PepsiCo Boosts Dividend 5% to $1.4225 and Holds $165 Target
Wells Fargo and TD Cowen maintained Hold ratings on PepsiCo with matching $165 price targets, citing its turnaround strategy and reaffirmed 4%-6% sales growth guidance for H2 2026. The Board approved a $1.4225 quarterly dividend, a 5% increase that marks the 54th consecutive annual raise.
1. Analyst Ratings Maintained
On February 20, Wells Fargo’s Christopher Carey and TD Cowen’s Robert Moskow both maintained Hold ratings on PepsiCo, aligning on a $165 price target. Moskow noted the company’s detailed turnaround strategy and management’s confidence in hitting 4%-6% sales growth by the latter half of 2026.
2. Dividend Increase
The Board approved a $1.4225 quarterly dividend per share, representing a 5% rise from the prior year’s period. This marks PepsiCo’s 54th consecutive annual dividend increase, with shareholders of record on March 6 set to receive the payment on March 31.
3. Stake Adjustment
Institutional investor APG Asset Management reduced its position by 6,585 shares, a 0.6% cut, leaving a total holding of 1,115,643 shares. This modest sell-down appears to reflect routine portfolio rebalancing rather than a fundamental shift in conviction.