HRL vs SYY: Dividend Yield, Growth & Safety Comparison
Hormel Foods Corp /De/ (HRL) and Sysco Corp (SYY) are both in the Consumer Staples sector, making them natural rivals for dividend investors. HRL offers a significantly higher 4.77% yield compared to SYY's 2.43%, a gap of 2.34%. For dividend growth, HRL leads with a 5-year CAGR of 12.1% versus SYY's 10.9%. Both stocks carry a "Safe" dividend safety rating.
Key Metrics Comparison
| Metric | HRL | SYY |
|---|
| Dividend Yield | 4.77% | 2.43% |
| Annual Dividend | $1.16 | $2.13 |
| 5-Year CAGR | 12.1% | 10.9% |
| Payout Ratio | 1% | 57% |
| Consecutive Years | 0 | 0 |
| Price | $23.74 | $90.70 |
Yield Comparison
Hormel Foods Corp /De/ (HRL) currently yields 4.77%, which is attractive for the broader market. That's 2.34% more than Sysco Corp (SYY), which yields 2.43%. In dollar terms, HRL pays $1.16/share annually versus SYY's $2.13/share.
Dividend Growth
Over the past five years, HRL has grown its dividend at a 12.1% CAGR compared to SYY's 10.9%. HRL: Dividend growth is accelerating — the 3-year CAGR of 18.6% exceeds the 5-year rate of 12.1% and the 10-year rate of 11.5%. SYY: Dividend growth is accelerating — the 3-year CAGR of 18.7% exceeds the 5-year rate of 10.9% and the 10-year rate of 9.5%.
Dividend Safety
HRL's dividend safety is rated "Safe." The payout ratio of 1% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 0.8x. SYY's dividend safety is rated "Safe." The payout ratio of 57% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 1.7x. HRL's payout ratio of 1% is more conservative than SYY's 57%, suggesting more room for future increases.
Income Comparison
A $10,000 investment in HRL generates approximately $477/year in dividend income, compared to $243/year from SYY — a difference of $234/year. At $100,000, that gap widens to $2340/year.
Verdict
- Best for income: HRL
- Best for growth: HRL
- Best for safety: HRL
Frequently Asked Questions
Which has a higher dividend yield, HRL or SYY?
Hormel Foods Corp /De/ (HRL) has a higher dividend yield of 4.77% compared to Sysco Corp (SYY) at 2.43%.
Is HRL or SYY a better dividend growth stock?
Hormel Foods Corp /De/ has the stronger dividend growth with a 5-year CAGR of 12.1%, compared to Sysco Corp's 10.9%.
Which is safer for dividend income, HRL or SYY?
Hormel Foods Corp /De/'s dividend safety is rated "Safe" while Sysco Corp is rated "Safe." The payout ratio of 1% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 0.8x. The payout ratio of 57% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 1.7x.
How much income does $10,000 in HRL vs SYY generate?
A $10,000 investment in HRL generates approximately $477/year in dividends, while the same amount in SYY generates about $243/year.
Which has a lower payout ratio, HRL or SYY?
Hormel Foods Corp /De/ has a lower payout ratio of 1% compared to Sysco Corp's 57%. A lower payout ratio generally indicates more room for dividend growth and better sustainability.
HRL vs SYY: which is better for retirement income?
It depends on your priorities. HRL for current income, HRL for dividend growth, HRL for safety. Many retirement investors hold both for diversification.
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