Sysco Corp. (SYY) Dividends

SYY Price Forecast Based on Dividend Discount Model

A technique commonly used by dividend investors to value dividend-issuing stocks is the Dividend Discount Model (DDM), which seeks to determine a fair share price based on the dividend provided by the company relative to a number of other company-specific factors. Regarding Sysco Corp, the DDM model generated by StockNews estimates a return of negative 45.64% in comparison to its current price. Digging deeper, the aspects of Sysco Corp's dividend discount model that we found most interesting were:

• If we compare the valuation opportunity a dividend discount model provides relative to other dividend stocks in the Consumer Defensive sector, the expected return of -45.64%, based on the stock's current share price and target price based on a dividend discount model, is greater than 25.3% of the DDM-forecasted return of its its sector peers.
• Compared to all dividend issuing stocks in our set, SYY has a discount rate lower than 25.3% of them (a lower discount rate is associated with lower risk).
• A stock's beta generally indicates its volatility relative to the broader equity market; for Sysco Corp, its beta is lower than just 20.96% of dividend issuing stocks we observed.
• As other dividend issuers in the Consumer Defensive sector, Sysco Corp has an equity discount rate lower than 4.82% of them.

SYY Dividends vs. Peers