The Board of Directors of PepsiCo today approved a 1% per share increase in the quarterly dividend, raising it from 15 cents to 16 cents per share.

The increase marks the 31st consecutive year of increased annual dividends. PepsiCo's dividend is payable June 30, 2003 to shareholders of record on June 13, 2003.

The company also said it is confident it can achieve its previously stated long-term growth targets.