PepsiCo is a large comglomerate beverage company. Its products include Doritos, Tostitos, Lays, and Cheetos cheese-flavored snacks, branded dips. As well as Quaker oatmeal, grits, granola, and Aunt Jemima mixes and syrups. Its Beverages segment offers Pepsi, Gatorade, Mountain Dew, Diet Pepsi, Aquafina, Tropicana Pure Premium, and tea and coffee, and juices. The company was founded in 1898 and is headquartered in Purchase, New York.
PepsiCo has maintained a three-year growth rate of dividends of 7.8 percent. PepsiCo currently ranks 3rd in dividend yield within the large cap consumer goods, processed & packaged foods category. The quarterly dividend for the June payment will be $0.805 versus the prior year rate of $0.753 per share. PepsiCo is a member of our Top 100 Dividend Stocks. (see below).
The dividend will be paid at the new higher rate on June 30, 2017, to shareholders of record at close of business on June 2, 2017. PepsiCo Inc. is currently priced at $112.91. Listed in the table below are the quarterly dividend payments since 2010.
Analysis of PepsiCo is based upon our five key criteria for the Top 100 list, which include;
|Dividend Growth (3-7 year avg)||7.7||360|
|S&P Financial Rating||A+||232|
|% Yield||3 Year Div. Growth Rate||7 Year Div. Growth Rate||SPS 2017||P/S Ratio||10 yr P/S Low||10 yr P/S High||5 yr low Yield %||5 yr max Yield %|
- PepsiCo maintains an investment grade rating of A+.
- PepsiCo’s current dividend yield (2.85%) is above its five-year average historical dividend yield.
- PepsiCo maintains a beta of 0.75, lower than the average company.
- PepsiCo’s dividend yield is above that of the S&P 500 Index.
- PepsiCo has paid out a dividend consecutively for the past 45 years.
- PepsiCo is trading just above its ten-year average price/sales (P/S) ratio.
|Earnings per Share||4.85||4.66||4.27||4.37||3.92|
|Earnings per Share 2017 (projected)||5.1|
Based on the firm’s financial credit rating, consistent dividend growth and low beta, PepsiCo Inc. qualifies as one of our Top 100 Dividend Stocks.
Chart Explanation: Dividend growth stocks may be viewed undervalued when the current yield is above historical readings for the past 5 years.