On Tuesday, February 3, 2026, the Board of Directors of PepsiCo, Inc. (PEP) announced an annual dividend increase from $5.42 to $5.92 per share, effective with the dividend expected to be paid in June 2026. This represents a 4.23% increase over the prior annual dividend and marks the company’s 54th consecutive annual dividend increase.
In addition to the dividend hike, PepsiCo also announced a new share repurchase program, authorizing the repurchase of up to $10 billion of PepsiCo common stock through February 28, 2030, further reinforcing management’s commitment to shareholder returns.
Current Dividend Yield and Income Impact
At February 6th closing price of $170.49, this increase raises PepsiCo’s forward dividend yield to approximately 3.47%, which remains attractive for a high-quality consumer staples company.
As an owner of 100 shares of PepsiCo, the recent dividend increase adds $17.88 to my projected annual net dividend income. My expectations going into this announcement were fairly modest—around 3%—so this increase was a pleasant surprise.
Long-Term Dividend Growth Record
PepsiCo is a Dividend Champion, with an extraordinary 53-year streak of dividend increases. According to the Dividend Champions list, PepsiCo’s dividend growth rates are as follows:
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1-year: 6.0%
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3-year: 7.7%
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5-year: 7.0%
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10-year: 7.4%
This dividend increase represents the 12th consecutive raise I’ve received from PepsiCo since I acquired my first shares in February 2014. Over that time, the quarterly dividend has grown steadily from $0.66 to $1.48 per share, representing a 124.2% increase, which nicely aligns with my long-term expectations.
At the moment of writing, PEP accounts for approximately 1.72% of my portfolio and contributes about 1.87% of my projected annual dividend income. Following this increase, my yield on cost stands at an impressive 7.60%.
Final Thoughts
PepsiCo once again proves why it remains one of the cornerstone holdings in my dividend growth portfolio. While dividend growth has moderated slightly compared to earlier decades, the combination of consistency, brand strength, pricing power, and shareholder-friendly capital allocation continues to make PEP a reliable long-term income compounder.
Summary of 2026 Dividend Increases / Cuts
Full Disclosure: Long PEP
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