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Barchart
Barchart
Mark R. Hake, CFA

How to Play PepsiCo's Expected 5% Dividend Hike Next Month

PEP PepsiCo ITM Barchart OTM

PepsiCo (PEP) has said it will hike its dividend by 5% but has not yet set the exact dividend per share (DPS) amount - expected next month. One way to play this is to short out-of-the-money puts and to buy in-the-money (ITM) long-dated calls with the short-put proceeds.

PEP is at $149.85 in midday trading on Tuesday, March 18. That is up from a recent low of $143.39 on Feb. 13, 2025, but well off its 6-month high of $176.52 on Oct. 14, 2024.

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