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PepsiCo Declared Quarterly Dividend to Be Paid on September 30

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Jul. 15 2016, Published 6:13 p.m. ET

Price movement

PepsiCo (PEP) has a market cap of $158.7 billion. It rose by 0.05% to close at $109.96 per share on July 14, 2016. The stock’s weekly, monthly, and year-to-date (or YTD) price movements were 2.3%, 6.5%, and 11.7%, respectively, on the same day.

PepsiCo is trading 4.6% above its 20-day moving average, 6.2% above its 50-day moving average, and 10.4% above its 200-day moving average.

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Related ETFs and peers

The SPDR S&P 500 Growth ETF (SPYG) invests 0.92% of its holdings in PepsiCo. The ETF tracks an index of primarily large-cap growth stocks. The index selects companies from the S&P 500 Index based on three growth factors. The YTD price movement of SPYG was 4.5% on July 14.

The Consumer Staples Select Sector SPDR ETF (XLP) invests 4.5% of its holdings in PepsiCo. The ETF tracks a market-cap-weighted index of consumer staples stocks drawn from the S&P 500.

The market caps of PepsiCo’s competitors are as follows:

  • Coca-Cola (KO) — $196.4 billion
  • Mondelez International (MDLZ) — $71.7 billion
  • Dr Pepper Snapple Group (DPS) — $18.0 billion

PepsiCo declared dividend

PepsiCo has declared a quarterly dividend of $0.7525 per share on its common stock. The dividend will be paid on September 30, 2016, to shareholders of record at the close of business on September 2, 2016.

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PepsiCo’s performance in fiscal 2Q16

PepsiCo reported fiscal 2Q16 net revenues of $15.4 billion, a fall of 3.1% from the net revenues of $15.9 billion in fiscal 2Q15. Revenue from Frito-Lay North America, Quaker Foods North America, and North America Beverages rose by 3.2%, 2.7%, and 0.63%, respectively.

Revenues from its Latin America, Europe Sub-Saharan Africa, and Asia, Middle East and North Africa segments fell by 22.8%, 5.4%, and 1.5%, respectively, between fiscal 2Q15 and fiscal 2Q16. The company’s gross profit margin and operating profit rose by 2.0% and 2.2%, respectively.

Net income and EPS

In fiscal 2Q16, PepsiCo’s net income and EPS (earnings per share) rose to $2.01 billion and $1.38, respectively, compared with $1.98 billion and $1.33 in fiscal 2Q15.

PEP’s cash and cash equivalents and inventories rose by 6.0% and 28.2%, respectively, between fiscal 4Q15 and fiscal 1Q16. In fiscal 2Q16, its current ratio and debt-to-equity ratio rose to 1.4x and 4.9x, respectively, compared with 1.3x and 4.8x in fiscal 4Q15.

Projections

PepsiCo (PEP) made the following projections for fiscal 2016:

  • core EPS of $4.71
  • organic revenue growth of ~4%, which excludes the impact of the 53rd week and structural changes and includes the deconsolidation of its Venezuelan operations
  • productivity savings of ~$1 billion
  • more than $10 billion in cash flow from operating activities
  • free cash flow of more than $7 billion, which excludes certain items
  • net capital spending of ~$3 billion
  • a return of ~$7 billion to its shareholders through dividends of ~$4 billion and share repurchases of ~$3 billion.

In the next part, we’ll take a look at Coach.

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