PepsiCo Dividend Yield and Return on Investment

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PepsiCo is a well-established company with a history of paying consistent dividends. The company's dividend yield has averaged around 2.5% over the past five years.

PepsiCo's dividend has been increasing over the years, with a 5-year dividend growth rate of 7.1%. This steady growth demonstrates the company's commitment to returning value to its shareholders.

The company's return on investment (ROI) has also been impressive, with an average ROI of 15.6% over the past five years. This indicates that PepsiCo's investments have been generating significant returns, which in turn supports the company's dividend payments.

Investors seeking a relatively stable dividend income stream may find PepsiCo's dividend yield appealing, especially considering the company's long history of paying dividends.

Dividend Yield

The dividend yield of PepsiCo, Inc. has fluctuated over the years, with a maximum annual dividend yield of 3.44% in 2024.

This represents a significant increase from the minimum annual decrease of -12.69% seen in 2019. The dividend yield has also shown a range of changes from year to year, with some years seeing increases and others seeing decreases.

Here's a breakdown of the dividend yield for PepsiCo, Inc. from 2015 to 2024:

History

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PepsiCo, Inc. has a long history of paying dividends, with an average payout of 7.79% over the past 12 months.

The company's dividend history is a strong indicator of its financial stability and growth prospects.

PepsiCo's dividend growth has been steady over the years, with an average payout of 7.86% over the past 36 months.

This is a testament to the company's ability to generate consistent cash flow and maintain a healthy dividend payout policy.

Over the past 60 months, PepsiCo's dividend growth has been slightly lower, averaging 7.04% per year.

However, the company's dividend growth over the past 120 months has been relatively consistent, averaging 7.73% per year.

Expand your knowledge: Payout Ratio vs Dividend Yield

Shareholder

Shareholder yield is a metric that measures the total return to shareholders through dividends, buybacks, and debt paydown.

It's a ratio that compares the cash returned to shareholders over a period of time to the market capitalization of the company.

PepsiCo's shareholder yield graph includes indicators for dividends, buybacks, and debt paydown, showing how each component contributes to the overall shareholder yield.

Consider shareholder yield in conjunction with other financial metrics like earnings, revenue, and debt levels to get a comprehensive understanding of a company's financial position.

This approach helps investors like you make informed decisions about a company's potential for future growth.

Check this out: Ally Financial Dividend

PepsiCo Average

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PepsiCo, Inc. (PEP) has a long history of dividend payments, with a current Dividend Yield that's less than its 3-year average.

The current Dividend Yield of PepsiCo, Inc. (PEP) is less than its 5-year average as well.

PepsiCo's 10-year historical average Dividend Yield is also higher than its current yield.

To get a sense of PepsiCo's dividend payments over time, take a look at the PEP dividend yield graph, which shows the company's dividend yield over the last 12 months.

PepsiCo Historical

PepsiCo has a rich history dating back to 1893 when Caleb Bradham created a new soft drink called "Brad's Drink" in North Carolina.

The company's name was later changed to Pepsi-Cola in 1898, a combination of the word "dyspepsia" and "cola."

Pepsi-Cola was initially sold for 5 cents a glass, making it an affordable alternative to other soft drinks of the time.

In 1965, PepsiCo merged with Frito-Lay, a leading manufacturer of snack foods, to become a major player in the food industry.

Today, PepsiCo is one of the largest food and beverage companies in the world, with a diverse portfolio of brands including Pepsi, Gatorade, and Tropicana.

Criteria Checks 4/6

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A company's dividend yield is a key factor in determining its attractiveness to investors.

PepsiCo is a great example of this, with a current yield of 3.66%.

A well-covered dividend is essential for long-term sustainability.

PepsiCo's dividend is well covered by its earnings, giving investors confidence in its ability to maintain its payout.

A company's ability to sustain its dividend over time is crucial for investors who rely on it for income.

Investors should look for companies with a history of consistent dividend payments and a sustainable payout ratio.

Readers also liked: Dividend Payout Ratio News

Performance

PepsiCo, Inc.'s Dividend Yield has fluctuated over the years, with a maximum annual yield of 3.44% in 2024, representing a 20.44% increase from the previous year.

The company's Dividend Yield has also experienced significant changes, with a minimum annual decrease of -12.69% in 2019. This highlights the importance of monitoring dividend yields to understand a company's financial performance and market dynamics.

Here are some key statistics on PepsiCo, Inc.'s Dividend Yield compared to its peers:

In terms of quarterly fluctuations, PepsiCo, Inc.'s Dividend Yield has shown significant changes, with a 20.44% increase in 2024 compared to the previous year.

Past Performance

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In the past ten years, PepsiCo's Dividend Yield has had its ups and downs. The mean historical Dividend Yield is a solid 2.81%.

The current Dividend Yield of 3.69% is a significant increase of 30.96% compared to the historical average. This is a notable change that investors should be aware of.

PepsiCo's Dividend Yield has fluctuated over the years, with a high of 0.93% in the March 2020 quarter. This is a stark contrast to the low of 0.62% in the June 2023 quarter.

The minimum Annual Dividend Yield has been as low as 2.48%.

PepsiCo's Excellent ROI

PepsiCo's return on investment (ROI) has been a major factor in its success. The company's ability to generate profits from its various business segments has been impressive.

In 2020, PepsiCo's net revenue was $70.3 billion, a 6% increase from the previous year. This growth is a testament to the company's effective management of its resources.

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PepsiCo's focus on innovation has paid off, with the company introducing new products and brands that have resonated with consumers. Its Gatorade brand, for example, has been a huge success, with sales reaching $3.5 billion in 2020.

The company's efficient supply chain management has also contributed to its high ROI. PepsiCo's ability to streamline its logistics and distribution has helped reduce costs and increase productivity.

PepsiCo's commitment to sustainability has also had a positive impact on its bottom line. The company's efforts to reduce its carbon footprint and increase its use of renewable energy have resulted in significant cost savings.

PepsiCo Raises Prices 5%

PepsiCo Raises Prices 5% is a significant move for the company.

PepsiCo, a snack food giant, is increasing its prices due to higher costs.

Younger investors often want to invest in stocks that offer dividends.

PepsiCo has recently raised its dividend by 5%.

Industry trends suggest that Consumer Products companies like PepsiCo may continue to raise prices.

This could impact consumer behavior and purchasing decisions.

As a consumer, it's essential to be aware of price changes and adjust your budget accordingly.

PepsiCo's price increase may lead to a shift in consumer spending habits.

Comparison

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PepsiCo's Dividend Yield is a key metric for investors to consider. It's essential to compare it to its peers to get a better understanding of the company's performance.

PepsiCo's Dividend Yield is less than Coca-Cola Consolidated, Inc. (0.41%), greater than Monster Beverage Corporation (0%), and greater than Celsius Holdings, Inc. (0%). This indicates that PepsiCo's dividend payout is relatively lower compared to some of its competitors.

The table below shows a comparison of PepsiCo's Dividend Yield with its peers:

Note that the Dividend Yield for PepsiCo is not explicitly stated in the article section, but it can be inferred from the comparison with its peers.

Pep's Performance Compared to Peers

PepsiCo, Inc.'s Dividend Yield is less than Coca-Cola Consolidated, Inc.'s 0.41% yield.

PepsiCo's Dividend Yield is greater than Monster Beverage Corporation's 0% yield and Celsius Holdings, Inc.'s 0% yield.

Keurig Dr Pepper Inc. has a significantly higher Dividend Yield of 2.79%, more than double PepsiCo's yield.

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The Coca-Cola Company has a Dividend Yield of 2.79%, matching PepsiCo's peer Keurig Dr Pepper Inc.

Here's a comparison of PepsiCo's Dividend Yield with its peers:

Primo Water Corporation stands out with the highest Dividend Yield of 4.51%, more than double PepsiCo's yield.

Vs Market

When comparing PEP's dividend yield to the market, we can see some interesting facts. PEP's dividend yield of 3.7% is higher than the bottom 25% of dividend payers in the US market, which is 1.4%.

PEP's dividend yield is also lower than the top 25% of dividend payers in the US market, which is 4.5%. This suggests that PEP's dividend yield is relatively average compared to the top performers in the market.

Here's a breakdown of PEP's dividend yield compared to the market:

It's worth noting that PEP's dividend yield is higher than the industry average for the Beverage sector, which is 3.2%.

Ratings and Returns

Pep's dividend yield is impressive, with a 3.72% forward dividend yield that ranks in the top 30%. This means you can expect a regular stream of income from your investment.

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The company has a long history of consecutive dividend increases, with 53 years of steady growth. This is a testament to Pep's commitment to returning value to its shareholders.

Pep's dividend growth has been particularly strong in recent years, with a 6% compound annual growth rate (CAGR) over the last three years, ranking in the top 40%.

A different take: Pep Kyc

Ratings - PEP

PEP has a remarkable history of consecutive dividend increases, with a staggering 53 years under its belt. This is a testament to the company's financial stability and commitment to its shareholders.

The forward dividend yield of 3.72% is nothing to sneeze at, placing PEP in the top 30% of its peers. This means that for every dollar invested, you can expect to earn a return of 3.72%.

A 6% dividend CAGR over the last 3 years is a impressive feat, ranking PEP in the top 40% of its competitors. This growth is a clear indication of the company's financial health and potential for future returns.

Investors seeking higher yields may find PEP's 7-9% yields appealing, although it's essential to carefully consider the associated risks.

Return

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Returning an item is often a straightforward process. You can initiate a return within 30 days of delivery, and most retailers will provide a prepaid return shipping label.

Some retailers, however, may have specific return policies, such as requiring a restocking fee or only accepting returns on certain items. For example, a retailer may not accept returns on personalized or custom-made items.

You should check the retailer's return policy before making a purchase to avoid any potential issues.

Key Information

The key information about PEP's dividend yield is pretty straightforward. The dividend yield is currently at 0.5%.

This yield is actually lower than some other investment options, but it's still worth considering. The total shareholder yield, which includes both dividends and share buybacks, is a more comprehensive measure and comes in at 4.1%.

Here are some key numbers to keep in mind:

The payout ratio is a bit high at 77%, which means the company is distributing a significant portion of its earnings to shareholders.

Frequently Asked Questions

How much does Pep pay per share?

Pep pays $5.42 per share in annual dividend. Learn more about their dividend policy and history.

How much does Pepsi pay out in dividends?

PepsiCo pays out $1.355 per share in dividends. This dividend payout is part of the company's quarterly dividend distribution.

What is the current yield of PepsiCo?

PepsiCo's current dividend yield is 3.56%, indicating the percentage of the stock price paid out as dividends to shareholders. This yield is relatively high compared to its sector and global peers.

Teresa Halvorson

Senior Writer

Teresa Halvorson is a skilled writer with a passion for financial journalism. Her expertise lies in breaking down complex topics into engaging, easy-to-understand content. With a keen eye for detail, Teresa has successfully covered a range of article categories, including currency exchange rates and foreign exchange rates.

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