PG vs SYY: Dividend Yield, Growth & Safety Comparison
PROCTER & GAMBLE Co (PG) and Sysco Corp (SYY) are both in the Consumer Staples sector, making them natural rivals for dividend investors. Both stocks offer similar yields — PG at 2.63% and SYY at 2.43%. For dividend growth, PG leads with a 5-year CAGR of 12.5% versus SYY's 10.9%. SYY holds the edge in dividend safety with a "Safe" rating.
Key Metrics Comparison
| Metric | PG | SYY |
|---|
| Dividend Yield | 2.63% | 2.43% |
| Annual Dividend | $4.18 | $2.13 |
| 5-Year CAGR | 12.5% | 10.9% |
| Payout Ratio | 62% | 57% |
| Consecutive Years | 0 | 0 |
| Price | $160.56 | $90.70 |
Yield Comparison
PROCTER & GAMBLE Co (PG) currently yields 2.63%, which is solid for the broader market. That's 0.19% more than Sysco Corp (SYY), which yields 2.43%. In dollar terms, PG pays $4.18/share annually versus SYY's $2.13/share.
Dividend Growth
Over the past five years, PG has grown its dividend at a 12.5% CAGR compared to SYY's 10.9%. PG: Dividend growth is accelerating — the 3-year CAGR of 21.6% exceeds the 5-year rate of 12.5% and the 10-year rate of 8.5%. 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
PG's dividend safety is rated "Moderate." The payout ratio of 62% is moderate. The dividend is currently covered by earnings but leaves less room for growth. Earnings cover the dividend 1.6x. 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. Both have similar payout ratios — PG at 62% and SYY at 57%.
Income Comparison
A $10,000 investment in PG generates approximately $263/year in dividend income, compared to $243/year from SYY — a difference of $20/year. At $100,000, that gap widens to $200/year.
Verdict
- Best for income: PG
- Best for growth: PG
- Best for safety: SYY
Frequently Asked Questions
Which has a higher dividend yield, PG or SYY?
PROCTER & GAMBLE Co (PG) has a higher dividend yield of 2.63% compared to Sysco Corp (SYY) at 2.43%.
Is PG or SYY a better dividend growth stock?
PROCTER & GAMBLE Co has the stronger dividend growth with a 5-year CAGR of 12.5%, compared to Sysco Corp's 10.9%.
Which is safer for dividend income, PG or SYY?
PROCTER & GAMBLE Co's dividend safety is rated "Moderate" while Sysco Corp is rated "Safe." The payout ratio of 62% is moderate. The dividend is currently covered by earnings but leaves less room for growth. Earnings cover the dividend 1.6x. 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 PG vs SYY generate?
A $10,000 investment in PG generates approximately $263/year in dividends, while the same amount in SYY generates about $243/year.
Which has a lower payout ratio, PG or SYY?
Sysco Corp has a lower payout ratio of 57% compared to PROCTER & GAMBLE Co's 62%. A lower payout ratio generally indicates more room for dividend growth and better sustainability.
PG vs SYY: which is better for retirement income?
It depends on your priorities. PG for current income, PG for dividend growth, SYY for safety. Many retirement investors hold both for diversification.
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