PepsiCo, Inc. (NASDAQ:PEP) Declares Dividend Increase – $1.48 Per Share

PepsiCo, Inc. (NASDAQ:PEP) declared a quarterly dividend on Wednesday, May 6th. Stockholders of record on Friday, June 5th will be given a dividend of 1.48 per share on Tuesday, June 30th. This represents a c) dividend on an annualized basis and a dividend yield of 3.8%. The ex-dividend date of this dividend is Friday, June 5th. This is a 4.0% increase from PepsiCo’s previous quarterly dividend of $1.42.

PepsiCo has raised its dividend payment by an average of 0.1%annually over the last three years and has increased its dividend annually for the last 54 consecutive years. PepsiCo has a payout ratio of 68.1% meaning its dividend is sufficiently covered by earnings. Equities research analysts expect PepsiCo to earn $9.17 per share next year, which means the company should continue to be able to cover its $5.69 annual dividend with an expected future payout ratio of 62.1%.

PepsiCo Trading Down 0.3%

PepsiCo stock opened at $155.54 on Thursday. The company has a debt-to-equity ratio of 1.98, a quick ratio of 0.72 and a current ratio of 0.90. PepsiCo has a fifty-two week low of $127.60 and a fifty-two week high of $171.48. The stock has a market cap of $212.59 billion, a P/E ratio of 24.35, a PEG ratio of 2.84 and a beta of 0.38. The firm’s fifty day moving average price is $157.51 and its 200-day moving average price is $152.48.

PepsiCo (NASDAQ:PEP) last posted its earnings results on Thursday, April 16th. The company reported $1.61 EPS for the quarter, topping the consensus estimate of $1.55 by $0.06. PepsiCo had a return on equity of 56.61% and a net margin of 9.15%.The business had revenue of $19.44 billion during the quarter, compared to analysts’ expectations of $18.89 billion. During the same period in the previous year, the business earned $1.48 earnings per share. The firm’s revenue was up 8.5% on a year-over-year basis. PepsiCo has set its FY 2026 guidance at 8.465-8.628 EPS. Equities research analysts forecast that PepsiCo will post 8.63 earnings per share for the current fiscal year.

PepsiCo declared that its Board of Directors has approved a stock buyback program on Tuesday, February 3rd that allows the company to buyback $10.00 billion in shares. This buyback authorization allows the company to reacquire up to 4.7% of its shares through open market purchases. Shares buyback programs are usually a sign that the company’s management believes its shares are undervalued.

About PepsiCo

PepsiCo, Inc (NASDAQ: PEP) is a multinational food and beverage company headquartered in Purchase, New York. The company develops, manufactures, markets and sells a broad portfolio of branded food and beverage products, including carbonated and noncarbonated soft drinks, bottled water, sports drinks, juices, ready-to-drink teas and coffees, salty snacks, cereals, and other convenient foods. Its leading consumer brands include Pepsi, Mountain Dew, Gatorade, Tropicana, Quaker, Lay’s, Doritos and Cheetos, among others.

Formed through the 1965 merger of Pepsi-Cola and Frito-Lay, PepsiCo has grown into a global business with integrated manufacturing, distribution and marketing operations.