PURCHASE, N.Y. - PepsiCo, Inc. (NASDAQ: NASDAQ:PEP) has announced an increase in its quarterly dividend, with the Board of Directors declaring a payment of $1.355 per share on the company's common stock, marking a 7% rise from the same period last year. The new dividend rate follows the company's previously disclosed hike in its annualized dividend to $5.42 from $5.06, which commenced with the June 2024 payment.
This upcoming dividend is scheduled for distribution on January 6, 2025, to shareholders who are recorded by the close of business on December 6, 2024. PepsiCo has a longstanding history of providing quarterly cash dividends, having done so consistently since 1965. The year 2024 represents the 52nd consecutive year of annual dividend increases for the company.
PepsiCo's financial performance has been robust, with net revenue surpassing $91 billion in 2023. The company's success is attributed to its diverse portfolio of beverages and convenient foods, including renowned brands like Lay's, Doritos, Cheetos, Gatorade, Pepsi-Cola, Mountain Dew, Quaker, and SodaStream. Many of these brands are significant contributors to the company's revenue, each generating over $1 billion in estimated annual retail sales.
The company's strategic vision, known as pep+ (PepsiCo Positive), is aimed at being the global leader in beverages and convenient foods. This strategy focuses on sustainability and human capital as core elements for creating value and growth, all while operating within the planet's boundaries and fostering positive change for both the environment and society.
Investors are advised to exercise caution regarding forward-looking statements in the company's press release, which are based on current information and projections about future events. These statements are subject to risks and uncertainties, and actual outcomes may differ materially from expectations. For more detailed risk factors, investors can refer to PepsiCo's filings with the Securities and Exchange Commission.
The information for this article is based on a press release statement from PepsiCo, Inc.
In other recent news, PepsiCo has been making strategic moves to enhance its sales forecasting through data sharing with major retailers, aiming to improve demand predictions and supply chain efficiency. The company has also been the subject of various analysts' notes, with Jefferies maintaining a Buy rating and HSBC (LON:HSBA) raising its price target, albeit retaining a Hold rating. PepsiCo's use of artificial intelligence to process large data sets is part of a broader industry trend, with other consumer goods companies also exploring AI to optimize their supply chains.
Meanwhile, Keurig Dr Pepper (NASDAQ:KDP) has announced its acquisition of a 60% stake in energy-drink maker Ghost for $990 million, marking a significant step in its expansion within the growing energy drinks market. This move is part of the company's strategy to diversify its beverage portfolio.
PepsiCo and Coca-Cola (NYSE:KO) bottlers in the West Bank are currently facing a critical shortage of cans and sugar due to the ongoing closure of a key Jordan border crossing. This situation has been compounded by high unemployment rates in the densely populated West Bank, which impacts local families' purchasing power.
Analysts' future expectations suggest that despite challenges, both PepsiCo and Keurig Dr Pepper are poised to navigate market conditions effectively. These recent developments underscore the companies' commitment to strategic growth and operational efficiency.
InvestingPro Insights
PepsiCo's recent dividend increase aligns with its impressive track record of shareholder returns. According to InvestingPro data, the company's dividend yield stands at 3.42%, with a dividend growth rate of 7.11% over the last twelve months. This consistent dividend growth is further underscored by an InvestingPro Tip, which highlights that PepsiCo has raised its dividend for 51 consecutive years, demonstrating a strong commitment to returning value to shareholders.
The company's financial health appears robust, with revenue reaching $91.92 billion in the last twelve months. PepsiCo's gross profit margin is notably strong at 54.88%, which is reflected in another InvestingPro Tip noting the company's "impressive gross profit margins." This financial strength supports PepsiCo's ability to maintain its dividend growth strategy.
Despite recent market volatility, PepsiCo's stock has shown resilience. An InvestingPro Tip suggests that the stock "generally trades with low price volatility," which may be attractive to investors seeking stability in their portfolio. Additionally, with the stock trading near its 52-week low, as indicated by another tip, there could be potential value for long-term investors aligned with PepsiCo's growth strategy and dividend policy.
For investors seeking a more comprehensive analysis, InvestingPro offers 14 additional tips on PepsiCo, providing deeper insights into the company's financial health and market position.
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