Latest news with #PepsiCo
Globe and Mail
4 hours ago
- Business
- Globe and Mail
Thirsty for Passive Income? PepsiCo's Dividend Yield Continues to Deliver.
Key Points Dividend investors usually want a mixture of high yield and dividend growth over time. PepsiCo is out of favor on Wall Street today, leaving it with a lofty yield. The consumer staples giant is also a Dividend King. 10 stocks we like better than PepsiCo › There are plenty of things to dislike about PepsiCo (NASDAQ: PEP) today, which is why some investors may want to pass it by. But if you are a dividend-focused investor, you should probably look at the many long-term positives here. Indeed, if history is any guide, the negatives keeping the stock depressed are highly likely to be short term in nature. Here's why PepsiCo can still satisfy investors with a thirst for dividends. PepsiCo is a very well-run business PepsiCo is one of the largest beverage makers on the planet, with its namesake brand leading the way. It is also the most important salty snack company, thanks to its Frito-Lay business. And it has a strong position in the packed food space with Quaker Oats. It is one of the most diversified food companies you can buy. It also easily competes with its peers. PepsiCo has a well-honed distribution system and a strong research and development (R&D) team. Its advertising might is on par with any of its competitors. And it is large enough to act as an industry consolidator, buying up-and-coming companies to quickly expand its brand portfolio. However, even well-run companies end up struggling once in a while. And today, PepsiCo is in a funk, lagging behind its closest peers on key financial metrics. For example, the 2.1% organic sales growth PepsiCo achieved in the second quarter of 2025 was less than half of the 5% achieved by its beverage-focused archrival Coca-Cola. Given the often myopic vision of Wall Street, PepsiCo's stock has fallen -- a lot. Even after a recent rally, PepsiCo's shares are down more than 25% from their 2023 highs. That's pushed the dividend yield up to a historically high 4% or so. PEP data by YCharts. Is PepsiCo's nosedive a sign of risk or an opportunity? So, when a stock price falls as far as PepsiCo's stock price has fallen, investors need to stop and take notice. Yes, PepsiCo is an industry laggard right now. But for investors who think in decades and not days, PepsiCo's stock looks incredibly cheap. The historically high yield hints at this, but the view is backed up by price-to-sales, price-to-earnings, and price-to-book value ratios that are all below their five-year averages. This is a big opportunity because PepsiCo has proven over time that it knows how to muddle through the rough periods so that it can excel over the long term. The biggest indication of this is the company's status as a Dividend King with over five decades of annual dividend increases under its belt. You can't build a track record like that by accident. It requires discipline, consistency, and a good business plan. What's interesting is that, despite the current headwinds the company is dealing with, the board of directors voted to increase the dividend in June 2025. The 5% increase is well above the historical growth rate of inflation and fairly impressive when you consider how negative investors are on the stock. Clearly, management and the board believe there are good things ahead for PepsiCo. High-yield PepsiCo is still delivering the goods For long-term dividend investors, the best time to buy stocks is often when they are facing problems that are likely to be short term in nature. That appears to be the case today with PepsiCo, noting that it recently bought a Mexican-American food maker and a probiotic beverage company to help modernize its brand portfolio. Given enough time, this Dividend King is likely to muddle through again, just like it has many times before. It may be hard to buy when everyone else is selling, but PepsiCo is continuing to deliver what long-term dividend investors want to see. Should you invest $1,000 in PepsiCo right now? Before you buy stock in PepsiCo, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and PepsiCo wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $653,427!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,119,863!* Now, it's worth noting Stock Advisor's total average return is 1,060% — a market-crushing outperformance compared to 182% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of August 4, 2025
Yahoo
6 hours ago
- Business
- Yahoo
Thirsty for Passive Income? PepsiCo's Dividend Yield Continues to Deliver.
Key Points Dividend investors usually want a mixture of high yield and dividend growth over time. PepsiCo is out of favor on Wall Street today, leaving it with a lofty yield. The consumer staples giant is also a Dividend King. 10 stocks we like better than PepsiCo › There are plenty of things to dislike about PepsiCo (NASDAQ: PEP) today, which is why some investors may want to pass it by. But if you are a dividend-focused investor, you should probably look at the many long-term positives here. Indeed, if history is any guide, the negatives keeping the stock depressed are highly likely to be short term in nature. Here's why PepsiCo can still satisfy investors with a thirst for dividends. PepsiCo is a very well-run business PepsiCo is one of the largest beverage makers on the planet, with its namesake brand leading the way. It is also the most important salty snack company, thanks to its Frito-Lay business. And it has a strong position in the packed food space with Quaker Oats. It is one of the most diversified food companies you can buy. It also easily competes with its peers. PepsiCo has a well-honed distribution system and a strong research and development (R&D) team. Its advertising might is on par with any of its competitors. And it is large enough to act as an industry consolidator, buying up-and-coming companies to quickly expand its brand portfolio. However, even well-run companies end up struggling once in a while. And today, PepsiCo is in a funk, lagging behind its closest peers on key financial metrics. For example, the 2.1% organic sales growth PepsiCo achieved in the second quarter of 2025 was less than half of the 5% achieved by its beverage-focused archrival Coca-Cola. Given the often myopic vision of Wall Street, PepsiCo's stock has fallen -- a lot. Even after a recent rally, PepsiCo's shares are down more than 25% from their 2023 highs. That's pushed the dividend yield up to a historically high 4% or so. Is PepsiCo's nosedive a sign of risk or an opportunity? So, when a stock price falls as far as PepsiCo's stock price has fallen, investors need to stop and take notice. Yes, PepsiCo is an industry laggard right now. But for investors who think in decades and not days, PepsiCo's stock looks incredibly cheap. The historically high yield hints at this, but the view is backed up by price-to-sales, price-to-earnings, and price-to-book value ratios that are all below their five-year averages. This is a big opportunity because PepsiCo has proven over time that it knows how to muddle through the rough periods so that it can excel over the long term. The biggest indication of this is the company's status as a Dividend King with over five decades of annual dividend increases under its belt. You can't build a track record like that by accident. It requires discipline, consistency, and a good business plan. What's interesting is that, despite the current headwinds the company is dealing with, the board of directors voted to increase the dividend in June 2025. The 5% increase is well above the historical growth rate of inflation and fairly impressive when you consider how negative investors are on the stock. Clearly, management and the board believe there are good things ahead for PepsiCo. High-yield PepsiCo is still delivering the goods For long-term dividend investors, the best time to buy stocks is often when they are facing problems that are likely to be short term in nature. That appears to be the case today with PepsiCo, noting that it recently bought a Mexican-American food maker and a probiotic beverage company to help modernize its brand portfolio. Given enough time, this Dividend King is likely to muddle through again, just like it has many times before. It may be hard to buy when everyone else is selling, but PepsiCo is continuing to deliver what long-term dividend investors want to see. Do the experts think PepsiCo is a buy right now? The Motley Fool's expert analyst team, drawing on years of investing experience and deep analysis of thousands of stocks, leverages our proprietary Moneyball AI investing database to uncover top opportunities. They've just revealed their to buy now — did PepsiCo make the list? When our Stock Advisor analyst team has a stock recommendation, it can pay to listen. After all, Stock Advisor's total average return is up 1,060% vs. just 182% for the S&P — that is beating the market by 877.64%!* Imagine if you were a Stock Advisor member when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $653,427!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,119,863!* The 10 stocks that made the cut could produce monster returns in the coming years. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of August 4, 2025 Reuben Gregg Brewer has positions in PepsiCo. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Thirsty for Passive Income? PepsiCo's Dividend Yield Continues to Deliver. was originally published by The Motley Fool Sign in to access your portfolio
Yahoo
a day ago
- Business
- Yahoo
5 Dividend Stocks to Hold for the Next 5 Years
Key Points Johnson & Johnson and PepsiCo are elite Dividend Kings. Realty Income has a terrific record of increasing its monthly dividend. Chevron and Brookfield Renewable have lots of fuel to continue increasing their attractive dividends. 10 stocks we like better than Realty Income › Dividend stocks can be great long-term investments. Many top dividend payers have long histories of increasing their payouts and delivering above-average total returns. Here are five excellent dividend stocks to consider holding for the next five years. 1. Brookfield Renewable Brookfield Renewable (NYSE: BEPC)(NYSE: BEP) is a leading global renewable energy producer. The company sells the clean power it generates under long-term, fixed-rate power purchase agreements (PPAs) with utilities and large corporate customers. These agreements produce stable and growing cash flows supported by inflation-linked rate increases. Growing power demand should benefit Brookfield over the next five years. The company expects to capture higher prices as legacy PPAs expire, complete a growing pipeline of renewable energy development projects, and make value-enhancing acquisitions. These catalysts should drive more than 10% compound annual growth in its per-share funds from operations (FFO) for the foreseeable future. That supports Brookfield's plan to increase its dividend by 5% to 9% annually. It has delivered at least 5% annual dividend growth for 14 straight years. With its dividend currently yielding more than 4%, and robust growth ahead, Brookfield could produce powerful total returns in the coming years. 2. Realty Income Realty Income (NYSE: O) is one of the world's largest real estate investment trusts (REITs). It owns a diversified portfolio of high-quality properties leased to many of the world's leading companies. The REIT's long-term net leases provide it with very durable cash flow because tenants cover all property operating costs, including routine maintenance, real estate taxes, and building insurance. The landlord pays a monthly dividend currently yielding over 5.5%. Realty Income has increased its payment 131 times since coming public in 1994. Acquisitions drive its steadily rising dividend. With an elite balance sheet and strong excess free cash flow after paying dividends, Realty Income has ample financial flexibility to continue growing its portfolio and dividend. And, with over $14 trillion of real estate suitable for net leases across the U.S. and Europe, it has a very long growth runway ahead. 3. Johnson & Johnson Johnson & Johnson (NYSE: JNJ) has one of the healthiest financial profiles in the world. It boasts a pristine credit rating (AAA) due to its fortress balance sheet and strong free cash flow. Last year, the company produced $20 billion in free cash flow even after spending heavily on research and development (it's one of the world's top R&D investors). That was more than enough to cover its 3%-yielding dividend ($11.8 billion paid out last year). The company has been using its strong free cash flow and balance sheet to make strategic acquisitions ($15 billion deployed over the past year). The healthcare giant's substantial R&D spending and strategic acquisitions should drive continued earnings and cash-flow growth in the coming years. That should enable Johnson & Johnson to maintain its magnificent record of dividend increases. The company extended its growth streak to 63 years in a row earlier this year, keeping its place in the elite group of Dividend Kings, which are companies with 50 or more years of consecutive annual dividend increases. 4. PepsiCo PepsiCo (NASDAQ: PEP) is also a Dividend King. The beverage and snacking giant extended its dividend growth streak to 53 straight years earlier this year. The company currently offers a dividend yield of around 4%. The iconic consumer brands company is investing heavily to expand its manufacturing capacity, increase innovation, and boost its productivity. These investments should help support rising revenues (4%-6% annual long-term organic growth target) and earnings (high single digits). The company aims to complement its organic growth investments with strategic acquisitions that accelerate its strategic portfolio transformation toward healthier food and beverage options (e.g., Poppi, Seite, and Sabra). These growth drivers should enable PepsiCo to continue increasing its dividend. 5. Chevron Chevron (NYSE: CVX) has increased its dividend for 38 straight years, including at a peer-leading rate over the past decade. That's impressive for a company operating in the volatile oil sector. It showcases the durability of its portfolio and the strength of its financial profile. The oil giant anticipates a growth spurt over the next year. Recently completed and upcoming expansion projects, along with its acquisition of Hess, should add $12.5 billion to its free-cash-flow total next year. Meanwhile, the Hess deal enhanced and extended its production and free-cash-flow growth outlook into the 2030s. Combine that with its strong balance sheet and resilient portfolio, and Chevron is in an excellent position to continue increasing its 4.5%-yielding dividend in the future. Great dividend stocks to hold for the long haul High-quality dividend stocks, such as Brookfield Renewable, PepsiCo, Chevron, Johnson & Johnson, and Realty Income, are ideal long-term holdings. They pay attractive and growing dividends, which should enable them to deliver strong total returns over the long term. Should you invest $1,000 in Realty Income right now? Before you buy stock in Realty Income, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Realty Income wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $653,427!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,119,863!* Now, it's worth noting Stock Advisor's total average return is 1,060% — a market-crushing outperformance compared to 182% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of August 4, 2025 Matt DiLallo has positions in Brookfield Renewable, Brookfield Renewable Partners, Chevron, Johnson & Johnson, PepsiCo, and Realty Income. The Motley Fool has positions in and recommends Chevron and Realty Income. The Motley Fool recommends Brookfield Renewable, Brookfield Renewable Partners, and Johnson & Johnson. The Motley Fool has a disclosure policy. 5 Dividend Stocks to Hold for the Next 5 Years was originally published by The Motley Fool Sign in to access your portfolio
Yahoo
2 days ago
- Business
- Yahoo
CFOs On the Move: Week ending Aug. 8
This story was originally published on To receive daily news and insights, subscribe to our free daily newsletter. Eric Christel | Bloomin' Brands Bloomin' Brands, the parent company of restaurant chains Outback Steakhouse and Bonefish Grill, named as executive vice president and CFO-elect. Christel was most recently senior vice president and chief financial officer of The Campbell's Company's snacks division. He was previously the CFO of the Americas at the marketing agency Dentsu and also held leadership roles at PepsiCo from 2007 to 2020. Christel will take over as CFO early next month, succeeding Michael Healy, who will transition into the newly created role of executive vice president of strategy and transformation. Healy has been with Bloomin' Brands for over 16 years and has been finance chief since April 2024. Earlier roles include chief financial officer of Outback Steakhouse and president of Bonefish Grill. Kevin Cook | Bumble will take over as finance chief of online dating and networking app Bumble on Aug. 12. Most recently, Cook was chief financial officer of Cloudera, a hybrid cloud data and AI platform company. He was earlier vice president of strategic finance, corporate and business development at cybersecurity company Barracuda Networks and has held investment banking leadership roles at Cowen, Credit Suisse, Wachovia Securities and RBC Capital Markets. Cook replaces Ronald Fior, who has been interim CFO since March. Cook will serve in an advisory role through the end of August. Steve Miller | Warby Parker Warby Parker's chief financial officer, , will step down on Oct. 1 to 'pursue another opportunity outside of the industry,' the company said in a Thursday press release. Miller joined Warby Parker in October 2011 as the eyewear brand and retailer's first CFO. Before that, he was chief financial officer and senior vice president of corporate development of data-driven research firm Majestic Research. Co-founder and co-CEO Dave Gilboa will assume the roles of principal financial officer and principal accounting officer on an interim basis until the company appoints Miller's successor. Graham O'Brien | ZoomInfo ZoomInfo has officially appointed as its permanent chief financial officer. O'Brien joined ZoomInfo in December 2017 as director of FP&A and has been interim CFO since September 2024. He has also been vice president of FP&A since January 2023. Before joining the market intelligence platform, he worked in accounting roles at RainKing Solutions and Kaseya. Michael Levitt | Pabst Brewing Company Pabst Brewing Company is shaking up its C-suite with the appointment of a new CEO, Greig DeBow, and an interim CFO, Michael Levitt. Levitt, a Pabst board member and partner in its parent company Blue Ribbon Partners, has over 30 years of experience in the corporate finance and asset management sectors. Levitt replaces Tim Tulfur, who joined the beer maker as finance chief in October 2022 from Heineken, where he held the same position. P.B. Balaji | Jaguar Land Rover Tata Motors group CFO has been appointed CEO of Jaguar Land Rover, the U.K.-based vehicle division of Tata Motors. Balaji, who has been the global CFO of the India-based automaker since 2017, will assume his new role in November. He previously served as the finance chief of Hindustan Unilever Limited for over nine years. Balaji succeeds Adrian Mardell, who will retire from Jaguar Land Rover after three years as CEO and 35 years with the company. Vaibhav Agarwal | RingCentral RingCentral promoted to finance chief. Agarwal has held several positions since joining the business communications provider in 2016, including as chief accounting officer, chief transformation officer and deputy chief financial officer. Before RingCentral, he held senior finance roles at Intel, Altera, Intuitive Surgical and PricewaterhouseCoopers. Agarwal succeeds Abhey Lamba, who joined the company as chief financial officer in December 2024 from Amazon Web Services, where he was vice president of finance, AWS Infrastructure. Lamba will continue as an executive adviser through the end of the year. Richard Wong | Fastly Fastly hired as the edge cloud platform's new chief financial officer, effective Aug. 11. Wong was most recently CFO at Benchling, a vertical SaaS company. He earlier worked at the home remodeling and design company Houzz, where he was its first CFO. Wong started his career as an investment banker at JP Morgan and Banc of America Securities, and also held senior finance roles at LinkedIn and Yahoo. Wong succeeds Ronald Kisling, who is leaving the company. Kisling will remain at Fastly in an advisory capacity through Sept. 15
Yahoo
3 days ago
- Business
- Yahoo
PepsiCo Stock: Is Wall Street Bullish or Bearish?
PepsiCo, Inc. (PEP) is a global leader in the food and beverage industry, headquartered in Purchase, New York. With a market cap of around $191.2 billion, the company operates in the Consumer Staples sector, specifically within the beverages-non-alcoholic industry. PepsiCo stock has posted a year-to-date decline of approximately 5.4%, while its 52-week performance also remained negative, down about 16.2%. This performance significantly lags the broader market, with the S&P 500 Index ($SPX) rising 7.8% YTD and 21.9% over the past year. More News from Barchart Robinhood Stock Seemingly Can't Be Stopped in 2025. Is It Too Late to Buy HOOD Here? Dear Ford Stock Fans, Mark Your Calendar for August 11 Cathie Wood Is Buying Shares of This Little-Known Ethereum Treasury Company. Should You? Get exclusive insights with the FREE Barchart Brief newsletter. Subscribe now for quick, incisive midday market analysis you won't find anywhere else. Also, within its own sector, PepsiCo's performance has not been promising, as the Consumer Staples Select Sector SPDR ETF (XLP) gained 4.6% YTD and around 5% over the past year. Major drivers behind PepsiCo's subdued performance include rising costs, sluggish volume growth, and a consumer shift away from packaged food and beverages in favor of fresher, healthier, or lower-cost alternatives. While PepsiCo has successfully implemented price hikes, this strategy is reaching its limits as elasticity begins to weigh on demand. In the longer term, concerns over health trends have also capped investor enthusiasm. However, the company's strong brand portfolio and global footprint continue to provide stability during broader market volatility. On July 24, the company declared a quarterly dividend of $1.4225 per share, representing a 5% increase from last year, payable on September 30, 2025, to shareholders of record as of September 5. This marks PepsiCo's 53rd straight annual dividend increase since 1965. However, shares declined marginally post announcement given the macroeconomic headwinds. Analysts project PEP to report an EPS decline of 1.7% year-over-year to $8.02, on a diluted basis, for the current fiscal year, ending in December 2025. The company has topped the earnings consensus estimate in three out of the four trailing quarters, while missing on another occasion. Among the 20 analysts covering PEP stock, the consensus rating is a 'Moderate Buy.' That's based on six 'Strong Buy,' 13 'Hold,' and one 'Strong Sell' ratings. The current configuration has remained consistent over the past few months. Last month, UBS Group AG (UBS) reaffirmed its 'Buy' rating on PepsiCo, citing improved confidence in the company's growth outlook. After Q2 earnings, UBS noted PepsiCo is now on a stronger trajectory, with potential for high single-digit bottom-line growth by 2026. While organic sales recovery may take time, the firm views PepsiCo's risk/reward profile as one of the most attractive in the sector. The mean price target of $152.05 represents 5.6% upside to PEP's current price, while the Street-high price target of $169 suggests an upside potential of 17.4%. On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
