PepsiCo's 90% Payout Ratio Looks Unsustainable. The Dividend King's Earnings Acceleration Changes the Math
PepsiCo's high dividend payout ratio of 90% of core earnings and 100% of free cash flow has raised concerns about its sustainability. However, recent strong earnings reports in Q1 and Q2 2026, driven by international growth, productivity gains, and volume recovery, suggest an inflection …