Dividend Growth and Stability: PepsiCo's (PEP) Strength in the Consumer Staples Sector

PepsiCo, Inc. (NASDAQ:PEP) is included among the 12 Best Dividend Aristocrat Stocks to Invest in Right Now.

PepsiCo, Inc. (NASDAQ:PEP) is a leading global packaged food and beverages company with a wide range of top brands. Its beverage portfolio includes Pepsi, Mountain Dew, and Gatorade, and its food division has well-known brands such as Lay’s, Doritos, Quaker Oats, and Cheetos.

Lately, PepsiCo, Inc. (NASDAQ:PEP) has encountered challenges, specifically in North America, where volume declined for both snacks and beverages. Inflation and consumer trends are pushing a lot of people to stop buying snacks and sugary drinks. Meanwhile, the increasing popularity of healthier eating habits, along with weight-loss drugs, has also been weighing on demand for conventional products. The stock is down by almost 7% since the year 2025 started.

PepsiCo, Inc. (NASDAQ:PEP) is adjusting its approach to the value initiative amid consumer pressure, but these offerings will be product and channel-specific rather than company-wide in terms of generic promotions. On the other hand, the strong performance of its international operations has outweighed domestic weakness and has further strengthened the company’s pricing power.

In addition, PepsiCo, Inc. (NASDAQ:PEP)’s dividend policy makes it an attractive choice for income investors. The company has a quarterly dividend amount of $1.4225 per share and a dividend yield of 4.06% as of September 26. PEP has been raising its payouts for 53 years running, which makes it one of the most reliable dividend aristocrat stocks to invest in.

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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Disclosure: None.