PepsiCo has paid uninterrupted dividends for over 50 years, offering investors a reliable income stream. The current annual dividend yield of $5.69 per share translates to roughly 3.9%, outperforming the S&P 500’s yield of 1.13%. To earn $1,000 in annual dividends, you’d need approximately 176 shares, costing around $25,800.

However, PepsiCo faces challenges in its North America food business, including volume declines and margin pressure at Frito-Lay. CEO Ramon Laguarta emphasized the need for improved performance in 2026. The company recently appointed a new CFO from Target, signaling a shift in strategy.

PepsiCo is implementing changes to address its operational issues, such as affordability investments and aggressive innovation. The company is revamping its product portfolio, closing inefficient manufacturing plants, and streamlining operations to drive growth and improve margins. The focus is on returning to consistent growth to support future dividend increases.

Despite operational challenges, PepsiCo’s international operations continue to expand, with solid growth in mid-single-digit rates. The company is investing in affordability and brand building in emerging markets, aiming to drive margin expansion over time. Investors must monitor the company’s progress closely to assess its ability to return to consistent growth.

Read more at Yahoo Finance: How much to invest in Pepsi for $1,000 in annual dividends (2026)