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PepsiCo Declares Dividend of $0.75 Per Share

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Price movement

PepsiCo (PEP) has a market cap of $151.4 billion and fell 0.09% to close at $101.62 per share on November 17, 2016. The stock’s weekly, monthly, and YTD (year-to-date) price movements were -1.6%, -4.4%, and 3.9%, respectively, on the same day.

PEP is now trading 3.9% below its 20-day moving average, 4.3% below its 50-day moving average, and 1.9% below its 200-day moving average.

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Related ETF and peers

The SPDR S&P 500 Growth ETF (SPYG) invests 0.91% of its holdings in PepsiCo. The YTD price movement of SPYG was 5.3% on November 17.

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

  • Coca-Cola (KO): $183.1 billion
  • Mondelez International (MDLZ): $69.7 billion
  • Dr Pepper Snapple Group (DPS): $15.8 billion

PepsiCo’s dividend and fiscal 3Q16 performance

PepsiCo has declared a quarterly dividend of just over $0.75 per share on its common stock. The dividend will be paid on January 6, 2017, to shareholders of record at the close of business on December 2, 2016.

PepsiCo reported fiscal 3Q16 net revenue of $16.0 billion—a fall of 1.8% from its net revenue of $16.3 billion in fiscal 3Q15. PepsiCo’s revenue from its Frito-Lay North America and North America Beverages segments rose 3.4% and 2.9%, respectively. The company’s revenue from its Quaker Foods North America, Latin America, and Europe Sub-Saharan Africa segments fell 2.1%, 22.8%, and 1.9%, respectively, between fiscal 3Q15 and fiscal 3Q16.

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Its net income and EPS (earnings per share) rose to $2.0 billion and $1.37, respectively, in fiscal 3Q16, as compared with $533.0 million and $0.36, respectively, in fiscal 3Q15. It reported non-GAAP (generally accepted accounting principles) EPS of $1.40 in fiscal 3Q16—a rise of 3.7% compared to fiscal 3Q15. PEP’s cash and cash equivalents and inventories rose 12.8% and 14.7%, respectively, between fiscal 4Q15 and fiscal 3Q16.

Projections

PepsiCo has made the following projections for fiscal 2016:

  • core EPS of $4.78
  • organic revenue growth of ~4%, excluding the impact of a 53rd week and structural changes, but including 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, excluding certain items

Now let’s discuss Lear Corporation (LEA).

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