PepsiCo's Dividend Ate 93¢ Of Every Free Dollar Last Year (PEP)

Run PepsiCo's own FY2025 numbers and free cash flow comes out at $8.2 billion. Dividends paid: $7.6 billion. That's 93 cents of every free dollar the company generated, straight back out the door. Here's the uncomfortable part: PEP's dividend passes the cover rule on core earnings — and fails the exact same rule on GAAP earnings, and fails it again on free cash flow. Same company, same annual report, three answers. The full Main Street Test on PepsiCo — all four rules, a 54-year streak at a 52-week low, and which earnings I actually run the test on: https://youtu.be/QplX0gMn_BM This isn't investment advice. I'm documenting my own investing journey. Please do your own research before investing. #dividendstocks #PEP #dividendinvesting

Added 25 Jul 2026