PepsiCo pays dividends four times a year, on a quarterly schedule. The company has paid consecutive quarterly cash dividends since 1965, making it one of the most reliable dividend-paying stocks on the market. Payments typically land in March, June, September, and December.
PepsiCo’s Quarterly Payment Schedule
Each quarter, PepsiCo’s board of directors formally declares a dividend, sets a record date (the cutoff for determining which shareholders qualify), and announces a payment date. For 2026, payments include a March 31 distribution and a June payment. The pattern repeats through September and December, so shareholders receive four deposits per year if they hold the stock through all four record dates.
To receive a given quarter’s dividend, you need to own shares before the ex-dividend date, which is typically set a few business days before the record date. If you buy shares on or after the ex-dividend date, you won’t receive that quarter’s payment but will be eligible for the next one.
How Much PepsiCo Pays
PepsiCo has increased its dividend for 54 consecutive years, earning it the title of “Dividend King,” a designation reserved for companies with 50 or more straight years of annual increases. The most recent raise was a 4% bump. That long streak means the per-share amount has grown steadily over time, and the board has shown a strong commitment to continuing annual increases.
The company’s payout ratio, which measures how much of its earnings go toward dividends, sits around 89%. That’s on the higher side, meaning PepsiCo is directing a large share of its profits back to shareholders rather than reinvesting every dollar into operations. For context, a payout ratio above 80% is generally considered elevated, though it’s not unusual for mature consumer staples companies with stable cash flows.
Reinvesting Your Dividends Automatically
If you’d rather use your quarterly dividends to buy more PepsiCo shares instead of receiving cash, the company offers a Direct Stock Purchase and Dividend Reinvestment Plan (DRIP) through its transfer agent, Computershare. The plan lets you automatically reinvest dividends into additional shares, and you can also make extra cash purchases of PepsiCo stock through it.
To enroll, you can sign in to Computershare’s Investor Centre online and select the dividend reinvestment option under your profile. If you hold PepsiCo shares through a brokerage like Fidelity, Schwab, or Vanguard, most brokerages also offer their own automatic reinvestment feature that works similarly. Either way, reinvesting turns each quarterly payment into fractional shares, which compounds your position over time without requiring you to place manual trades.
How Dividends Are Taxed
PepsiCo’s dividends are classified as qualified dividends for most U.S. shareholders, meaning they’re taxed at the lower long-term capital gains rate (0%, 15%, or 20% depending on your income) rather than your ordinary income tax rate. To qualify for that treatment, you need to have held the shares for more than 60 days during the 121-day window surrounding the ex-dividend date.
If you hold PepsiCo in a tax-advantaged account like a traditional IRA or Roth IRA, you won’t owe taxes on the dividends in the year they’re paid. In a Roth IRA, qualified withdrawals are tax-free entirely. In a traditional IRA, you’ll pay ordinary income tax when you eventually take distributions in retirement.