PURCHASE, N.Y. - PepsiCo, Inc. (NASDAQ: NASDAQ:PEP) announced today a 7% increase in its quarterly dividend, from the previous $1.27 to $1.355 per share of common stock. This move aligns with the company's earlier statements about boosting its annualized dividend to $5.42 per share from $5.06.
The upcoming dividend will be payable on June 28, 2024, to shareholders who are on record by the close of business on June 7, 2024.
The dividend increase is a continuation of PepsiCo's long-standing practice of returning value to shareholders. The company has consistently paid quarterly cash dividends since 1965, and this year's increment marks the 52nd consecutive annual rise in dividends.
PepsiCo's financial performance has shown resilience and growth over the years. In 2023, the company generated more than $91 billion in net revenue, attributable to its diverse portfolio of beverages and convenient foods. The company houses several leading brands such as Lay's, Doritos, Cheetos, Gatorade, Pepsi-Cola, Mountain Dew, Quaker, and SodaStream, many of which boast over $1 billion each in estimated annual retail sales.
The company's vision, encapsulated in its pep+ (PepsiCo Positive) strategy, emphasizes sustainability and human capital as core elements of its value creation and growth. This approach aims to operate within planetary boundaries while fostering positive change for the environment and society.
While this announcement reflects PepsiCo's current operational plans and future projections, it is important to note that forward-looking statements are subject to risks and uncertainties. Investors are advised to consult PepsiCo's filings with the Securities and Exchange Commission, including its annual and quarterly reports, for a more comprehensive understanding of factors that could affect the company's actual results.
Today's declaration is based on a press release statement from PepsiCo and does not reflect any additional analysis or opinion. The information provided is intended for investors seeking the latest developments related to PepsiCo's financial distributions.
InvestingPro Insights
Following the recent announcement of PepsiCo's dividend increase, the company's commitment to shareholder returns remains evident. InvestingPro Tips highlight that PepsiCo has not only raised its dividend for 51 consecutive years, but it also boasts impressive gross profit margins.
Specifically, the company's gross profit margin for the last twelve months as of Q1 2024 stands at a robust 54.15%. This financial strength is a testament to PepsiCo's solid market position and operational efficiency.
InvestingPro Data also sheds light on the company's valuation and performance metrics. PepsiCo's market capitalization is a formidable $241.84 billion, reflecting its scale and investor confidence. The Price/Earnings (P/E) ratio, a key indicator of market expectations, is currently at 23.9, adjusted for the last twelve months as of Q1 2024.
This figure suggests that PepsiCo is trading at a relatively moderate valuation in relation to its near-term earnings growth. Moreover, the company's dividend yield as of the last dividend ex-date stands at 2.87%, which is an attractive rate for income-focused investors.
For those looking to delve deeper into PepsiCo's financials, InvestingPro offers additional insights and analysis. There are 14 more InvestingPro Tips available, including the company's cash flow adequacy and debt management, which can be accessed at https://www.investing.com/pro/PEP. Investors interested in a comprehensive analysis can use the coupon code PRONEWS24 to receive an additional 10% off a yearly or biyearly Pro and Pro+ subscription, enriching their investment decision-making process with premium data and expert insights.
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