PEP/Consumer Defensive · Beverages - Non-Alcoholic/NASDAQ
Dividend Yield
4.17%
$5.80 · Annual Dividend
Dividend Safety Rating
PEP's dividend appears safe and well-supported. Strengths include a 10.1x interest coverage & 51.5% return on equity. Areas of concern: 84.1% fcf payout ratio & 0.9x current ratio. As a Dividend Aristocrat with 25+ consecutive years of increases, PEP has a proven commitment to shareholders.
Based on 15 of 15 metrics
Strengths
- Interest Coverage: 10.1xEarnings cover interest payments many times over.
- Return on Equity: 51.5%Strong return on equity reflects efficient profit generation.
- Gross Margin: 54.2%High gross margin signals strong pricing power.
Risks
- 5-Year Dividend CAGR: -4.3%Dividend growth has been weak or negative.
- FCF Payout Ratio: 84.1%Free cash flow is tight relative to the dividend.
- Current Ratio: 0.9xLimited short-term liquidity to meet obligations.
Payout & Coverage
CautionBalance Sheet
CautionProfitability
Very SafeDividend Track Record
SafeAbout PepsiCo, Inc.
PepsiCo, Inc. is a global leader in snacks and beverages, renowned for its portfolio of iconic household brands such as Pepsi, Mountain Dew, Gatorade, Lay’s, Cheetos, and Doritos. The company dominates the worldwide savory snacks market and holds the position of the second-largest beverage provider globally, trailing only Coca-Cola, with a diverse range encompassing carbonated soft drinks, water, sports drinks, and energy beverages. Convenience foods represent approximately 58% of its total revenue, complemented by beverages, while international markets contribute 40% to both sales and operating profits. PepsiCo owns substantial manufacturing and distribution capacity in the United States but partners with bottlers overseas for beverages. Employing over 306,000 people, it operates within the consumer defensive sector, specifically non-alcoholic beverages, underscoring its role as a large-value stock with significant market capitalization exceeding $233 billion. PepsiCo, Inc. plays a pivotal role in the global food and beverage industry through its emphasis on diversified products and robust international presence.
Dividend Overview
Dividend Yield
4.17%
Annual Dividend
$5.80
Frequency
Quarterly
Payout Ratio
75.33%
FCF Payout Ratio
84.13%
52-Week Range
$133.73 - $171.48
Dividend History (2016–2025)
PEP annual dividend per share and yield history
Earnings & Profitability
PEP earnings per share and net profit margin
Key Dates
Next Ex-Dividend Date
September 4, 2026
Next Payment Date
September 30, 2026
Dividend Growth
3-Year Dividend CAGR
7.51%
5-Year Dividend CAGR
-4.35%
10-Year Dividend CAGR
0.17%
3-Year Total Growth
24.25%
5-Year Total Growth
-19.95%
10-Year Total Growth
1.74%
Dividend Aristocrat (25+ yrs)
This company has increased its dividend for 25+ consecutive years.
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Frequently Asked Questions
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This page is not investment advice. The content is for informational purposes only and should not be construed as a recommendation to buy, sell, or hold any security. Always do your own research and consult a qualified financial advisor before making investment decisions.
Financial data, including dividend history, earnings, balance sheet metrics, and the Dividend Safety Rating, is provided for informational purposes only. Data may be delayed or differ from official filings. Past performance does not guarantee future results. Always verify with official sources before making investment decisions.
Market data provided by Twelve Data.