Why Investors Rely on PepsiCo (PEP) Among the Best Retirement Dividend Stocks

PepsiCo, Inc. (NASDAQ:PEP) is included among the 10 Best Dividend Stocks to Buy for Retirement.

The food, snack, and beverage company is garnering investors’ attention because of its solid earnings in the second quarter of 2025. During the quarter, the company gained an advantage from a softer US dollar, which helped boost its foreign exchange results. A weaker dollar increases the value of international revenue when converted back into US dollars. The company also experienced a stabilization in volume trends, with convenient foods seeing a 2% decline and beverage volumes remaining steady.

PepsiCo, Inc. (NASDAQ:PEP) has been concentrating on controllable areas by strengthening its marketing around key brands and offering more affordable options through varied packaging sizes. During its second-quarter earnings call, the company outlined several international cost-saving initiatives. These included shutting down two facilities to better match production with demand, cutting fixed expenses, enhancing its enterprise resource planning system, tightening travel and spending policies, reevaluating third-party contracts, and increasing overall efficiency.

PepsiCo, Inc. (NASDAQ:PEP) has been rewarding investors with growing dividends for the past 53 consecutive years. The company pays a quarterly dividend of $1.4225 per share and has a dividend yield of 3.98%, as of July 30.

While we acknowledge the potential of PEP as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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