How much to invest in Pepsi for $1,000 in annual dividends (2026)

PepsiCo (PEP) has paid dividends without interruption for implicit 50 years, making it a reliable income generator for investors seeking dependable currency flow.

The beverage and snack elephantine presently trades (as of January 16) astatine $146.60 per stock with an yearly dividend of $5.69, according to information from Yahoo Finance.

That works retired to a output of astir 3.9%, which beats the S&P 500's 1.13% output by a comfy margin.

Here's the math: To pouch $1,000 successful yearly dividends from Pepsi, you'd request to ain astir 176 shares. At the existent price, that's an investment of astir $25,800.

But before you constitute that check, there's a bigger communicative unfolding astatine PepsiCo that each capitalist needs to understand.

CEO Ramon Laguarta didn't sugarcoat the concern during caller net calls.

The company's North America nutrient business, which includes the monolithic Frito-Lay operation, has been struggling with measurement declines and borderline pressure.

During the December capitalist telephone Laguarta said:

He added, "This concern remains a captious operator of shareholder worth for PepsiCo and it indispensable present overmuch amended show successful 2026 versus 2025."

That's remarkably blunt connection from a Fortune 500 CEO, particularly erstwhile speaking to Wall Street analysts.

The numbers backmost up his concerns. Frito-Lay North America saw measurement declines successful caller quarters arsenic the institution shifted distant from heavy promotional strategies. The concern besides faced service-level issues aboriginal successful the twelvemonth pursuing strategy transitions.

The consciousness of urgency became adjacent much evident erstwhile PepsiCo announced Steve Schmitt as its caller CFO successful November 2025.

Schmitt comes from Target, wherever helium served arsenic main operating officer. That's a notable departure from PepsiCo's accustomed signifier of promoting from within.

"Steve has a beardown and complementary background, having served successful concern roles successful the retail, restaurant, logistics, and proscription industries, and brings america a caller perspective," Laguarta explained.

The timing matters. PepsiCo didn't hold for its accepted February guidance play to laic retired 2026 expectations. Instead, the institution issued preliminary targets successful aboriginal December.

"The connection you should instrumentality from this is it's not concern arsenic accustomed here," Schmitt said during his archetypal net call. "Going nationalist with our goals present gives america a caput commencement connected the twelvemonth and makes america accountable."

That accountability starts with immoderate ambitious targets.

The institution is betting large connected affordability investments, particularly successful Frito-Lay North America.