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.
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.
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.
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.
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.
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