SYY vs WMT: Dividend Yield, Growth & Safety Comparison
Sysco Corp (SYY) and Walmart Inc. (WMT) are both in the Consumer Staples sector, making them natural rivals for dividend investors. SYY offers a significantly higher 2.43% yield compared to WMT's 0.72%, a gap of 1.71%. For dividend growth, SYY leads with a 5-year CAGR of 10.9% versus WMT's 6.4%. Both stocks carry a "Safe" dividend safety rating. WMT is a Dividend Aristocrat with 43 years of consecutive increases.
Key Metrics Comparison
| Metric | SYY | WMT |
|---|
| Dividend Yield | 2.43% | 0.72% |
| Annual Dividend | $2.13 | $0.91 |
| 5-Year CAGR | 10.9% | 6.4% |
| Payout Ratio | 57% | 32% |
| Consecutive Years | 0 | 43 |
| Price | $90.70 | $133.79 |
Yield Comparison
Sysco Corp (SYY) currently yields 2.43%, which is solid for the broader market. That's 1.71% more than Walmart Inc. (WMT), which yields 0.72%. In dollar terms, SYY pays $2.13/share annually versus WMT's $0.91/share.
Dividend Growth
Over the past five years, SYY has grown its dividend at a 10.9% CAGR compared to WMT's 6.4%. 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%. WMT: Dividend growth is accelerating — the 3-year CAGR of 11.2% exceeds the 5-year rate of 6.4% and the 10-year rate of 3.9%.
Dividend Safety
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. WMT's dividend safety is rated "Safe." The payout ratio of 32% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 3.1x. WMT's payout ratio of 32% is more conservative than SYY's 57%, suggesting more room for future increases.
Income Comparison
A $10,000 investment in SYY generates approximately $243/year in dividend income, compared to $72/year from WMT — a difference of $171/year. At $100,000, that gap widens to $1710/year.
Verdict
- Best for income: SYY
- Best for growth: SYY
- Best for safety: WMT
Frequently Asked Questions
Which has a higher dividend yield, SYY or WMT?
Sysco Corp (SYY) has a higher dividend yield of 2.43% compared to Walmart Inc. (WMT) at 0.72%.
Is SYY or WMT a better dividend growth stock?
Sysco Corp has the stronger dividend growth with a 5-year CAGR of 10.9%, compared to Walmart Inc.'s 6.4%.
Which is safer for dividend income, SYY or WMT?
Sysco Corp's dividend safety is rated "Safe" while Walmart Inc. is rated "Safe." The payout ratio of 57% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 1.7x. The payout ratio of 32% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 3.1x.
How much income does $10,000 in SYY vs WMT generate?
A $10,000 investment in SYY generates approximately $243/year in dividends, while the same amount in WMT generates about $72/year.
Is SYY or WMT a Dividend Aristocrat?
Walmart Inc. is a Dividend Aristocrat with 43 consecutive years of increases. Sysco Corp does not currently qualify for aristocrat status.
Which has a lower payout ratio, SYY or WMT?
Walmart Inc. has a lower payout ratio of 32% compared to Sysco Corp's 57%. A lower payout ratio generally indicates more room for dividend growth and better sustainability.
SYY vs WMT: which is better for retirement income?
It depends on your priorities. SYY for current income, SYY for dividend growth, WMT for safety. Many retirement investors hold both for diversification.
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