Tags: pepsico | snack | dividend

PepsiCo Lifts Dividend 4.4% After Quarterly Sales Gain

Wednesday, 02 May 2012 05:11 PM

PepsiCo Inc., the world’s largest snack-food maker, increased its dividend by 4.4 percent Wednesday after reporting a jump in first-quarter sales last week.

The company, based in Purchase, New York, will pay $2.15 a share over the course of a year, up from $2.06, according to a statement. PepsiCo, which said it raised the dividend for the 40th consecutive year, makes payments quarterly.

PepsiCo, led by Chief Executive Officer Indra Nooyi, said on April 26 that first-quarter sales rose 4.1 percent to $12.4 billion, as revenue in the Latin America Foods unit grew 11 percent on higher pricing. Net income fell 1.4 percent from a year earlier to $1.13 billion, or 71 cents a share.

Nooyi is cutting 8,700 jobs this year to reduce expenses as she plans to spend as much as $600 million more on marketing to win back soft-drink market share from Coca-Cola Co.

The company’s next quarterly dividend, of 53.75 cents a share, is payable on June 29 to stockholders of record June 1, the company said in the statement.

PepsiCo climbed 0.5 percent to $66.83 at the close in New York. The shares fell 3.6 percent in the 12 months through today, compared with a 14 percent jump for Coca-Cola.

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