PepsiCo dividend: cash cover and yield
In 2025, PepsiCo paid a US$5.62 dividend per share, while free cash flow after stock pay was US$5.76 per share. Real free cash flow after stock pay was US$7,379 million against US$7,638 million of dividends.
How much does PepsiCo pay per share?
Dividends remain resilient but do not fully solve the cash constraint. FY2026 dividend per share is $5.81, based on two payments of $1.4225 and two of $1.48. The base reaches $6.53 by FY2029 through increases near 4%. The bear reaches $6.22 through 2% increases. The bull reaches $6.73 through stronger increases. PepsiCo has raised its dividend for 54 consecutive years, but distributions exceeded real free cash flow in recent years, so a cut is less likely than slower growth.
| Year to Dec 2025 | Year to Dec 2024 | Year to Dec 2023 | Year to Dec 2022 | Year to Dec 2021 | |
|---|---|---|---|---|---|
| EPS, diluted | 6.00 | 6.95 | 6.56 | 6.42 | 5.49 |
| Free cash flow after stock pay, per share (calculated) | 5.76 | 5.20 | 5.58 | 3.95 | 4.92 |
| Buybacks per share (calculated) | 0.73 | 0.73 | 0.72 | 1.08 | 0.08 |
| Stock pay per share (calculated) | 0.21 | 0.26 | 0.29 | 0.27 | 0.23 |
| Dividend per share | 5.62 | 5.33 | 4.95 | 4.53 | 4.25 |
Is PepsiCo's dividend covered by its cash?
- Cash for investment and returns — Capital spending, dividends and acquisitions compete for cash. The company’s real free cash flow after stock pay was US$7,379 million in 2025, against US$7,638 million of dividends.
| Year to Dec 2025 | Year to Dec 2024 | Year to Dec 2023 | Year to Dec 2022 | Year to Dec 2021 | |
|---|---|---|---|---|---|
| Real free cash flow (after stock pay) (calculated) | 7,379 | 6,825 | 7,526 | 5,228 | 6,669 |
| Dividends paid | 7,638 | 7,229 | 6,682 | 6,172 | 5,815 |
| Shares bought back | 1,000 | 1,000 | 1,000 | 1,500 | 106 |
| New shares sold | 97 | 166 | 116 | 138 | 185 |
| Debt raised minus debt repaid (calculated) | 4,107 | 156 | 2,477 | 919 | 667 |
| Returned to shareholders, share of real free cash flow (calculated) | 117.1% | 120.6% | 102.1% | 146.7% | 88.8% |
What could change PepsiCo's dividend?
Commodity inflation or expiring hedges that outpace productivity savings would pressure operating margin in 2027. Weak cash conversion would also force lower buybacks and a lower valuation multiple.
| FY2026 | FY2027 | FY2028 | FY2029 | |
|---|---|---|---|---|
| Revenue growth | 6.0 % (4.5 % / 7.0 %) | 4.5 % (2.0 % / 6.5 %) | 4.3 % (2.0 % / 6.0 %) | 4.0 % (2.5 % / 5.5 %) |
| Net margin | 11.4 % (10.4 % / 11.7 %) | 11.6 % (10.0 % / 12.1 %) | 11.8 % (9.7 % / 12.5 %) | 12.0 % (9.4 % / 12.8 %) |
| One-time items | -500 (-750 / -400) | -300 (-500 / -200) | -200 (-350 / -100) | -150 (-250 / 0.00) |
| Earnings per share, reported | 7.93 (6.91 / 8.30) | 8.62 (6.95 / 9.36) | 9.25 (6.99 / 10.36) | 9.85 (7.02 / 11.30) |
| Buybacks | 1,000 (1,000 / 1,000) | 1,000 (500 / 1,500) | 1,000 (500 / 1,500) | 1,000 (500 / 1,500) |
| Dividend per share | 5.81 (5.81 / 5.81) | 6.04 (5.98 / 6.10) | 6.28 (6.10 / 6.41) | 6.53 (6.22 / 6.73) |