SYY vs TGT: Dividend Comparison

At $90.70 per share, $10,000 buys about 110.2 shares of Sysco Corp (SYY). Each share pays $2.13 per year in dividends, so the position starts out generating roughly $235 per year — about $20 a month.

At $115.49 per share, $10,000 buys about 86.6 shares of Target Corp (TGT). Each share pays $4.50 per year in dividends, so the position starts out generating roughly $390 per year — about $32 a month.

TGT is the larger income stream from day one: $155 per year more on the same $10,000 invested.

Sysco Corp (SYY) has raised its dividend about 10.9% a year over the past five years. If that pace held, the $243 per year that $10,000 generates today at the current 2.43% yield would reach $682 per year by 2036 — a 6.8% yield on the original cost.

Target Corp (TGT) has raised its dividend about 9.4% a year over the past five years. If that pace held, the $401 per year that $10,000 generates today at the current 4.01% yield would reach $982 per year by 2036 — a 9.8% yield on the original cost.

On those trailing rates, TGT pays more in 2036: $982 versus $682 per year. The projection assumes each five-year growth rate persists and no dividends are reinvested — real payouts will differ.

Not within a realistic holding period. Sysco Corp (SYY) is growing its dividend faster (10.9% vs 9.4% a year), but the starting-yield gap — 4.01% for TGT vs 2.43% for SYY — is wide enough that the crossover sits more than 30 years out on trailing rates. For income you plan to spend, TGT's head start is decisive.

Sysco Corp (SYY) earns $3.71 per share against $2.13 paid out in dividends — 1.7x coverage (a 57% payout ratio).

Target Corp (TGT) earns $8.25 per share against $4.50 paid out in dividends — 1.8x coverage (a 55% payout ratio).

Coverage is similar for both, so neither dividend looks meaningfully more stretched than the other on current earnings.

For income you need right now, Target Corp (TGT) leads: $100,000 invested today pays about $335 a month at the current 4.01% yield, versus $203 a month from Sysco Corp (SYY) at 2.43%.

With a decade or more before the income is needed, SYY's faster dividend growth (10.9% vs 9.4% a year) matters more than the starting yield — raises compound into the larger paycheck over time.

On consistency: TGT has raised its dividend 42 consecutive years.

Many income investors simply hold both — the mix pairs current yield with growth and spreads single-name risk. Whichever way you lean, dividends are never guaranteed; recheck the payout each quarter rather than setting and forgetting.