PepsiCo, Inc. (NASDAQ:PEP) has been recognized as one of the 12 Most Promising Dividend Stocks According to Wall Street Analysts.
PepsiCo, Inc. (NASDAQ:PEP) is a globally recognized brand and a significant player in the international snacks and beverages industry. This corporation leads the savory snacks category and is the second-largest beverage producer, following Coca-Cola.
A key advantage for PepsiCo, Inc. (NASDAQ:PEP) is its extensive and varied portfolio that encompasses carbonated drinks, bottled water, energy and sports beverages, and ready-to-eat snacks, which collectively contribute to approximately 55% of its revenue. Additionally, the company possesses a robust global footprint, with international operations generating about 40% of total sales and operating profits for 2024.
To enhance efficiency and foster sustainable growth, PepsiCo, Inc. (NASDAQ:PEP) has been shutting down underperforming plants, upgrading its enterprise resource planning (ERP) systems, and leveraging artificial intelligence to optimize operations. Furthermore, the company is identifying cost-saving opportunities in procurement to allocate additional capital toward innovative product development. These steps demonstrate a methodical approach aimed at improving profit margins while sustaining growth potential.
Moreover, PepsiCo, Inc. (NASDAQ:PEP) is distinguished by its consistent dividend policy. The company has successfully increased its dividend for 53 consecutive years and currently provides a quarterly payout of $1.4225 per share, translating to a yield of roughly 4.10% as of October 8.
While PEP presents itself as an appealing investment option, we believe that some AI stocks might offer more substantial upside potential with lower associated risks. For investors interested in an undervalued AI stock positioned favorably by recent tariffs and the trend of reshoring domestic production, explore our complimentary report on the best short-term AI stock.
CHECK OUT: 14 Best Food Dividend Stocks To Buy According to Analysts and Dividend Champions List: Top 15 Stocks to Buy.
Disclosure: None.
