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]

Group 1: Market Overview - U.S. stocks are currently experiencing volatility, with the S&P 500 down 3.6% year to date despite optimistic forecasts for 2025 [1] - High-performing tech stocks, particularly those involved in the AI sector, have faced significant struggles in the first quarter of the year [1] Group 2: Dividend Stocks as a Strategy - Dividend stocks can provide stability in uncertain market conditions, offering regular distributions to shareholders regardless of broader market performance [2] Group 3: PepsiCo (PEP) - PepsiCo offers a 3.7% dividend yield and trades at 17.5 times forward earnings, which is a discount compared to the S&P 500's 19.7 multiple [4] - The company has raised its dividend for 53 consecutive years, with a five-year dividend growth rate of 7.2%, surpassing the elite growth rate benchmark of 6% [5] - PepsiCo's diversified portfolio in beverages and snacks helps mitigate risks from changing consumer preferences and supports consistent dividend growth [6][7] - The company's global distribution network and strategic acquisitions enhance its competitive position and relevance in evolving markets [8] Group 4: McDonald's (MCD) - McDonald's is recognized as a major real estate company that operates a fast-food chain, justifying its premium valuation of 24.8 times forward earnings [9] - The company has a current yield of 2.3%, but its dividend growth rate has been 7.4% annually over the past five years, potentially doubling the yield on original investment within a decade [10] - McDonald's unique business model, owning approximately 70% of its restaurant locations, provides a stable income stream through rent paid by franchisees, contributing to a moderate payout ratio of 59.5% [11][12] - The brand's global expansion and technology investments position it well for future growth while maintaining dividend security [13]

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]

Group 1: Market Overview - A stock market correction is defined as a 10% to 20% pullback from a peak, with the S&P 500 entering correction territory on March 13, marking the first occurrence since 2022 [1][2] Group 2: Investment Opportunities - During market corrections, shares of quality companies often become more attractive, providing better buying opportunities [2] - PepsiCo is currently trading at a 19% discount to its usual valuation, down about 25% from 2023 highs, with a price-to-earnings ratio of 21 compared to its historical average of 26 [4][5] - Ulta Beauty's stock is down nearly 40%, but it is still expected to earn $1.3 billion in operating income in the coming year, making it a cheap stock at a valuation of $16 billion [10][11] - PayPal's stock trades at just 17 times earnings, close to its historical lows, with expected ongoing improvements in transaction margins leading to potential earnings growth through 2027 [15] Group 3: Company-Specific Insights - PepsiCo has a strong portfolio, including a recent acquisition of Poppi for nearly $2 billion, and has increased its dividend for 53 consecutive years, with a current yield approaching 4% [3][6] - Ulta Beauty has over 1,400 locations and has shown resilience during economic downturns, with same-store sales growth during the Great Recession [8] - PayPal's recent stock performance is correlated with the broader fintech sector, and under new management, it is renegotiating contracts to improve transaction margins [12][14] Group 4: Conclusion - Pepsi, Ulta Beauty, and PayPal are identified as resilient businesses that have experienced stock price declines, presenting potential investment opportunities for investors looking to deploy cash [16]

PepsiCo (PEP -0.67%) is a company with more than 50 consecutive annual dividend increases under its belt. You don't achieve a feat like that by accident. It requires having a strong business model that gets executed well in both good times and bad.PepsiCo's recently announced purchase of Poppi for $1.95 billion is an example of the company's strong business model being executed well during bad times. It makes PepsiCo's stock look like a buy.PepsiCo is out of favorPepsiCo's dividend yield is 3.5% at this wri ...

To stay on top, the consumer giants need a player in every potential market.In this podcast, Motley Fool analyst David Meier and host Dylan Lewis discuss:February retail numbers showing continued consumer struggles, and why this upcoming retail earnings season will be a key read on the economy.Pepsi's planned $2 billion acquisition of the Poppi soda brand, whose drinks include apple cider vinegar and prebiotics (fibers that feed gut bacteria).The venture-capital-style of trend investing for consumer brands. ...

Core Viewpoint - Buying top dividend stocks near their 52-week lows can provide long-term investors with higher yields and potential for future capital appreciation Group 1: Target (TGT) - Target has faced challenges with declining sales due to reduced consumer discretionary spending, with a revenue drop of less than 1% to under $107 billion for the year ending Feb. 1 [4] - Despite the sales decline, Target maintains a strong profit margin, with a payout ratio around 50%, allowing for continued dividend increases; the current yield is 4.3% and the dividend has been raised by 70% over five years [5] - The stock has only increased by 2% over the past five years and is trading at 12 times trailing earnings, close to its 52-week low of $103.46, indicating potential for long-term investment despite short-term challenges [6] Group 2: PepsiCo (PEP) - PepsiCo has a 53-year streak of dividend increases, with a recent 7% hike, offering a current yield of 3.7%, which is significantly higher than the S&P 500 average of 1.4% [7] - The company reported flat sales of $91.9 billion in 2024, with concerns about the impact of GLP-1 weight loss drugs on consumer behavior; PepsiCo is adapting by acquiring healthier brands, such as Poppi for $2 billion [8] - PepsiCo shares have declined by 8% in the past year and are trading near their 52-week low of $141.51 at 22 times trailing earnings, presenting a potential buying opportunity [9] Group 3: Stanley Black & Decker (SWK) - Stanley Black & Decker has the longest dividend increase streak at 57 years, with a current yield exceeding 4%, making it attractive for income-focused investors [10] - The company has experienced sales declines over the past two years due to economic conditions affecting consumer spending on repairs and renovations; it is focusing on cost-cutting and debt reduction, with long-term debt at $5.6 billion [12] - Although the trailing earnings multiple is high at 43 due to restructuring charges, the forward price-to-earnings multiple is estimated at 15, and the stock is near its 52-week low of $77.70, suggesting it may be undervalued for long-term investors [13]

PepsiCo, Inc. (PEP) looks well-poised for growth on strength in its core categories, diversified portfolio, improved digital capabilities and flexible go-to-market distribution systems. PEP’s solid innovations are on track.In the latest revelation, PepsiCo has inked an agreement to acquire poppi, which is a fast-growing prebiotic soda brand, worth $1.95 billion. This amount comprises $300 million of estimated cash tax gains for a net purchase price of $1.65 billion.Details on PEP’s Latest Newspoppi combines ...

PepsiCo (PEP) announced on Monday its acquisition of the prebiotic soda brand Poppi for $1.95 billion, strengthening its presence in the growing functional beverage category. The move comes as the company faces declining demand for its traditional sodas and snacks amid consumers’ preference for health-conscious options. Shares of PEP gained about 1.9% on March 17, 2025.PepsiCo stated that the transaction includes $300 million in anticipated cash tax benefits, bringing the net purchase price to $1.65 billion ...