PepsiCo, Inc. (NASDAQ:PEP) Plans Dividend Increase - $1.42 Per Share

PepsiCo, Inc. (NASDAQ:PEP - Get Free Report) declared a quarterly dividend on Tuesday, May 6th, RTT News reports. Investors of record on Friday, June 6th will be given a dividend of 1.4225 per share on Monday, June 30th. This represents a $5.69 annualized dividend and a yield of 4.36%. The ex-dividend date is Friday, June 6th. This is a 5.0% increase from PepsiCo's previous quarterly dividend of $1.36.

PepsiCo has increased its dividend by an average of 7.9% 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 67.9% indicating that its dividend is sufficiently covered by earnings. Equities research analysts expect PepsiCo to earn $8.84 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 64.4%.

PepsiCo Trading Down 0.8 %

Shares of PepsiCo stock traded down $0.99 on Friday, reaching $130.44. The company had a trading volume of 4,766,754 shares, compared to its average volume of 6,289,092. The firm has a market cap of $178.84 billion, a price-to-earnings ratio of 18.77, a P/E/G ratio of 3.09 and a beta of 0.47. The firm's 50-day moving average price is $143.73 and its two-hundred day moving average price is $150.88. PepsiCo has a 1 year low of $130.16 and a 1 year high of $183.41. The company has a debt-to-equity ratio of 2.05, a current ratio of 0.82 and a quick ratio of 0.65.

PepsiCo (NASDAQ:PEP - Get Free Report) last released its earnings results on Thursday, April 24th. The company reported $1.48 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.49 by ($0.01). PepsiCo had a return on equity of 58.87% and a net margin of 10.43%. The firm had revenue of $17.92 billion during the quarter, compared to the consensus estimate of $17.81 billion. During the same quarter last year, the business posted $1.61 EPS. PepsiCo's revenue was down 1.8% compared to the same quarter last year. As a group, research analysts predict that PepsiCo will post 8.3 earnings per share for the current fiscal year.

Analyst Upgrades and Downgrades

PEP has been the subject of a number of research reports. Deutsche Bank Aktiengesellschaft lowered their price target on PepsiCo from $184.00 to $178.00 and set a "buy" rating for the company in a report on Wednesday, January 22nd. Barclays lowered their price objective on shares of PepsiCo from $143.00 to $135.00 and set an "equal weight" rating for the company in a research note on Monday, April 28th. CICC Research reaffirmed a "market perform" rating on shares of PepsiCo in a research report on Friday, February 7th. HSBC reduced their price objective on shares of PepsiCo from $186.00 to $170.00 and set a "hold" rating for the company in a research note on Tuesday, February 4th. Finally, BNP Paribas reduced their price target on PepsiCo from $162.00 to $160.00 and set a "neutral" rating for the company in a research report on Tuesday, February 4th. One investment analyst has rated the stock with a sell rating, fourteen have given a hold rating and four have given a buy rating to the company. According to MarketBeat, the stock has an average rating of "Hold" and an average price target of $160.69.

Institutional Trading of PepsiCo

A hedge fund recently raised its stake in PepsiCo stock. Brighton Jones LLC grew its stake in PepsiCo, Inc. (NASDAQ:PEP - Free Report) by 12.4% during the 4th quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The institutional investor owned 59,392 shares of the company's stock after purchasing an additional 6,574 shares during the period. Brighton Jones LLC's holdings in PepsiCo were worth $9,031,000 at the end of the most recent quarter. Institutional investors own 73.07% of the company's stock.

PepsiCo Company Profile

PepsiCo, Inc engages in the manufacture, marketing, distribution, and sale of various beverages and convenient foods worldwide. The company operates through seven segments: Frito-Lay North America; Quaker Foods North America; PepsiCo Beverages North America; Latin America; Europe; Africa, Middle East and South Asia; and Asia Pacific, Australia and New Zealand and China Region.