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The company’s revenue topped analysts’ expectations in its last reported quarter. Its net sales rose 11.6% to $20.19 billion, versus a $19.39 billion consensus estimate. Its adjusted earnings per share were $1.79, topping the $1.73 consensus estimate by 3.5%. However, management cited supply chain disruptions and inflationary pressures on labor, commodities, and transportation to have weighed down the company’s earnings. PEP also raised its full-year organic revenue growth forecast to 8%, up from its earlier forecast of 6% growth.
The company is a dividend aristocrat with a strong dividend growth history. PEP’s $4.30 annual dividend yields 2.59% at the current share price. On November 18, PEP declared a $1.08 per share quarterly dividend, representing a 5% increase versus the year-earlier period. The dividend is payable on January 7, 2022. This year marked the company’s 49th consecutive annual dividend increase. PEP’s dividend payouts have increased at a 5.8% CAGR over the past three years and a 7.5% CAGR over the past five years. PEP also has a solid cash position, which facilitates the returns to its shareholders. Its trailing-12-months levered free cash flow, and net operating cash flow came in at $4.29 billion and $11.12 billion, respectively.
