Pepsico Inc (PEP) Dividend Analysis
Comprehensive dividend yield, safety, growth, and income analysis for PEP.
Pepsico Inc (PEP) pays an attractive 4.20% dividend yield, or $5.92 per share annually at a stock price of $140.79. 52 consecutive years of dividend increases — qualifying as a Dividend King (50+ years). The payout ratio of 75% is moderate. The dividend is currently covered by earnings but leaves less room for growth. Earnings cover the dividend 1.3x. Dividend growth has been steady, with a 3-year CAGR of 6.8% and a 5-year CAGR of 6.8% (10-year: 7.2%). The most recent ex-dividend date was September 4, 2026.
Dividend Overview
Pepsico Inc (PEP) pays an attractive 4.20% dividend yield, or $5.92 per share annually at a stock price of $140.79. PEP has increased its dividend for 52 consecutive years.
Dividend Safety
The payout ratio of 75% is moderate. The dividend is currently covered by earnings but leaves less room for growth.
DRIP Projection
$10,000 invested in PEP with dividends reinvested would grow to approximately $17,476 after 10 years, generating roughly $1,415/year in dividend income. This projection assumes the current 4.20% yield and a 6.8% annual dividend growth rate with all dividends reinvested.
| Year | Portfolio Value | Annual Income | Total Return |
|---|---|---|---|
| Year 1 | $10,420 | $468 | +4% |
| Year 5 | $12,650 | $738 | +26% |
| Year 10 | $17,476 | $1,415 | +75% |
| Year 15 | $27,218 | $3,057 | +172% |
| Year 20 | $49,824 | $7,766 | +398% |
Assumes constant share price and reinvestment at current price. Actual results will vary. Try our DRIP Calculator for a customized projection with real historical data.
Payment Schedule
You must own shares before the ex-dividend date to receive the upcoming payment. Payment typically arrives 2-4 weeks after the ex-date.
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