Pepsi currently distributes dividends four times a year. And it’s something they do year after year.
What is the current dividend for PepsiCo?
It’s July 15, 2021 and the New York City suburb of Purchase, New York, is the place to be. NASDAQ: PEP) today declared a quarterly dividend of $1.075 per share of PepsiCo common stock, an increase of 5% over the corresponding year-earlier period, as announced by the company’s board of directors.
Is PepsiCo a dividend aristocrat?
PepsiCo and Coca-Cola are both dividend aristocrats, but Coca-Cola is the more profitable of the two. On behalf of JR Research and Ultimate Growth Investing Marketplace, I’m Jere Ong, a principal analyst and the founder of both. Over the next five years, Ultimate Growth Investing is designed to help investors achieve 5x to 10x returns.
How long do I have to hold a stock to get dividends?
You must hold the shares for a minimum number of days in order to earn the preferable 15% dividend tax rate. Within the 121-day window surrounding the ex-dividend date, that minimal term is 61 days. At 60 days prior to the ex-dividend date, the 121-day period begins to run.
Should you invest in Coke or Pepsi?
Income investors have traditionally relied on KO stock as a part of their long-term portfolios. Known as “Dividend Aristocrats” for the last 56 years, it’s one of the most consistent dividend companies on the market and has raised its dividend every year for that time. As of this writing, its share price has risen by 61 percent over the past decade, which is considerably below the S&P 500’s return of 275 percent. However, its dividend growth and high yields (now 3.2 percent) help.
Pepsi, on the other hand, has a comparable record. It’s gained 146 percent in the last decade, has a dividend yield of 2.9 percent, and has increased its payout for 46 years in a row.
Both Pepsi and Coca-Cola are trailing the S&P 500 during the past few years, but Pepsi stock has risen 9% in the previous year and 7.8% over the past two years, while KO stock has actually fallen.
Dividend paying market stalwarts like Coke and Pepsi are popular choices for investors during times of market turmoil. Because of these two factors, Pepsi’s performance has been superior to that of Coca-Cola.
- Prices have dropped. the stock’s P/E ratio (26) is still lower than Coke’s, despite it beating KO over the past two years (28). Pepsi (2.8) has a lower price-to-sales ratio than Coke (3.2). (6.4).
- Growth in the dividends. Pepsi has increased its dividend by 9.8% annually over the last five years. During this period, Coca-Cola has only increased its payout by an average of 5.6% every year.
Pepsi recorded a 20 percent increase in sales and a 43 percent increase in profitability in the most recent quarter, whereas Coke saw a 5 percent increase in sales and a 19 percent decrease in earnings. Coke, on the other hand, is expected to expand by 15% this year, while Pepsi is expected to grow by just 9%, so there really isn’t much of a difference.
If you’re looking for growth, I wouldn’t invest in any of these companies. Tom Hutchinson, our dividend expert and chief analyst of Cabot Dividend Investor, recently shared this statistic with us: if you had invested $10,000 in Pepsi stock 10 years ago and reinvested the dividends, today you would have $28,815 not a bad return, despite the fact that Pepsi has (like Coca-Cola) underperformed the market during that time.
PEP Trending Better
Reinvesting dividends is a great way to increase your wealth. You should hold either KO or PEP in your retirement portfolio because of this. Buy one now and keep it for ten years, and even with modest annual share price increases, you might nearly treble (or better!) your money.
Pepsi may be a better investment than Coke right now based on recent relative performance, if I had to make a decision. However, you’ll probably be good with any option..
Is Coke or Pepsi Stock better for you, based on what you’ve tried?
Why is PepsiCo stock dropping?
After reporting solid fourth quarter 2020 results, PepsiCo fell to a three-month low. 2021 has seen a decline in the popularity of high-yielding and defensive plays. Since the end of December, the stock’s value has fallen by 9%. If the price falls below $120, it could be a low-risk long-term opportunity for investors.
Why is Pepsi stock so much higher than Coke?
PepsiCo Q4 report reveals a couple things right off the off. Primarily because of the sheer size of PepsiCo’s business, which dwarfs that of Coca- Cola’s. Secondly, PepsiCo’s sales climbed in the fourth quarter and in 2020, putting it ahead of Coke going into the next fiscal year. During the first three months of the year, Pepsico’s revenue grew 8.8%, while its annual revenue grew 4.8%.
