Food and beverage major PepsiCo, Inc. (NASDAQ: PEP) recently announced a quarterly dividend of $1.15 per share, an increase of more than 7% from the previous dividend of $1.075 per share.
Pick the best stocks and maximize your portfolio:
- Discover top-rated stocks from highly ranked analysts with Analyst Top Stocks!
- Easily identify outperforming stocks and invest smarter with Top Smart Score Stocks
The dividend will be paid on June 30, 2022, to shareholders of record as of June 3, 2022.
Following the news, shares of the company rose marginally to close at $168 in Tuesday’s extended trading session.
Based on Tuesday’s closing price, the company’s annual dividend of $4.6 per share now reflects a dividend yield of 2.7%.
Notably, the company has been raising its quarterly dividend consistently over the past several decades, making it an attractive choice for investors.
Stock Rating
Recently, Evercore ISI analyst Robert Ottenstein assigned a Hold rating on the stock. The analyst, however, raised the price target to $185 from $175, which implies upside potential of 10.1% from current levels.
The Wall Street community is cautiously optimistic about the stock and has a Moderate Buy consensus rating based on seven Buys, six Holds and 1 Sell. PepsiCo’s average price target of $180.38 implies that the stock has upside potential of 7.4% from current levels. Shares have gained 16.7% over the past year.
Positive Sentiments
The TipRanks’ Hedge Fund Trading Activity tool shows that hedge fund confidence in Pepsi is currently Positive. Moreover, the cumulative change in holdings across all 33 hedge funds that were active in the last quarter was an increase of 227,100 shares.
Conclusion
At a time when the global economic landscape is adversely impacted by uncertainties, the latest dividend hike by the company is expected to boost investors’ confidence in the stock.
Download the TipRanks mobile app now
To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.
Read full Disclaimer & Disclosure
Related News:
Onsemi Stock Rallies on Upbeat Q1 Results
Avis Budget Drives to Strong Q1 Results
Spirit Airlines Flies High with Frontier, JetBlue Deal Nosedives
