PepsiCo, Inc.
PEPPepsiCo, Inc. (PEP) is a Consumer Defensive company that currently yields 4.15% — historically undervalued based on 10 years of dividend yield history. The Weiss valuation model places the undervaluation threshold at $145.50 and the overvaluation threshold at $200.69. PepsiCo, Inc. holds a quality score of 55/100 (Average), reflecting 54 consecutive years of dividend growth with a 75% payout ratio. The 5-year dividend CAGR stands at 6.9%.
PEP Dividend Yield History — Weiss Valuation
Distance to undervalued
In undervalued territory
Price sits 4.9% below the Weiss buy zone ceiling
The current yield already clears the historical undervaluation threshold. The next question is whether the dividend quality and payout profile deserve that higher yield.
Zone ceiling
$145.50
Current yield
4.15%
Research checklist
What to clear before buying the yield
Updated Aug 12, 2026
Dividend durability
54YLong dividend history supports a deeper look.
Earnings payout
75%Coverage deserves a closer look in filings.
Cash payout
103%Confirm cash conversion and one-off effects.
Dividend growth
6.9%Recent growth adds income compounding potential.
What changed
What changed since the last update
2026-08-11 → 2026-08-12
No major change in signal, yield, price, quality, or payout since the last update.
Why Now?
PepsiCo, Inc. is trading near its historical undervaluation band.
Current yield 4.2% vs historical max 4.4% (95% of maximum).
14 consecutive years without a dividend cut.
Elevated payout ratio of 75%.
What matters now
Read the signal before the headline yield
Valuation is the invitation here: the yield is elevated versus its own history.
The 55/100 quality score says the headline yield needs extra skepticism.
Free cash flow payout is above 100%, so cash coverage is the first risk to unpack.
PEP Dividend Income Projection — DRIP Compounder
Dividend Compounder (DRIP)
Year 1 Income
$444
Year 10 Income
$1,354
Yield on Cost
14.63%
Total Income
$8,077
Assumes dividends reinvested at current price. Simplified model — for illustrative purposes only.
Track actual vs. projected
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Full price history & technical analysis
TradingView ↗Fundamentals, valuation & analyst ratings
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Morningstar ↗Track dividends received & tax reports
Sharesight ↗PEP Dividend Quality Score
Quality Score
Average
Key Metrics
PEP has an undervalued Weiss signal. Review the risks and current trading costs before acting.
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