PEP dividend analysis

PEP dividend deep dive

On the income line, PEP prints a 2.40% TTM yield with 74% of earnings going to the dividend. The 5-year distribution CAGR is 4.4%, and the consecutive-growth streak runs 15 years.

Dividend safety on PEP reads 69/100, derived from the VMCI Quality pillar (79/100) adjusted for payout-ratio strain. The score sits in the fair-safety band, which is the right anchor for income-portfolio sizing.

Compound-income view on PEP: at 2.40% TTM yield growing at 4.4% per year, a held-and-reinvested position returns 13.2% / 28.1% / 64.0% cumulatively over 5/10/20 years on income alone.

Comparison set on PEP: KO (5.00%), PG (1.50%), JNJ (3.60%). With a peer-mean yield of 3.37%, PEP prints 2.40% — a -0.97-pp discount on the income line.

Calendar inputs on PEP: ex 2026-03-01 → pay 2026-03-15. The quarterly cadence and $2.425/share run rate are the operative numbers for income planning.

PEP bottom-line read: low-yield on yield, slow on growth, fair-safety on safety. The income thesis is durable only if the Quality and Risk pillar trajectories stay in their current bands.