PepsiCo Inc. said today that the company is all set to authorize buyback of common stocks worth $15 billion. The board of the company decided to repurchase the stocks through June 2013. PepsiCo Inc., the biggest maker of snack foods in the world, also decided to increase its annual dividend by 7% for the year.

PepsiCo Inc. said today in a statement that the proposed buyback plan will replace the 2007 buyback plan. The current buyback plan is scheduled to expire in June this year. The company plans to buy back shares worth $4.4 billion in 2010.

"The board's action reflects continued confidence in the growth of our business and our commitment to providing strong cash returns to our shareholders," said Indra Nooyi, chairman and CEO of PepsiCo.

Also, the company said that the board approved the annual dividend for 2009 to increase by 7%. PepsiCo decided to pay a dividend of $1.92 per share. Earlier, the company was planning to give a dividend of $1.80 to its shareholders in 2009. The company paid a dividend of $1.78 per share last year. PepsiCo said in a statement that the company had paid about $26 billion to its shareholders through dividends and share repurchases in the past four years.