Stock market sell-offs can be challenging for investors. Market volatility can make it tough to make new investments and keep the ones you already have due to the fear that they could lose value. However, I see sell-offs as opportunities to buy high-quality companies at lower valuations. I especially like to purchase top-notch dividend stocks during downturns, because dividend yields move in the opposite direction as stock prices. Because of that, I can lock in an even better income stream. One dividend sto ...

Like an open can of soda left out overnight, PepsiCo (PEP -3.18%) stock has lost its fizz lately -- it's down by about 15% over the past year at the time of this writing. Though it has delivered consistent earnings growth, the combination of muted guidance for the year ahead and rising uncertainties about the outlook for the U.S. economy are weighing on the beverages and packaged foods giant.Does the stock's current weakness point to more downside ahead, or are there good reasons for investors to stay optim ...

PepsiCo, Inc. (PEP) Q1 2025 Earnings Conference Call April 02, 2025 07:30 AM ET Company Participants Robbie Pamnani - Senior Vice President, Investor RelationsOperator - Conference Call OperatorJamie Caulfield - Executive Vice President and CFORamon Laguarta - Chairman and CEOGreg (on behalf of Robert Ottenstein) - Evercore ISI Conference Call Participants Lauren Lieberman - Analyst, BarclaysBonnie Herzog - Analyst, Goldman SachsCamille Gargiola - Analyst, JefferiesDarren Mosinian - Analyst, Morgan StanleyB ...

PepsiCo, Inc. (PEP) has encountered a notable resistance level, prompting caution among investors from a technical standpoint. PEP has been trading below the 200-day simple moving average (SMA) for quite some time now, which suggests a bearish trend. Closing at $149.94, PEP remains below its 200-day SMAs of $159.46, indicating a possible sustained downward trend. Image Source: Zacks Investment Research PepsiCo has shown a lackluster performance, with its shares plummeting 12.5% over the past year against th ...

Group 1 - The core investment thesis for PepsiCo is its attractive 3.7% dividend yield, which is significantly higher than the average yield of 2.6% for consumer staples and 1.2% for the S&P 500, making it appealing for dividend investors [3][4] - PepsiCo's current dividend yield is at the high end of its historical range, indicating that the stock is historically undervalued based on traditional valuation metrics like price-to-sales and price-to-earnings ratios, which are below their five-year averages [4][5] - As a Dividend King, PepsiCo has a strong track record of 52 consecutive annual dividend increases, showcasing its commitment to returning value to shareholders [5] Group 2 - PepsiCo has a robust and diversified business model, being a leader in the salty snack food market and the second-largest beverage maker in the U.S., which helps it maintain stability during economic fluctuations [6][7] - The company's market capitalization of approximately $200 billion provides it with scale advantages, a vast distribution network, and an industry-leading marketing team, further solidifying its position in the consumer staples sector [8] Group 3 - Despite facing growth challenges post-pandemic, PepsiCo is actively adapting its strategy to maintain growth, including recent acquisitions such as Sabra, Siete, and Poppi, which align with its long-term growth objectives [9][10][11] - The company's proactive measures to navigate current market conditions suggest a strong likelihood of returning to growth, as it has successfully managed similar challenges in the past [12]

Nearly a quarter through 2025, the S&P 500 (^GSPC -1.97%) is down year to date -- a noticeable step change after the index posted back-to-back 20% annual gains in 2023 and 2024.Some investors may be looking for companies with compelling valuations that could be good buys even during a period of market turbulence, while others may be gravitating toward passive income opportunities.Here's why PepsiCo (PEP -0.26%) is a dream value and income stock to buy in April. Navigating a slowdownPepsi stock is hovering a ...

PepsiCo's NASDAQ: PEP nearly-$2-billion purchase of prebiotic soda maker Poppi is a reminder of the value consumers place on their beverages of choice. While Poppi has built its brand as a gut health-friendly drink, even more traditional sodas and energy drinks may be having a moment. The S&P 500 may be down nearly 2% year-to-date (YTD) as of Mar. 25, but three major beverage companies—Celsius Holdings Inc. NASDAQ: CELH, Monster Beverage Corp. NASDAQ: MNST, and Keurig Dr Pepper Inc. NASDAQ: KDP—are all up d ...

I buy a lot of dividend stocks each year. They provide me with passive income that I use to buy more shares of dividend-paying companies. Dividend stocks have also historically produced much higher returns than non-dividend payers, with less volatility. One dividend stock I can't seem to buy enough of right now is PepsiCo (PEP 0.71%). I've bought shares several times this year and will likely continue adding to my position. Here's why I've been loading up on Pepsi stock.A satisfying income streamPepsiCo has ...

Core Viewpoint - PepsiCo is experiencing its worst decline in years, with a 25% drop since its all-time high in 2023, marking the largest fall since the financial crisis of 2007-2009 [2][6] Group 1: Growth and Revenue - PepsiCo's growth has increasingly relied on price increases since the COVID-19 pandemic, with organic revenue growth of 2% in 2024, but a 1% decline in volumes [4][5] - The price of snacks and beverages has risen significantly, with potato chips up 44% and soda prices up 33% since January 2020, indicating inflation-driven growth rather than increased sales volume [3][4] Group 2: Financial Health - Despite the decline in share price, PepsiCo maintains a strong financial position with a dividend payout ratio of approximately 65% of 2025 earnings estimates and $9.2 billion in cash [6][7] - The company is recognized as a Dividend King, having raised dividends for 52 consecutive years, which remains attractive to investors [6][7] Group 3: Market Valuation - The stock's price-to-earnings ratio and long-term growth estimates have fallen to multiyear lows, prompting caution regarding valuation [8][9] - The dividend yield has increased to 3.7%, the highest ever, providing immediate income for investors amid lower growth expectations [9][10] Group 4: Future Outlook - While growth may slow, PepsiCo's established brands and market presence suggest modest growth and incremental dividend increases are still likely [7][10] - The current valuation at nearly 21 times earnings is considered high for expected growth rates of 4% to 5%, leading to a recommendation for a more appealing price-to-earnings ratio closer to 15 to 17 [9][10]

Core Viewpoint - The article discusses the lack of positions held by Parkev Tatevosian, CFA, and The Motley Fool in the mentioned stocks, emphasizing their disclosure policy and potential compensation for promoting services [1] Group 1 - Parkev Tatevosian has no position in any of the stocks mentioned [1] - The Motley Fool also has no position in any of the stocks mentioned [1] - There is a disclosure policy in place regarding potential compensation for promoting services [1]