PEP PepsiCo Inc

PepsiCo Inc.'s (PEP) board approved a 4% increase in the beverage and snack giant's annual dividend--the 40th consecutive annual dividend boost.

The dividend will be increased to $2.15 from $2.06, with the additional payout to shareholders expected to cost the company about $140.8 million a year.

PepsiCo last month reported that its first-quarter earnings fell 1.4% on higher costs as revenue growth slowed and sales from Americas beverages continued to slide.

The company had been seeing double-digit sales increases over the past two years, helped by acquisitions and growth in emerging markets, but its bottom line has been stung by higher commodity costs.

Shares closed Tuesday at $66.49 and were inactive premarket. The stock is down 4.1% in the past year, trailing the broader market.

-By Tess Stynes, Dow Jones Newswires; 212-416-2481; Tess.Stynes@dowjones.com