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

PepsiCo, Inc. (NASDAQ:PEP) declared 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 increased its dividend by an average of 0.1%per year over the last three years and has increased its dividend every year for the last 54 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 Stock Down 0.1%

PEP traded down $0.17 during trading on Thursday, reaching $155.79. The stock had a trading volume of 195,193 shares, compared to its average volume of 7,318,974. The stock’s 50 day moving average is $157.51 and its two-hundred 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 company has a market capitalization of $212.92 billion, a price-to-earnings ratio of 24.45, a P/E/G ratio of 2.84 and a beta of 0.38. PepsiCo has a one year low of $127.60 and a one year high of $171.48.

PepsiCo (NASDAQ:PEP) last posted its quarterly earnings data on Thursday, April 16th. The company reported $1.61 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates 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 the consensus estimate of $18.89 billion. During the same quarter in the prior year, the company earned $1.48 earnings per share. The firm’s quarterly revenue was up 8.5% compared to the same quarter last year. PepsiCo has set its FY 2026 guidance at 8.465-8.628 EPS. As a group, analysts expect that PepsiCo will post 8.63 earnings per share for the current year.

Analyst Ratings Changes

Several equities analysts have recently weighed in on PEP shares. UBS Group reduced their price target on PepsiCo from $190.00 to $186.00 and set a “buy” rating for the company in a report on Tuesday, April 7th. Deutsche Bank Aktiengesellschaft raised their price target on PepsiCo from $169.00 to $173.00 and gave the company a “buy” rating in a report on Friday, April 17th. HSBC raised their price target on PepsiCo from $175.00 to $176.00 and gave the company a “hold” rating in a report on Friday, April 17th. Rothschild & Co Redburn raised their price target on PepsiCo from $120.00 to $130.00 and gave the company a “sell” rating in a report on Tuesday, February 10th. Finally, Evercore lifted their price objective on PepsiCo from $165.00 to $170.00 in a report on Friday, April 17th. Eight investment analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and a consensus target price 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.