12 Best Income Stocks to Buy Now

4. Sysco Corporation (NYSE:SYY)

Number of Hedge Fund Holders: 53

Dividend Yield as of December 28: 2.91%

Sysco Corporation (NYSE:SYY) is one of the best dividend stocks to invest in.

On December 12, Piper Sandler lowered its price target on Sysco Corporation (NYSE:SYY) to $80 from $81 and kept a Neutral rating on the shares. The firm said restaurant stocks have pulled back recently, driven mostly by concerns around demand trends in the restaurant industry. That matters because restaurants remain the largest customer base for food distributors.

Sysco Corporation (NYSE:SYY) left its full-year outlook unchanged, even after beating first-quarter estimates in October. The decision points to rising caution around economic uncertainty and how it may affect foodservice customers going forward. Cost discipline has helped soften some of the pressure, and the company has focused on improving transportation efficiency, managing warehouse maintenance, and tightening inventory levels. Those steps have helped offset higher product costs, particularly in meat and seafood.

Management said the first-quarter increase in gross profit came largely from effective handling of product cost inflation and better sourcing decisions. Gross margin expanded by 13 basis points to 18.5%. Looking ahead, Sysco Corporation (NYSE:SYY) continues to expect fiscal 2026 sales growth of 3% to 5%. It also projects annual adjusted profit growth in the range of 1% to 3%.

During the quarter, sales in the US foodservice segment rose 2.9%, down from 4.6% growth a year earlier. Adjusted profit reached $1.15 per share, topping analysts’ estimates of $1.12, according to LSEG. Net sales totaled $21.15 billion, slightly ahead of expectations of $21.08 billion.

Sysco Corporation (NYSE:SYY) is the world’s largest food distributor, supplying food, equipment, and related products to restaurants, schools, hospitals, hotels, and other businesses that prepare meals away from home.