Sysco Corporation (SYY): A Reliable Choice for a Dividend Stock Portfolio in Retirement

Sysco Corporation (NYSE:SYY) is included among the Best Retirement Stocks for a Dividend Stock Portfolio.

Sysco Corporation (NYSE:SYY) is the largest foodservice distributor in North America, serving restaurants, hospitals, schools, and hospitality businesses. Its main operations revolve around delivering and selling fresh, frozen, and packaged foods, as well as equipment and supplies, to commercial clients.

Success in this industry depends on holding and expanding share in the highly fragmented US foodservice market, valued at $360 billion in 2023. Sysco Corporation (NYSE:SYY) controlled roughly 17% of that market in 2023, competing with both regional and national players in a sector with low barriers to entry. Efficiency in supply chain management, competitive pricing, compliance with regulations, and effective workforce management are all essential. At the same time, investments in employee retention, technology, customer service, and international growth strategies help the company strengthen its leadership in the industry.

Sysco Corporation (NYSE:SYY) is one of the best stocks for a dividend stock portfolio, as the company is a Dividend King with 55 consecutive years of dividend growth. The company offers a quarterly dividend of $0.54 per share and has a dividend yield of 2.62%, as of September 21.

While we acknowledge the potential of SYY as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.