Retirees Are Quietly Accumulating This 8% Dividend Grower With a Half-Century of Increases

"With 50+ consecutive years of dividend increases, PEP has earned Dividend King status-the gold standard for income investors seeking reliability in retirement portfolios. At the current price of $162.66, the annualized dividend of $5.69 delivers a yield of approximately 3.5%. That trails the current 10-year Treasury yield of 4.04% by roughly 50 basis points, but the comparison misses the point entirely. Treasury bonds offer static income; PepsiCo offers income that grows."

"Over the past decade, PepsiCo's quarterly dividend has climbed from $0.7025 in 2016 to $1.4225 in 2026, representing a compound annual growth rate of approximately 7.3%. The five-year CAGR sits at 6.8%, demonstrating consistent mid-to-high single-digit growth through multiple economic cycles. The most recent increase of 5% year-over-year continues that trajectory. While not explosive, this measured approach reflects management's commitment to sustainable growth rather than aggressive hikes that might prove unsustainable during downturns."

PepsiCo paid its March 31, 2026 quarterly dividend of $1.4225 per share and holds over 50 consecutive years of dividend increases, achieving Dividend King status. The annualized dividend of $5.69 yields about 3.5% at a stock price of $162.66. Dividend growth shows a ten-year CAGR of roughly 7.3% and a five-year CAGR of 6.8%, with the most recent increase at 5% year-over-year. Fiscal 2025 free cash flow totaled $7.67 billion versus $7.64 billion in dividends, producing a 99.6% payout ratio. Capital expenditures rose to $4.42 billion in 2025 as manufacturing was modernized. Operating cash flow reached $12.09 billion.

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