How much to invest in Pepsi for $1,000 in annual dividends (2026)

Core Viewpoint - PepsiCo has maintained uninterrupted dividend payments for over 50 years, making it a reliable income generator for investors seeking steady cash flow [1] Group 1: Financial Performance - As of January 16, PepsiCo trades at $146.60 per share with an annual dividend of $5.69, resulting in a yield of approximately 3.9%, significantly higher than the S&P 500's yield of 1.13% [1] - To earn $1,000 in annual dividends from PepsiCo, an investment of about $25,800 is required to own approximately 176 shares at the current price [2] Group 2: Growth Challenges - PepsiCo acknowledges a serious growth problem, particularly in its North America food business, which includes Frito-Lay, facing volume declines and margin pressure [3] - Recent quarters have shown volume declines for Frito-Lay North America as the company moved away from deep promotional strategies and encountered service-level issues due to system transitions [4] Group 3: Management Changes - In November 2025, PepsiCo appointed Steve Schmitt as the new CFO, marking a shift from the company's usual practice of promoting from within [5] - Schmitt's background in finance across various industries is seen as a fresh perspective for the company [6] - The company has set ambitious targets for 2026, issuing preliminary expectations in early December rather than waiting for the traditional February guidance period [6][7] Group 4: Strategic Initiatives - PepsiCo's transformation plan focuses on three key moves, with significant investments aimed at enhancing affordability, particularly in Frito-Lay North America [9]