Dividend Aristocrat Pepsi Gives Another Dividend Increase

PepsiCo [[PEP]] announced today that the company will increase their quarterly dividend by 7% to $.515 per share.


Pepsi is a member of the elite group of dividend aristocrat stocks that have increased their dividends for at 25 consecutive years. In Pepsi’s case, this marks the 39th consecutive year that the beverage company has raised their dividend.


Following the dividend increase, Pepsi stock will offer investors a 3.0% current dividend yield based on yesterday’s closing price. Pepsi now will offer a higher dividend yield than their major competitors. Coca-Cola raised their dividend for the 49th consecutive year in February and currently offers a 2.8% dividend yield. Dr. Pepper Snapple has been getting serious about dividends lately, but currently yields only 2.5%.


PepsiCo Chairman and CEO Indra Nooyi, commented on the dividend increase, “PepsiCo has a long and consistent track record of delivering strong operating results and achieving top-tier financial performance. The Board’s decision to once again raise the annual dividend reflects our confidence in both the near- and long-term growth of our business as well as our ongoing commitment to delivering strong cash returns to shareholders.  Since the beginning of 2001, we have returned over $48 billion to shareholders in the form of dividends and share repurchases.”


Pepsi shares have gained 6.5% since the beginning of 2011, but are up nearly 10% since mid-March.


The Pepsi dividend will be payable on June 30, 2011 to shareholders of record as of June 3, 2011.

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