Alternatively, email editorial-team (at). Have feedback on this article? Concerned about the content? Get in touch with us directly. Looking for more high-yielding dividend ideas? Try our curated list of strong dividend payers. For instance, we've picked out 1 warning sign for PepsiCo that investors should take into consideration. At the same time, there are other factors our readers should be conscious of before pouring capital into a stock. It's important to note that companies having a consistent dividend policy will generate greater investor confidence than those having an erratic one. We would be a touch cautious of relying on this stock primarily for the dividend income. The low payout ratio is a redeeming feature, but generally we are not too happy with the payments PepsiCo has been making. Overall, we always like to see the dividend being raised, but we don't think PepsiCo will make a great income stock. When a company prefers to pay out cash to its shareholders instead of reinvesting it, this can often say a lot about that company's dividend prospects. PepsiCo's earnings per share has barely grown, which is not ideal - perhaps this is why the company pays out the majority of its earnings to shareholders. However, PepsiCo has only grown its earnings per share at 4.8% per annum over the past five years. The company's investors will be pleased to have been receiving dividend income for some time. The Dividend's Growth Prospects Are Limited
Dividends have grown at a reasonable rate over this period, and without any major cuts in the payment over time, we think this is an attractive combination as it provides a nice boost to shareholder returns. This means that it has been growing its distributions at 7.6% per annum over that time. Since 2012, the dividend has gone from US$2.06 to US$4.30. The company has been paying a dividend for a long time, and it has been quite stable which gives us confidence in the future dividend potential. Historic-dividend PepsiCo Has A Solid Track Record
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