PepsiCo is a Dividend King with 52+ consecutive years of increases. Its diversified portfolio spans beverages and snacks via brands including Pepsi, Gatorade, Lay's, and Quaker. Snack food exposure provides more stable volumes than pure beverages. International expansion in emerging markets drives long-term growth.
Is PEP a good dividend investment in 2026?
PEP offers a 3.69% forward yield with a 72% payout ratio. With a safety score of 85/100, the dividend appears very safe. The 5-year dividend CAGR of 6.7% demonstrates strong, consistent growth that outpaces inflation.
PEP DRIP calculator — what's the difference?
With DRIP on a $10,000 investment over 10 years, your PEP portfolio grows to $21.5K vs $19.3K without reinvestment — a DRIP bonus of $2.2K. This is the compound interest effect in action.
PEP dividend growth history & forecast
PEP has grown its dividend by 7.1% over the last year and 6.7% annually over 5 years. At this pace, an investor who holds for 10+ years will see their yield on cost grow substantially above the current 3.69% — illustrating why dividend growth stocks are powerful long-term wealth builders.
Affiliate links — we may earn a commission at no cost to you. Not financial advice.
🌍 PEP Yield by Country & Account Type
Real after-tax yield depends on where you live and how you hold PEP.
Gross yield
3.69%
Tax rate
15.00%
After-tax yield
3.14%
Real yield (−CPI)
0.34%
Account/Country
Tax Rate
After-tax Yield
Real Yield
$10K Annual Income
🇺🇸 Roth IRA / 401k
0%
3.69%
0.89%
$369 / yr
🇺🇸 US Taxable (15%) ✓
15%
3.14%
0.34%
$314 / yr
🇺🇸 US Taxable (20%)
20%
2.95%
0.15%
$295 / yr
🇬🇧 UK ISA
0%
3.69%
0.89%
$369 / yr
🇬🇧 UK Taxable
8.75%
3.37%
0.57%
$337 / yr
🇨🇦 TFSA
0%
3.69%
0.89%
$369 / yr
🇨🇦 CA Taxable
25%
2.77%
-0.03%
$277 / yr
🇦🇺 Super (pension)
15%
3.14%
0.34%
$314 / yr
🇦🇺 AU Taxable
30%
2.58%
-0.22%
$258 / yr
🇩🇪 DE Taxable
26.375%
2.72%
-0.08%
$272 / yr
🇫🇷 FR Taxable
30%
2.58%
-0.22%
$258 / yr
Real yield = after-tax yield minus US CPI of 2.8%. Click any row to select. US withholding tax (30%, reducible by treaty) applies to non-US residents holding US stocks in taxable accounts.
🎯 PEP Income Goal & Break-Even
Dividend Break-Even
18yr
Years for dividends to repay your full PEP investment price of $146.80/share (🇺🇸 US Taxable (15%) · 15.00% tax)
$10K invested · 10 Years
Dividends earned (DRIP)
$5.5K
Lost to inflation (~2.8% CPI)
−$2.5K
Real purchasing power gain
$3.0K
How much do I need to invest in PEP for:
Shares needed
5,210
Capital required
$764,828
Monthly income
$2,000
Based on current dividend of $5.42/share/yr · 🇺🇸 US Taxable (15%) · static projection (no growth assumed).
📅 PEP Dividend Payment Schedule
PEP pays quarterly — 4 times per year. Next ex-div: Mar 6, 2026.
Jan
Feb
Mar
💰
Apr
May
Jun
💰
Jul
Aug
Sep
💰
Oct
Nov
Dec
💰
10 shares
$11.52 / payment
$46.07 / year after tax
100 shares
$115.17 / payment
$460.70 / year after tax
1,000 shares
$1151.75 / payment
$4607.00 / year after tax
📊 PEP vs Consumer Staples Sector Benchmarks
How PEP compares to typical Consumer Staples sector averages.
Dividend YieldPEP: +3.69% vs sector avg 3.10% ✓ Better
PEP━━ Consumer Staples avg: 3.10%
5Y Dividend CAGRPEP: +6.70% vs sector avg 5.50% ✓ Better
PEP━━ Consumer Staples avg: 5.50%
Payout RatioPEP: 72.00% vs sector avg 58.00% ↓ Below avg
PEP━━ Consumer Staples avg: 58.00%
⚠️ Disclaimer: All projections are for educational purposes only. Dividend payments, stock prices, and growth rates are estimates based on historical data. Past performance does not guarantee future results. This is not financial advice — consult a qualified financial professional before investing. Data sourced from public financial records and updated regularly.