PepsiCo, Inc. (NASDAQ:PEP) Announces Quarterly Dividend of $1.42

PepsiCo, Inc. (NASDAQ:PEP) declared a quarterly dividend on Tuesday, May 6th, RTT News reports. Stockholders of record on Friday, June 6th will be given a dividend of 1.4225 per share on Monday, June 30th. This represents a $5.69 dividend on an annualized basis and a dividend yield of 4.32%. The ex-dividend date is Friday, June 6th. This is a 5.0% increase from PepsiCo’s previous quarterly dividend of $1.36.

PepsiCo has increased its dividend by an average of 7.9% per year over the last three years and has increased its dividend annually for the last 54 consecutive years. PepsiCo has a dividend payout ratio of 68.1% indicating that its dividend is sufficiently covered by earnings. Equities analysts expect PepsiCo to earn $8.84 per share next year, which means the company should continue to be able to cover its $5.69 annual dividend with an expected future payout ratio of 64.4%.

PepsiCo Trading Up 0.7%

Shares of PEP opened at $131.85 on Wednesday. The company has a debt-to-equity ratio of 2.05, a current ratio of 0.82 and a quick ratio of 0.65. The firm has a market capitalization of $180.78 billion, a price-to-earnings ratio of 18.97, a PEG ratio of 3.09 and a beta of 0.47. The company has a 50-day moving average of $137.27 and a 200 day moving average of $146.72. PepsiCo has a 1-year low of $127.75 and a 1-year high of $180.91.

PepsiCo (NASDAQ:PEP) last announced its quarterly earnings results on Thursday, April 24th. The company reported $1.48 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.49 by ($0.01). The firm had revenue of $17.92 billion during the quarter, compared to analysts’ expectations of $17.81 billion. PepsiCo had a net margin of 10.43% and a return on equity of 58.87%. The firm’s revenue for the quarter was down 1.8% on a year-over-year basis. During the same quarter in the previous year, the firm posted $1.61 EPS. On average, research analysts expect that PepsiCo will post 8.3 EPS for the current year.

Analyst Ratings Changes

Several brokerages have recently commented on PEP. UBS Group cut their price target on PepsiCo from $175.00 to $169.00 and set a “buy” rating on the stock in a research note on Friday, April 25th. Citigroup cut their target price on shares of PepsiCo from $170.00 to $160.00 and set a “buy” rating on the stock in a research report on Friday, April 25th. Jefferies Financial Group cut shares of PepsiCo from a “buy” rating to a “hold” rating and lowered their price target for the stock from $171.00 to $170.00 in a research report on Wednesday, March 12th. HSBC cut their price objective on shares of PepsiCo from $186.00 to $170.00 and set a “hold” rating on the stock in a report on Tuesday, February 4th. Finally, Morgan Stanley dropped their target price on PepsiCo from $168.00 to $153.00 and set an “equal weight” rating on the stock in a research report on Friday, April 25th. One equities research analyst has rated the stock with a sell rating, fifteen have given a hold rating and four have given a buy rating to the stock. According to MarketBeat, the stock presently has an average rating of “Hold” and a consensus price target of $160.69.

Institutional Inflows and Outflows

An institutional investor recently raised its position in PepsiCo stock. Brighton Jones LLC lifted its holdings in shares of PepsiCo, Inc. (NASDAQ:PEP) by 12.4% during the fourth quarter, according to its most recent disclosure with the SEC. The fund owned 59,392 shares of the company’s stock after acquiring an additional 6,574 shares during the period. Brighton Jones LLC’s holdings in PepsiCo were worth $9,031,000 at the end of the most recent quarter. Institutional investors own 73.07% of the company’s stock.

PepsiCo Company Profile

PepsiCo, Inc engages in the manufacture, marketing, distribution, and sale of various beverages and convenient foods worldwide. The company operates through seven segments: Frito-Lay North America; Quaker Foods North America; PepsiCo Beverages North America; Latin America; Europe; Africa, Middle East and South Asia; and Asia Pacific, Australia and New Zealand and China Region.