PepsiCo Raises Quarterly Dividend to $1.48 a Share

PepsiCo, Inc. (PEP) raised its quarterly dividend to $1.48 a share from $1.423, a 4.01% increase, with the shares trading ex-dividend on June 5, 2026.

The new payout implies an annual dividend of $5.92 a share. Based on a share price of $142.78, the forward annual yield is 4.15%. PepsiCo’s market capitalization was $195.17 billion.

The increase extends PepsiCo’s dividend growth streak to 53 consecutive years, keeping the company among the longest-running dividend growers in the consumer defensive sector. SmarterDividends assigns PepsiCo a dividend safety score of 81 out of 100, equivalent to an A grade.

Business Context

PepsiCo is a global food and beverage company with a portfolio that includes Pepsi, Gatorade, Lay’s, Doritos, Cheetos, Quaker and other major brands. The company’s dividend record has been supported by a business mix spanning snacks, beverages and international markets.

Recent operating context has been less straightforward. In its latest reported results, PepsiCo pointed to improving revenue momentum and productivity savings, while maintaining a measured outlook for growth, according to Barron’s coverage of the company’s fourth-quarter 2025 results. The same report said PepsiCo was working on affordability, productivity and innovation initiatives as it sought to improve North American performance.

PepsiCo has also been trying to reaccelerate demand in snacks after a slowdown in the category. Axios reported in 2025 that management viewed stabilizing snacks as a priority, with consumer budgets and health-and-wellness preferences shaping demand. That backdrop helps explain why the dividend increase is notable: it comes while the company continues to manage pressure in parts of its North American portfolio, rather than during an across-the-board expansion.

What It Means For Income Investors

For income investors, the practical change is a higher recurring cash payout: $1.48 per share each quarter, or $5.92 per share annually. The 4.15% forward yield gives PepsiCo a larger income component than many large-cap consumer staples peers, while the 53-year growth streak underscores management’s long-running commitment to returning cash through dividends.

The dividend safety score of 81 and A grade indicate a strong dividend profile, but the increase should still be viewed alongside the company’s operating environment. PepsiCo’s payout is backed by a broad portfolio and a long dividend history, while recent commentary points to continued work on volumes, pricing, productivity and portfolio positioning.