It's not often that the stock market's cyclicality brings on value deals with the potential of making a life- changing return for investors, yet when those opportunities come about, they can be sure these will likely be short-lived as more capital starts to chase the diminishing opportunities of a value investment. Today, there are three names (big enough in the United States economy) that would fit this description for investors to consider. Representing, in part, the retail sector and directly tied to con ...

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]

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 ...