PepsiCo, Inc. (NASDAQ:PEP) Raises Dividend to $1.42 Per Share

PepsiCo, Inc. (NASDAQ:PEP) declared a quarterly dividend on Tuesday, May 6th, RTT News reports. Investors of record on Friday, June 6th will be given a dividend of 1.4225 per share on Monday, June 30th. This represents a $5.69 dividend on an annualized basis and a yield of 4.31%. The ex-dividend date of this dividend is Friday, June 6th. This is a 5.0% increase from PepsiCo’s previous quarterly dividend of $1.36.

PepsiCo has raised its dividend by an average of 7.9% per year over the last three years and has increased its dividend every year for the last 53 years. PepsiCo has a payout ratio of 64.5% meaning its dividend is sufficiently covered by earnings. Equities research analysts expect PepsiCo to earn $8.84 per share next year, which means the company should continue to be able to cover its $5.42 annual dividend with an expected future payout ratio of 61.3%.

PepsiCo Price Performance

Shares of NASDAQ PEP opened at $131.91 on Thursday. The company has a debt-to-equity ratio of 2.05, a current ratio of 0.82 and a quick ratio of 0.65. The firm’s 50 day simple moving average is $144.69 and its 200-day simple moving average is $151.64. PepsiCo has a 12 month low of $130.16 and a 12 month high of $183.41. The stock has a market capitalization of $180.85 billion, a price-to-earnings ratio of 18.98, a PEG ratio of 3.09 and a beta of 0.47.

PepsiCo (NASDAQ:PEP) last announced its earnings results on Thursday, April 24th. The company reported $1.48 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.49 by ($0.01). The business had revenue of $17.92 billion for the quarter, compared to analysts’ expectations of $17.81 billion. PepsiCo had a net margin of 10.43% and a return on equity of 58.87%. The company’s quarterly revenue was down 1.8% on a year-over-year basis. During the same quarter last year, the business earned $1.61 EPS. Analysts expect that PepsiCo will post 8.3 EPS for the current year.

Hedge Funds Weigh In On PepsiCo

An institutional investor recently raised its position in PepsiCo stock. Brighton Jones LLC grew its stake in PepsiCo, Inc. (NASDAQ:PEP) by 12.4% in the 4th quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The institutional investor owned 59,392 shares of the company’s stock after buying an additional 6,574 shares during the period. Brighton Jones LLC’s holdings in PepsiCo were worth $9,031,000 at the end of the most recent reporting period. Institutional investors and hedge funds own 73.07% of the company’s stock.

Wall Street Analysts Forecast Growth

PEP has been the topic of several research reports. Morgan Stanley decreased their target price on PepsiCo from $168.00 to $153.00 and set an “equal weight” rating on the stock in a research report on Friday, April 25th. Bank of America decreased their price target on shares of PepsiCo from $155.00 to $150.00 and set a “neutral” rating on the stock in a research note on Friday, April 25th. CICC Research reissued a “market perform” rating on shares of PepsiCo in a research note on Friday, February 7th. HSBC dropped their price target on PepsiCo from $186.00 to $170.00 and set a “hold” rating for the company in a research report on Tuesday, February 4th. Finally, Barclays cut their price objective on shares of PepsiCo from $143.00 to $135.00 and set an “equal weight” rating for the company in a research report on Monday, April 28th. One investment analyst has rated the stock with a sell rating, fourteen have assigned a hold rating and four have issued a buy rating to the stock. According to data from MarketBeat, PepsiCo has an average rating of “Hold” and an average price target of $160.69.

PepsiCo Company Profile

PepsiCo, Inc engages in the manufacture, marketing, distribution, and sale of various beverages and convenient foods worldwide. The company operates through seven segments: Frito-Lay North America; Quaker Foods North America; PepsiCo Beverages North America; Latin America; Europe; Africa, Middle East and South Asia; and Asia Pacific, Australia and New Zealand and China Region.