The Fed announced a 50-basis point rate hike Wednesday, taking the borrowing rate to a targeted range of 4.25% and 4.5%, the highest level in 15 years. In addition, as per its median forecast released…
on the same day, the Federal Reserve will hike interest rates to as high as 5.1% in 2023 before the central bank ends its fight against the soaring prices.
While the market had earlier expected a stance reversal by the central bank, the Fed’s hawkish tone crushed investors’ optimism, sending stocks to sink.
Moreover, a Reuters poll of economists showed that U.S. economic growth was expected to slow to 0.3% in 2023. It also suggests a 60% chance of a U.S. recession next year.
PepsiCo, Inc. (PEP)
PEP is a global food and beverage giant with a broad portfolio of soft drinks. The company’s segments include Frito-Lay North America, Quaker Foods North America, and PepsiCo Beverages North America. Its product offerings also include branded dips, cheese-flavored snacks, tortillas, and dairy products.
On November 17, PEP declared a quarterly dividend of $1.15 per share payable on January 6, 2023, which reflects a 7% increase compared to a year-earlier period.
PEP’s annual dividend of $4.60 translates to a 2.55% yield. Over the last five years, PEP’s dividend payouts have grown at a 7.4% CAGR. PEP has paid consecutive quarterly cash dividends since 1965, and this year marked the company’s 50th consecutive annual dividend increase.
PEP’s net revenue increased 8.8% year-over-year to $21.97 billion for the third quarter that ended September 3, 2022. The company’s gross profit increased…
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