We're at the end of the first earnings season of 2023, and like any earnings season, this one featured a clutch of dividend raises. Two of the more famous companies declaring hikes were beverage and snack giant PepsiCo (NASDAQ: PEP) and logistics mainstay United Parcel Service (NYSE: UPS) . Here's the skinny on both dividend raises and whether they help support the case for buying these stocks now.
PepsiCo is one of the market's most recently crowned Dividend Kings, the tiny group of stocks that have increased their dividends at least once annually for a minimum of 50 years in a row. The company reached that status in early 2022 and maintained it with a fresh dividend raise at the beginning of February. The company's new quarterly dividend of $1.15 per share represents a 7% increase over the prior one.
PepsiCo is one of those reliable operators that manage to land well in the black in nearly every quarter, throwing off billions of dollars in cash as it does so. The company has a strong lineup of both beverage and snack brands. The former include Pepsi and its variations, of course, plus Gatorade sports beverages and Tropicana Juices. The latter feature top munchies such as Lay's chips, Doritos, and even Quaker Oats.
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