Pepsico (PEP) announced a 5.88% increase in the company's third quarter dividend to 45 cents per share. This compares to a quarterly dividend of 42.5 cents per share in the same quarter last year. The rate of dividend increase for the company is declining from the 5-year historical dividend growth rate of 14%.
- The projected payout ratio based on the new dividend is 44% based on 2010 estimated earnings per share of $4.02.
- The 5-year average payout ratio is approximately 41%.
- PEP carries a S&P Earnings and Dividend Quality Ranking of A+.