Investing in quality dividend stocks is a great way to generate a reliable passive income stream. Few companies have demonstrated the durability of their dividends over the past few decades better than others Dividend King. These companies increased their dividend payments by at least 50% for many years.
Global beverage and snack giant Pepsi (NASDAQ:PEP) Recently extended its dividend growth streak to 54 consecutive years, maintaining its position among an elite group Dividend King. Its yield is now close to 3.5%, nearly three times what it was last year S&P 500 IndexThe level is 1.2%, Pepsi can help satisfy your desire for a bankable passive income stream.
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PepsiCo recently announced dividend payments for the next two quarters. The company’s March payment rate will be the same as last quarter, but up 5% from a year ago. Meanwhile, June payments increased 4% compared to current levels. This marks the company’s 54th consecutive annual dividend increase. PepsiCo has paid quarterly dividends since 1965.
The company can easily afford higher dividend levels. Last year, PepsiCo generated nearly $12.1 billion in operating cash flow, including capital expenditures ($4.4 billion) and dividend payments ($7.6 billion). The company also bought back $1 billion worth of stock last year. The company ended the year with about $9.5 billion in cash on its balance sheet, which supports its strong A+ credit rating.
PepsiCo expects to return more cash to investors in 2026. Following recent dividend increases, dividend payments of $7.9 billion are expected. The company also plans to repurchase $1 billion in stock as part of its newly announced $10 billion buyback plan in early 2030.
PepsiCo expects its revenue and earnings to continue growing to support its growing dividend. In 2026, the company expects net revenue to grow 4% to 6% (organic revenue growth 2% to 4%). This should support core earnings per share growth of 4% to 6% on a constant currency basis.
The company continues to see a long-term growth runway ahead. Its long-term goal is to achieve annual organic revenue growth of 4% to 6% and high-single-digit earnings per share growth on a constant currency basis. PepsiCo is investing heavily – nearly 5% of its net revenue by 2026 – to support its continued growth, with a focus on high-growth areas.