PepsiCo’s stock decline pushes its dividend yield to 4.2%, approaching a historic high amid 54 years of consecutive payout increases.
PepsiCo (NASDAQ: PEP) shares have fallen 28% from their early 2023 peak and 17% below their 52-week high, contrasting with rival Coca-Cola’s recent record levels. The decline has elevated PepsiCo’s dividend yield to 4.2%, nearing last year’s historic high.
The company’s May dividend increase marked its 54th consecutive annual hike, securing its status as one of 57 Dividend Kings. PepsiCo trades at 16 times forward earnings, a discount to broader market valuations, despite guidance for modest revenue and earnings growth this year.
PepsiCo’s portfolio, including Frito-Lay, Gatorade, and Quaker Oats, positions it as a defensive play in a high-valuation market. Only six Dividend Kings currently yield more than 4%, underscoring its income appeal.