Sysco Corporation (NYSE:SYY): Among the Best High Yield Stocks to Buy in April for Dividend Capture
We recently published a list of . In this article, we are going to take a look at where Sysco Corporation (NYSE:SYY) stands against other best high yield stocks to buy in April.
Dividend investing appears to be a simple strategy on the surface, but in reality, it requires a much deeper analysis. These stocks are best known for their long-term appeal, a trait recognized by seasoned investors. Over the years, dividend growth stocks have outperformed other asset classes during periods of economic downturns.
This can also be observed in today's economic landscape. With the Trump administration's trade war or soft economic data, dividend stocks have the potential to outperform, according to analysts. In addition, these equities are currently trading at lower price-to-earnings ratios than the broader market, which could be a great entry point for income investors. Wolfe Research analyst Chris Senyek also advised investors to pay attention to dividend growth stocks as they can serve as a buffer against market downturns. Here is what he said:
'Our favorite defensive dividend strategy, dividend aristocrats, is a good place for investors to 'hide' in the event of an economic slowdown or recessionary environment.'
For this, he recommends investing in the Dividend Aristocrats Index, which tracks the performance of companies that have achieved 25 consecutive years of dividend growth. The index is outperforming the broader market this year, surging by over 2%, compared to the market's nearly 5% decline.
Though dividend aristocrats are gaining this year, their performance in the last two years has been less impressive. With AI taking center stage, dividend stocks were overlooked by investors, leaving many still trading at a discount. Analysts are presenting a strong outlook for dividend stocks this year because of the changing economic and political landscape. According to a report by BNY Investments, dividend stocks are poised for growth this year as tech stocks have also entered into the dividend territory last year. Combining factors of growth and income can bode well for dividend equities. As of September 2024, nearly 80% of the companies in the S&P index pay dividends to shareholders, 24% of which are from the tech sector. The percentage has grown significantly from 13% a decade ago, as reported by BNY.
Dividend yield is an important aspect of dividend investing, and investors often pay attention to yields when making investment decisions. However, falling for yield traps does more harm than good. Dan Lefkovitz, a strategist for Morningstar Indexes, made the following comment for investors with a preference for high yields:
'It's really critical to be selective when it comes to buying dividend-paying stocks and chasing yield. Looking for the most yield-rich areas of the market can often lead you into troubled areas and dividend traps—companies that have a nice-looking yield that is ultimately unsustainable. You have to screen for dividend durability and reliability going forward.'
While dividend stocks are mostly known for their long-term appeal, some investors also reap profits in the short term through a dividend capture strategy. By using this approach, investors can buy shares of the company just before it pays dividends and then sell those shares shortly after receiving the dividend. The main aim of this strategy is to capitalize on dividend income while also benefiting from a stock's price increase leading up to the dividend announcement. Given this, we will take a look at some of the best dividend stocks for a dividend capture strategy.
A butcher shop showcasing fresh meats and seafood for customers.
Our Methodology:
For this list, we selected dividend stocks that will trade ex-dividend in April 2025. Ex-dividend date indicates the cutoff day to buy a stock to receive its upcoming dividend payment. These stocks have dividend yields above 2%, as of March 30. The stocks are ranked according to their ex-dividend dates.
At Insider Monkey, we are obsessed with hedge funds. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points ().
Ex-Dividend Date: April 4
Dividend Yield as of March 30: 2.75%
Sysco Corporation (NYSE:SYY) is an American multinational company that specializes in marketing and distributing food and related products. The company's operations span North America and Europe, and it has an extensive distribution network. In addition, it has diverse product offerings, including dairy, meat, and non-food items. This diversification has helped the company a lot over the years to mitigate risks associated with different economic cycles. In the past five years, the stock generated a nearly 88% return for shareholders.
In fiscal Q2 2025, Sysco Corporation (NYSE:SYY) reported a revenue of $20.15 billion, which showed a 4.47% growth from the same period last year. The revenue also surpassed analysts' estimates by $49.8 million. The company's food service volume also saw a 1.4% YoY growth. Its gross profit of $3.7 billion also showed a 3.9% growth on a YoY basis. The company's international business remained the winner, recording a 14.5% increase in operating income and a 26.5% increase in adjusted operating income.
Sysco Corporation (NYSE:SYY)'s cash position also remained stable. In the first 26 weeks of the fiscal 2025, the company generated $498 million in operating cash flow. Moreover, it returned $803 million to shareholders, including $503 million in dividends. Currently, it offers a quarterly dividend of $0.51 per share and has a dividend yield of 2.75%, as of March 30. The company is a Dividend King with 54 consecutive years of dividend growth under its belt. It is among the best dividend stocks for a dividend capture strategy.
Overall, SYY ranks 14th on our list of the best the best high yield stocks for a dividend capture strategy. While we acknowledge the potential of SYY as an investment, our conviction lies in the belief that some deeply undervalued dividend stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for a deeply undervalued dividend stock that is more promising than SYY but that trades at 10 times its earnings and grows its earnings at double digit rates annually, check out our report about the .
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at .
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Insider
23 minutes ago
- Business Insider
US-China trade, inflation, Apple's big event: Here's what the stock market is watching this week
Investors will be monitoring a host of potentially market-moving events this week, with updates due on trade and inflation, while Apple kicks off a highly anticipated product event. Recession fears have edged down after the turmoil that racked markets earlier in the spring, but the market is still struggling with uncertainty regarding President Donald Trump's trade policies and their implications for the economy. While last week's jobs report showed a solid labor market, investors are monitoring how the inflation side of the Federal Reserve's dual mandate fares this week, and how it will influence the rate-cut outlook for the year. Meanwhile, Apple's Worldwide Developers Conference will provide insight into not only new software updates but also the future of the AI race among mega-cap tech companies. Here's what investors are watching this week. US-China trade talks After last week's phone call between Trump and Chinese president Xi Jinping, China and US trade officials are meeting in London on Monday for two days of trade negotiations. Last month's trade talks were key to calming recession fears and helped propel the S&P 500 to its highest levels since February, but concerns still remain. The biggest negotiation topic will be over China's exports of rare earth metals, which are critical components in manufacturing semiconductors, smartphones, and other technologies. Continued improvements in trade relations between the two countries will be critical to reducing volatility in the market and could shed clarity on the direction of tariff rates. CPI data The consumer price index for May will be released on Wednesday. Last month 's reading of 2.3% was fairly benign, but investors will continue to watch for signs of Trump's tariffs showing up in the hard data. Importantly, the reading will be key in determining the Fed's next move. The median forecast is for annual consumer inflation to have risen 2.5% last month. Meanwhile, expectations for the June 17 Fed meeting are for officials to keep interest rates unchanged. "The big surprise could be how little Trump's tariffs are boosting inflation despite upward pressures on prices-paid and prices-received indexes in the Fed's regional business surveys," wrote on Sunday. Yet, some strategists have predicted that inflation will pick up in the back half of this year, spurring stagflation concerns. Meanwhile, consumer sentiment will get a fresh reading on Friday. Sentiment has been low as Americans feel pessimistic about tariffs, though hard data that the Fed looks at has held up. Apple's Worldwide Developers Conference All eyes will be on Apple this week as it kicks off its annual Worldwide Developers Conference, where the company is expected to unveil new AI features embedded in iOS 19. The conference will be an opportunity for Apple to address several headwinds it has faced this year. "In a nutshell WWDC is a pivotal moment in Apple's future as the developers are the hearts and lungs of the Cupertino growth story with the Street being laser-focused on Apple today," Wedbush analyst Dan Ives wrote. The tech giant has trailed peers like Microsoft and Google in the AI race, and its stock has taken a beating this year as the worst-performing Magnificent Seven member, largely due to concerns about tariffs and iPhone production. Last month, Trump threatened a tariff of at least 25% on iPhones not made in the US. Investors will be looking for updates on Apple Intelligence as well, as the company's AI offering has been underwhelming to Wall Street. A key bond auction The US Treasury sells a lot of bonds, and usually the sale is unremarkable for markets. However, with deficit concerns running high as the GOP budget bill moves through Congress, a $22 billion auction of 30-year bonds on Thursday could move the market if demand appears weak. A weak sale of 20-year bonds last month rattled markets and sent yields surging, and all eyes are on this week's sale as a potential investor referendum on the sweeping tax and spending bill.
The Hill
24 minutes ago
- The Hill
US, Chinese trade negotiators meeting in London
Top U.S. and Chinese officials are meeting in London on Monday to try to fortify the countries' temporary trade truce, which is currently on track to expire in August. Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick and U.S. trade representative Jamieson Greer are in the U.K. for the talks with Chinese Vice President He Lifeng. It's unclear how long negotiations could last, but Chinese officials have predicted they could extend several days. 'The two sides need to make good use of the economic and trade consultation mechanism already in place, and seek win-win results in the spirit of equality and respect for each other's concerns,' Chinese Foreign Ministry spokesman Lin Jian wrote in a post on X ahead of the meeting. 'The Chinese side is sincere about this, and at the same time has its principles.' President Trump confirmed plans for the London confab last week after a phone call with Chinese President Xi Jinping, who the president has described as 'extremely hard to make a deal with.' 'The call lasted approximately one and a half hours, and resulted in a very positive conclusion for both Countries,' Trump wrote in a social media post Thursday. The two sides have been attempting to hash out a long-term trade agreement following Trump's announcement of sweeping tariff hikes on most countries in April. The Trump administration urged countries last week to come forward with deals more favorable to U.S. interests. U.S. and Chinese leaders brokered their temporary pause in the tariff hikes after meeting in Geneva last month. Under that arrangement, the U.S. lowered its tariff rate on Chinese goods from 145 percent to 30 percent, and China agreed to lower its tariff to 10 percent from 125 percent for 90 days. China's exports to the U.S. were down 35 percent in May compared to last year, according to the latest analysis from Dutch multinational banking and financial services firm ING Group, adding pressure ahead of the latest round of meetings between the two countries. 'Exports to the U.S. surprisingly decelerated despite the trade war reprieve,' ING's analysts wrote. 'We expect that export growth to the US could recover in the coming months.' 'We could see import front-loading amid the still elevated risk that tariffs could once again move higher in light the uncertainty about trade talks over the past month,' the firm added.
Yahoo
24 minutes ago
- Yahoo
Park Aerospace Corp. Declares Cash Dividend
NEWTON, Kan., June 09, 2025 (GLOBE NEWSWIRE) -- The Board of Directors of Park Aerospace Corp. (NYSE-PKE) has declared a regular quarterly cash dividend of $0.125 per share payable August 1, 2025 to shareholders of record at the close of business on July 1, 2025. Park has paid 40 consecutive years of uninterrupted regular quarterly cash dividends, without ever skipping a dividend payment or reducing the amount of the dividend. The Company has paid $603.6 million in cash dividends, or $29.475 per share, since the beginning of the Company's 2005 fiscal year. Park Aerospace Corp. develops and manufactures solution and hot-melt advanced composite materials used to produce composite structures for the global aerospace markets. Park's advanced composite materials include film adhesives (Aeroadhere®) and lightning strike protection materials (Electroglide®). Park offers an array of composite materials specifically designed for hand lay-up or automated fiber placement (AFP) manufacturing applications. Park's advanced composite materials are used to produce primary and secondary structures for jet engines, large and regional transport aircraft, military aircraft, Unmanned Aerial Vehicles (UAVs commonly referred to as 'drones'), business jets, general aviation aircraft and rotary wing aircraft. Park also offers specialty ablative materials for rocket motors and nozzles and specially designed materials for radome applications. As a complement to Park's advanced composite materials offering, Park designs and fabricates composite parts, structures and assemblies and low volume tooling for the aerospace industry. Target markets for Park's composite parts and structures (which include Park's proprietary composite SigmaStrut™ and AlphaStrut™ product lines) are, among others, prototype and development aircraft, special mission aircraft, spares for legacy military and civilian aircraft and exotic spacecraft. Park's objective is to do what others are either unwilling or unable to do. When nobody else wants to do it because it is too difficult, too small or too annoying, sign us up. Additional corporate information is available on the Company's website at Contact: Donna D'Amico-Annitto 486 North Oliver Road, Bldg. ZNewton, Kansas 67114(316) 283-6500Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
