PepsiCo Inc. pays shareholders a quarterly dividend of $1.48 per share, producing an annualized yield of approximately 4.19 percent at the stock’s recent price near $141.16. The company’s most recent payment went out on June 30, 2026. PepsiCo ranks among the most reliable dividend payers in the consumer staples sector with decades of consecutive increases.
PepsiCo dividend snapshot
| Metric | Value |
|---|---|
| Quarterly Dividend | $1.48 per share |
| Annualized Dividend | $5.92 per share |
| Current Yield | ~4.19% |
| Stock Price (July 2026) | ~$141.16 |
| Recent Payment Date | June 30, 2026 |
| Sector | Consumer Staples |
Why PepsiCo appeals to dividend investors
PepsiCo operates a diversified portfolio of beverages and snack foods that generates consistent cash flow. Brands like Pepsi, Lay’s, Gatorade, and Quaker Oats hold dominant market positions. This stability supports a dividend that has grown annually for decades.
The 4.19 percent yield compares favorably to the S&P 500 average yield of roughly 1.3 percent. A retiree with $100,000 invested in PepsiCo would receive approximately $4,190 in annual dividend income. That income stream can supplement Social Security and other retirement cash flows.
Income comparison per $100,000 invested
| Stock | Annual Dividend | Yield | Income per 100K |
|---|---|---|---|
| PepsiCo | $5.92 | ~4.19% | ~$4,190 |
| Coca-Cola | $1.94 | ~3.1% | ~$3,100 |
| S&P 500 (avg) | — | ~1.3% | ~$1,300 |
Earnings and cash flow context
PepsiCo’s recent quarterly earnings results reflected steady demand across both beverage and snack categories. The company’s pricing power allows it to pass through input cost inflation without severe volume erosion. Management continues to target margin expansion through productivity initiatives.
Free cash flow generation remains the key metric for dividend sustainability. PepsiCo has historically converted a high percentage of net income into free cash flow. This conversion rate supports not only the current dividend but also ongoing share repurchases that boost earnings per share.
Analyst outlook and price targets
Morgan Stanley analyst Dara Mohsenian maintains an overweight rating on PepsiCo with a price target of $165 per share. She expects margin improvement from pricing actions and productivity savings through the second half of 2026. Mohsenian notes that PepsiCo’s snack business provides more stability than beverage-focused peers during economic uncertainty.
Goldman Sachs analyst Bonnie Herzog estimates that PepsiCo’s organic revenue growth will remain in the mid-single digits for fiscal year 2026. She highlights the company’s ability to expand gross margins despite inflationary cost pressures. Herzog maintains a buy rating with a $160 target.
| Metric | PepsiCo | Coca-Cola | Mondelez |
|---|---|---|---|
| Annual Dividend | $5.92 | $1.94 | $1.88 |
| Yield | ~4.19% | ~3.1% | ~2.5% |
| Consecutive Increases | 52+ years | 63 years | 11 years |
| 5-Year CAGR | ~5.5% | ~3.2% | ~7.0% |
Risks to watch
Consumer staples face pressure from private-label competition and changing consumer preferences toward healthier options. PepsiCo has invested in healthier snack and beverage alternatives, but these transitions take time and capital. Growth rates in developed markets have slowed.
The stock trades at a premium valuation relative to some peers. At $141 per share, the price-to-earnings ratio sits above historical averages. Investors paying today’s price may experience limited capital appreciation if valuation multiples contract.
Bottom line
PepsiCo offers a solid dividend yield backed by durable brands and strong cash flow generation. The stock fits conservative portfolios seeking consumer staples exposure with income. Investors should monitor volume trends and valuation but can take confidence from the company’s multi-decade dividend growth record.
For more on dividend income ideas, see AT&T Dividend Yield Holds Above 5 Percent as Telecom Giant Maintains Annual Payout, Target Corporation Dividend Increase Offers 3.5 Percent Yield for Income Investors, and Coca-Cola Dividend Streak Reaches 63 Years as KO Yield Tops Treasury Returns for Income Investors.
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