Wednesday, November 17, 2010

How Much Is Sysco Worth?

Sysco (NYSE: SYY) is practically the epitome of boring. The company distributes foodstuffs to hundreds of thousands of customers around the country so that those customers can chop, fry, cook, and put delicious meals in front of us when we go out to eat.
The company is a big dog in an even bigger industry, but it's neither a sexy industry nor one that promises scorching growth. On the flip side, though, Sysco's competitive position, scale, and industry make it a particularly safe and stable pick in a world where security seems to be AWOL. At the same time, Sysco's stock pays a none-too-shabby 3.6% dividend and has an enviable record of growing its payout.

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