Thursday, February 6, 2025

Dividend Increase - PepsiCo, Inc. (PEP)



 

On Tuesday, February 4th the Board of Directors of PepsiCo, Inc. (PEP) announced a 4.98% increase in its annualized dividend to $5.69 per share from $5.42 per share, effective with the dividend expected to be paid in June 2025. This represents the Company’s 53rd consecutive annual dividend per share increase.


At the current price of $146.26 (today's open), this increase will raise PepsiCo's dividend yield to 3.89%.



PepsiCo, Inc. is a Dividend Champions with a 53 year streak of dividend increases. Dividend growth rates for 1, 3, 5 and 10 years are 8.5, 7.7, 6.8 and 7.9 (Dividend Champions.xls)




As an owner of 100 shares of PEP, the recent dividend increase adds $20.12 to my projected annual net dividend income.


This increase was in line with my expectations, which were around 5%, so I welcome this announcement.


This recent dividend increase marks the 11th consecutive raise I’ve received from PepsiCo since I acquired my shares in February 2014. Over this time, the quarterly dividend has grown as expected from $0.66 to $1.4225 per share, representing a 115.5% increase.


Following this increase, my yield on cost is 7.31%.



Summary of 2025 Dividend Increases / Cuts



Click here to see my portfolio holdings.


You can follow the development of my dividends here.


Full Disclosure: Long PEP


Thanks for stopping by!


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