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]

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. ...

Buying a top dividend stock when it's near its 52-week low can be an excellent move for long-term investors to consider. That's because it gives you the potential to benefit from a higher-than-usual yield, plus the possibility to cash in at a higher valuation in the future, assuming that the struggling stock bounces back. While not every stock will be a good buy in the long run, companies that routinely pay and increase their dividend payments will usually have solid financials, and that can make them good ...