PepsiCo has announced a mid-single digit increase to its annual dividend, marking the company’s 51st consecutive year of dividend growth. The hike, in the range of 3–5%, reflects the company’s commitment to shareholder returns despite flat EPS growth over the past year and a payout ratio exceeding 100%. Management cited stable free cash flow from its beverage and snack portfolios, with beverage volumes up 2% in North America and salty snacks volume growth of 1.5% globally, as the underpinning for the raise.

In the third quarter, Donaldson Capital Management LLC boosted its stake in PepsiCo by 1.9%, acquiring an additional 3,850 shares and bringing its total holding to just over 200,000 shares. This move follows similar activity from several smaller asset managers: Vermillion & White Wealth Management doubled its stake, adding 121 shares, while Halbert Hargrove Global Advisors expanded its holding by 667%, adding 207 shares. These incremental purchases helped institutional ownership of the company rise to approximately 73% by quarter end.

Analyst coverage of PepsiCo remains broadly positive, but not without caution. Of the 21 research firms covering the company, nine carry a buy rating, ten recommend holding, and one has issued a sell rating. Recent notes include an upgrade of the hold rating to overweight by Piper Sandler, while UBS trimmed its view slightly but maintained a buy stance. The consensus view indicates steady revenue growth driven by innovation in low-calorie beverages and international expansion, offset by concerns over supply-chain inflation and currency headwinds.