PepsiCo raises dividend again to extend legendary streak

Core Insights - PepsiCo has announced a 4% dividend increase, marking its 54th consecutive year of raising dividends, establishing it as a reliable income source for investors [1][6] - The company is projected to grow its free cash flow from $7.67 billion in 2025 to $14.88 billion by 2030, indicating a compounded annual growth rate (CAGR) of nearly 15% [2] - Analysts expect the annual dividend per share to rise from approximately $5.69 in 2026 to $7.11 in 2030 [3] Financial Performance - PepsiCo's Q4 2025 results exceeded analyst expectations, with revenue reported at $29.34 billion compared to estimates of $28.97 billion, and earnings per share (EPS) at $2.26 versus estimates of $2.24 [4][8] - Despite beating estimates, global food volume fell by 2% in Q4, indicating challenges in actual demand amid a sluggish macroeconomic environment [7] Dividend Metrics - The most recent dividend increase was 4%, with an approximate annual dividend per share of $5.69 and a dividend yield of around 3.4% based on a share price near $168 [6] - The 20-year dividend growth rate (CAGR) stands at approximately 8%, with a free cash flow conversion target of over 90% by 2027 [6]