, focusing on companies with long histories of increasing dividends (at least 25 consecutive years). This status, combined with the TipRanks’ “Perfect 10” Smart Score, might be a compelling investment consideration for investors. It is worth mentioning that “Perfect 10” Smart Score stocks have historically outperformed the S&P 500 Index (SPX) by a wide margin.
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Global food products giant Sysco (NYSE:SYY) is one such stock with an impressive history of raising dividends for 54 consecutive years, which currently boasts a Smart Score of 10. Even more, SYY is loved by Wall Street analysts who see further upside potential in the stock. Now, let’s take a closer look at the stock.
Here’s What Makes SYY Stock Attractive
Sysco’s robust fundamentals, compelling business model, and resilience in challenging market conditions help instill confidence in the stock. Additionally, the company’s attractive dividend yield of 2.78% further enhances its appeal to investors.
SYY recently delivered year-over-year growth in both revenues and earnings in the fiscal first quarter. The results reflected volume growth, market share gains, and improved efficiency. Moreover, Sysco disclosed that it had entered Q2 with a positive volume trend, particularly in local markets, across all segments and restaurant categories.
Following the earnings announcement, UBS analyst Mark Carden reiterated a Buy recommendation on SYY stock on November 1. The analyst believes that the company is well-poised to navigate a complex macro environment.
Further, Stephens analyst Joshua Long reaffirmed a Buy rating on Sysco. Long maintains a positive outlook on SYY’s potential to capture market share. However, he lowered his price target on Sysco to $80 from $90.
Is Sysco a Good Stock to Buy?
Overall, Wall Street analysts are highly optimistic about SYY stock. It has received 11 Buy and two Hold recommendations for a Strong Buy consensus rating. Meanwhile, the average Sysco stock price target of $79.69 implies 10.6% upside potential from current levels. Shares of the company have gained over 3% so far in 2023.
Ending Note
Sysco’s consistent growth trajectory and strong position in the expanding food service industry make it an attractive investment option for those seeking stability and dividend returns.
