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11/10/2026 | Press release | Distributed by Public on 11/10/2026 04:47
Do PepsiCo’s Dividends Make Up For A Lagging Stock
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PepsiCo (PEP) funds its dividend out of what it earns selling foods and beverages around the world. At the November 9, 2026 close, that payout gave the stock a yield of 4.1%. The share price presents a different picture. Over the past five years, the stock has trailed the broader market as measured by the S&P 500. So take a guess: once every dividend is counted, what did a five-year holder end up with next to the market?
How Far Has PepsiCo Stock Trailed The Market?
Over the five years to November 9, 2026, PepsiCo's share price fell 12.0%, while the S&P 500 rose 63.6%. On price alone, the stock trails the market by 75.6 percentage points. If you judged PepsiCo by its share price, you saw five years of lost ground while the market climbed.
How Much Did PepsiCo's Dividends Add?
With dividends reinvested, PepsiCo returned 3.5% over the same five years. Those payouts added 15.5 percentage points, enough to turn a falling share price into a small gain.
Did The Dividends Close The Gap For PepsiCo Holders?
They closed only a small part of the gap, because the S&P 500 pays dividends too.
| Return from Nov 1, 2021 to Nov 9, 2026 | On price alone | With dividends reinvested |
|---|---|---|
| The stock | -12.0% | +3.5% |
| S&P 500 | +63.6% | +74.5% |
Before taxes and costs. The S&P 500 is measured through the SPDR S&P 500 ETF.
With dividends, the S&P 500 returned 74.5% over the five years, leaving PepsiCo 71.0 percentage points behind the market.
PepsiCo's dividends did add more than the market's dividends, which contributed 10.9 points to the S&P 500. Once both sides count their dividends, however, PepsiCo's shortfall against the market shrinks by less than 5 percentage points. For a PepsiCo holder, the dividends offered little help against the broader market.
What This Means If You Own PepsiCo For Income
Over the past year, PepsiCo's dividends added 4.1 percentage points to its return, compared with 0.93 points for the S&P 500's dividends. Income investors receive that extra cash from PepsiCo, but over five years it arrived alongside a share price that left the stock far behind the market.
The company pays its dividend from what it sells. PepsiCo Foods North America and PepsiCo Beverages North America each brought in about 30% of the company's revenue in fiscal 2025. Over the twelve months to September 5, 2026, PepsiCo paid $7.88 billion in dividends out of $10.5 billion of free cash flow. In its October 8, 2026 earnings release, management kept its fiscal 2026 dividend plan unchanged from July, even as it cut its forecast for earnings growth.
If you own PepsiCo for income, judge it by its five-year return with dividends against the S&P 500's, not by the dividend yield on its own.
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Insight Guru Inc. published this content on November 10, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on November 10, 2026 at 10:47 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]