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

Key Points

• PepsiCo announced a quarterly dividend of $1.48 per share (ex-dividend/record date: June 5; payable June 30), a 4.0% increase from the prior quarterly payout and implying a ~3.8% yield.
• The company has raised its dividend every year for 54 years, and the payout appears reasonably covered with a current payout ratio around 68.1% and an expected future payout ratio near 62.1% based on analyst EPS forecasts.
• PepsiCo recently beat expectations with Q results of $1.61 EPS vs. $1.55 estimated and revenue of $19.44B (vs. $18.89B), and provided FY2026 guidance of roughly $8.465–$8.628 per share (consensus ~8.63).

PepsiCo, Inc. (NASDAQ:PEP - Get Free Report) announced a quarterly dividend on Wednesday, May 6th. Shareholders 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 yield of 3.8%. The ex-dividend date 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 raised its dividend every year for the last 54 years. PepsiCo has a dividend payout ratio of 68.1% meaning its dividend is sufficiently covered by earnings. 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%

PEP stock opened at $155.54 on Thursday. PepsiCo has a 1-year low of $127.60 and a 1-year high of $171.48. The business's 50 day moving average is $157.51 and its 200-day moving average is $152.48. The company has a current ratio of 0.90, a quick ratio of 0.72 and a debt-to-equity ratio of 1.98. The firm has a market cap of $212.59 billion, a P/E ratio of 24.35, a P/E/G ratio of 2.84 and a beta of 0.38.

PepsiCo (NASDAQ:PEP - Get Free Report) last posted its quarterly earnings data on Thursday, April 16th. The company reported $1.61 earnings per share for the quarter, beating the consensus estimate of $1.55 by $0.06. The firm had revenue of $19.44 billion during the quarter, compared to analysts' expectations of $18.89 billion. PepsiCo had a net margin of 9.15% and a return on equity of 56.61%. The company's quarterly revenue was up 8.5% compared to the same quarter last year. During the same quarter last year, the company posted $1.48 EPS. PepsiCo has set its FY 2026 guidance at 8.465-8.628 EPS. Equities analysts anticipate that PepsiCo will post 8.63 earnings per share for the current fiscal year.

Analyst Ratings Changes

A number of research analysts recently issued reports on the stock. Argus upgraded shares of PepsiCo to a "hold" rating in a report on Tuesday, February 17th. Weiss Ratings reiterated a "hold (c)" rating on shares of PepsiCo in a research note on Wednesday, April 8th. Deutsche Bank Aktiengesellschaft raised their target price on shares of PepsiCo from $169.00 to $173.00 and gave the company a "buy" rating in a research note on Friday, April 17th. Barclays boosted their price target on PepsiCo from $154.00 to $158.00 and gave the stock an "equal weight" rating in a research report on Monday, April 20th. Finally, Wells Fargo & Company lifted their target price on PepsiCo from $154.00 to $165.00 and gave the stock an "equal weight" rating in a research note on Wednesday, February 4th. Eight research analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the company presently has a consensus rating of "Hold" and a consensus price target of $170.26.

PepsiCo Company Profile

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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