Pepsico A Dividend Stock

Pepsico A Dividend Stock by Andrew Blumer last updated on July 01, 2026

PepsiCo: A Dividend Stock To Buy And Hold

If your primary investment goal is to have income, then you can't ignore dividend stocks. The beauty of these stocks is that they also pay dividends every quarter, regardless of how the stock market is performing.

One such stock is PepsiCo, which has been around since 1965! When we talk about dividend stocks, the first name that comes to mind is Coca-Cola, as it has been paying dividends for 64 years.

PepsiCo Dividend Yield Is 4.1%

However, one small detail many miss is that Coca-Cola's dividend yield is only 2.6%. On the other hand, PepsiCo has a dividend yield of 4.1%.

If we look at history, PepsiCo has been raising its dividend yield for 54 years in a row. The best part is that PepsiCo raises its dividends regardless of the economic situation or the problems faced by the company.

A quick look at data shows that organic revenue in the last quarter was up by 2.6% y/y. PepsiCo achieved it with smart pricing strategies and product innovation.

The company has also started to clearly highlight that Lays potato chips are made with healthy oils. It has also started to offer low-sugar versions for its sports drink 'Gatorade'.

A look at the chart of PepsiCo stock shows it hit a bottom back in 2025. Since then, the PepsiCo stock has made a comeback, but its performance is still not that good.

However, analysts think the weakness in PepsiCo stock price has little to do with the company's finances or growth rate. In reality, people are flocking to aggressive growth stocks like Nvidia and Micron.

When we consider the company's financials and its strong dividend yield, it is clear that PepsiCo stock is a very good option. Of course, PepsiCo won't appeal to people who are used to 3-digit or 4-digit capital gains.

But for investors who want stable dividends over the years and somewhat predictable performance, PepsiCo stock is the answer.