PepsiCo Raises Dividend, Will Buy Back Shares (PEP)

in ceo Gold Gold Investing Gold Investment by admin — March 15, 2010 5:51 am | no comments

Soft drink giant PepsiCo, Inc. ( PEP ) said Monday that it would raise its dividend by 7%, and announced plans to buy back up to $15 billion in its own stock. PepsiCo boosted its quarterly dividend to 48 cents from 45 cents per share. CEO Indra Nooyi said in a statement that “From 2005 through 2009, we distributed over $26 billion to our shareholders through dividends and share repurchases. The Board’s action reflects continued confidence in the growth of our business and our commitment to providing strong cash returns to our shareholders.” PepsiCo shares rose 90 cents, or +1.4%, in premarket trading Monday. The Bottom Line We have been recommending shares of PEP since July 30, when the stock was trading at $56.33. Shares of PEP will now have a 2.95% dividend yield, based on the new higher dividend payout and last night’s closing stock price of $65.10. PepsiCo, Inc. ( PEP ) is a “recommended” dividend stock, holding a Dividend.com DARS™ Rating of 3.5 out of 5 stars. Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .