PepsiCo (NASDAQ: PEP) sends its next quarterly dividend of $1.48 per share to shareholders on September 30, 2026, the latest payment in an increase streak that has now run 54 consecutive years. At the September 9 close of $136.69, the payout yields 4.3%.
The setup for PepsiCo’s September payment
The ex-dividend date passed on September 4, so new buyers must wait for the next declaration to capture a payment. The September 30 distribution totals roughly $2.02 billion across all shareholders, one of the largest single dividend payments in the U.S. market this month.
The $1.48 rate represents a 4% increase over the prior year. PepsiCo lifted the payout earlier in 2026, extending an annual raise streak that reaches back to 1973 and keeps the company firmly among the Dividend Kings.
Key numbers for PEP income investors
| Metric | Value |
|---|---|
| Quarterly dividend | $1.48 per share |
| Annualized rate | $5.92 per share |
| Yield at Sept. 9 close ($136.69) | 4.3% |
| September payment date | September 30, 2026 |
| Ex-dividend date | September 4, 2026 |
| Total September payout | about $2.02 billion |
| Consecutive annual increases | 54 years |
| Income per $100,000 invested | about $4,330 |
A $100,000 position at recent prices buys roughly 732 shares and generates about $4,330 in annual dividend income. That trails the yields on many energy and REIT names, but it comes from a consumer staples giant with a half-century of payout discipline.
How PEP’s yield compares with other Dividend Kings
| Company | Annualized dividend | Yield at Sept. 9 | Streak |
|---|---|---|---|
| PepsiCo (PEP) | $5.92 | 4.3% | 54 years |
| Coca-Cola (KO) | $2.12 | 2.4% | 64 years |
| Johnson & Johnson (JNJ) | $5.36 | 2.0% | 64 years |
| Altria (MO) | $4.44 | 6.4% | 57 years |
PEP now yields more than double Coca-Cola and Johnson & Johnson after a difficult stretch for the shares. Coca-Cola raised its payout 4% in February to $0.53 quarterly. Johnson & Johnson lifted its dividend 3.1% in April to $1.34 quarterly. Altria, the tobacco giant, pays the highest yield in the group at 6.4% after its own 4.7% increase in August.
What to watch
The stock closed September 9 at $136.69, about 20% below its 52-week high of $171.48. That drawdown is why the yield sits at 4.3% rather than the 3% area long associated with the name. Weak volume growth and margin pressure in North American snacks drove the slide.
Income investors should watch two signals into the October earnings report. First, whether free cash flow continues to cover the $5.92 annual payout with room to spare. Second, whether the pace of dividend growth holds near 4% rather than slowing toward the 2% range, which would signal a defensive posture.
Common mistakes income investors make with yield spikes
Chasing a yield that rose because the price fell, without asking why the price fell, is the classic error. A second is overconcentrating in a single staples name because its yield now beats bonds. A third is assuming a 54-year streak makes the payout permanent. Streaks end when cash flow breaks, not when history feels protective.
Bottom line
The September 30 payment is routine, the streak is exceptional, and the 4.3% yield is unusually rich for PepsiCo. Buyers who accept flat-to-slow earnings growth are being paid fairly to wait. Those needing growth should look elsewhere.
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