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PURCHASE, N.Y. - PepsiCo, Inc. (NASDAQ: PEP), a leading global food and beverage company with a market capitalization of $179 billion, announced today a 5 percent increase in its quarterly dividend. The new dividend rate is $1.4225 per share of common stock, marking a rise from the previous $1.35 per share. This increment aligns with the company’s plan to elevate its annualized dividend to $5.69 per share from $5.42, starting with the dividend payable on June 30, 2025. The current dividend yield stands at an attractive 4.11%, according to InvestingPro data.
Shareholders on record as of the close of business on June 6, 2025, will be eligible for the upcoming dividend payment. The company has a long-standing history of providing quarterly cash dividends since 1965, and this year represents the 53rd successive annual increase in its dividend. InvestingPro analysis reveals PepsiCo has maintained consistent dividend payments for 55 consecutive years, demonstrating remarkable financial stability.
PepsiCo’s financial performance has been robust, with nearly $92 billion in net revenue in 2024, supported by an impressive gross profit margin of 55.07%. The company’s success is attributed to its diverse portfolio of beverages and convenient foods, including popular brands like Lay’s, Doritos, Cheetos, Gatorade, Pepsi-Cola, Mountain Dew, Quaker, and SodaStream. Many of these brands generate over $1 billion each in estimated annual retail sales. Trading at a P/E ratio of 19.13, InvestingPro analysis suggests the stock is currently trading near its 52-week low, potentially presenting an opportunity for value investors.
The company’s vision, outlined as "Be the Global Leader in Beverages and Convenient Foods by Winning with pep+," emphasizes a strategic transformation focusing on sustainability and human capital. PepsiCo aims to drive value and growth while adhering to environmental limits and fostering positive societal change. For a comprehensive analysis of PepsiCo’s strategic initiatives and financial health, investors can access detailed Pro Research Reports available on InvestingPro, which covers over 1,400 top US stocks.
This dividend announcement is a part of PepsiCo’s financial strategy, reflecting its commitment to delivering shareholder value. The increase is based on the company’s current financial position and future outlook, although it is important to note that forward-looking statements are subject to risks and uncertainties. Investors are advised to consult PepsiCo’s filings with the Securities and Exchange Commission for a more comprehensive understanding of potential risks.
The information for this article is based on a press release statement from PepsiCo, Inc.
In other recent news, PepsiCo reported its first-quarter 2025 earnings, revealing earnings per share (EPS) of $1.48, which fell short of the analyst forecast of $1.51. However, the company’s revenue exceeded expectations, reaching $17.92 billion against the projected $17.78 billion. Despite the revenue beat, PepsiCo adjusted its full-year guidance due to new tariffs and macroeconomic uncertainties. The company’s Frito-Lay North America segment continued to underperform, affecting overall growth and prompting a strategic focus on value investments and operational excellence. Evercore ISI recently revised PepsiCo’s stock price target from $155 to $140, maintaining an In Line rating, citing challenges in the company’s financial guidance and uncertainties in forecasts. The report highlighted ongoing issues such as tariffs, foreign exchange fluctuations, and increased interest expenses that are impacting PepsiCo’s performance. Additionally, the weak consumer environment and health initiatives were noted as factors likely to continue affecting investor sentiment. Despite these challenges, PepsiCo remains committed to its productivity initiatives, which are expected to support earnings per share growth in the coming years.
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