PepsiCo, Inc. (NASDAQ:PEP) Announces $1.48 Quarterly Dividend

Key Points

• PepsiCo declared a quarterly dividend of $1.48 per share, payable September 30 to shareholders of record on September 4, representing an annualized $5.92 dividend and a 4.2% yield.
• PepsiCo has increased its dividend for 54 consecutive years; its 70.8% payout ratio is considered covered by earnings, with analysts forecasting a lower 65.9% payout ratio next year.
• The company slightly beat quarterly earnings and revenue expectations, but faces ongoing weakness in North American snacks and beverages, restructuring-related job cuts, and uncertainty over when growth will reaccelerate.

PepsiCo, Inc. (NASDAQ:PEP - Get Free Report) announced a quarterly dividend on Friday, July 17th. Investors of record on Friday, September 4th will be paid a dividend of 1.48 per share on Wednesday, September 30th. This represents a c) annualized dividend and a dividend yield of 4.2%. The ex-dividend date is Friday, September 4th.

PepsiCo has raised its dividend payment by an average of 0.1%per year over the last three years and has raised its dividend every year for the last 54 years. PepsiCo has a payout ratio of 70.8% meaning its dividend is sufficiently covered by earnings. Equities analysts expect PepsiCo to earn $8.99 per share next year, which means the company should continue to be able to cover its $5.92 annual dividend with an expected future payout ratio of 65.9%.

PepsiCo Price Performance

PepsiCo stock opened at $139.79 on Wednesday. The stock's 50 day moving average price is $139.80 and its two-hundred day moving average price is $149.00. The stock has a market capitalization of $190.80 billion, a price-to-earnings ratio of 18.32, a PEG ratio of 3.08 and a beta of 0.35. The company has a debt-to-equity ratio of 1.91, a quick ratio of 0.74 and a current ratio of 0.93. PepsiCo has a 52-week low of $133.73 and a 52-week high of $171.48.

PepsiCo (NASDAQ:PEP - Get Free Report) last posted its quarterly earnings results on Thursday, July 9th. The company reported $2.20 earnings per share for the quarter, beating the consensus estimate of $2.19 by $0.01. PepsiCo had a net margin of 10.78% and a return on equity of 54.63%. The firm had revenue of $24.18 billion during the quarter, compared to the consensus estimate of $23.95 billion. During the same period in the previous year, the firm posted $0.92 earnings per share. The business's revenue was up 6.4% compared to the same quarter last year. PepsiCo has set its FY 2026 guidance at 8.550-8.710 EPS. On average, equities analysts predict that PepsiCo will post 8.57 earnings per share for the current year.

PepsiCo News Summary

Here are the key news stories impacting PepsiCo this week:

• Positive Sentiment: Management reportedly reiterated its revenue-growth targets, supporting the view that PepsiCo can maintain growth despite current category pressure. Analysts also highlight PEP’s comparatively attractive dividend and diversification benefits. PepsiCo Management Reiterates Revenue Growth Targets
• Positive Sentiment: PepsiCo joined Mondelēz International and pladis in a circular-packaging trial. The initiative could improve sustainability credentials and help address packaging regulation and cost pressures over time. Circular Packaging Trial
• Positive Sentiment: A partnership with Carlsberg reportedly expanded the brewer’s soft-drink segment by 9%, indicating potential for PepsiCo’s beverage distribution partnerships to generate incremental volume. PepsiCo and Carlsberg Partnership
• Neutral Sentiment: Investment coverage frames PepsiCo as a discounted dividend alternative to Coca-Cola, but the valuation discount reflects weaker recent momentum and uncertainty over when growth will reaccelerate. PepsiCo Versus Coca-Cola
• Neutral Sentiment: PepsiCo veteran George Kovoor was named CEO of Parle Biscuits. The executive move may be relevant to industry competition in India but has no immediate direct effect on PEP’s earnings. George Kovoor Named Parle Biscuits CEO
• Negative Sentiment: PepsiCo is cutting 105 warehouse jobs in another U.S. distribution change, reportedly the fourth such warehouse or distribution action affecting hundreds of workers this year. The restructuring may reduce costs, but also signals ongoing efficiency and demand concerns. PepsiCo Warehouse Job Cuts
• Negative Sentiment: Analysts continue to debate whether PepsiCo’s North American weakness is temporary or structural, citing softer consumer spending and pressure in snacks and beverages. Snack share gains and beverage resilience provide some offset, but a prolonged recovery could limit earnings growth. PepsiCo North America Challenge
• Negative Sentiment: PepsiCo confirmed damage to a Ukraine plant following an apparent strike, although no injuries were reported. Separately, Indian authorities seized products in an alleged relabeling scheme involving PepsiCo brands; the company was not accused of wrongdoing, but the incident creates reputational and supply-chain risk. PepsiCo Ukraine Plant Damage

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.

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