UBS Reaffirms Buy Rating on PepsiCo (PEP), Sees Stronger Productivity Driving Growth

Core Insights - PepsiCo, Inc. (NASDAQ: PEP) is recognized as one of the 15 Dividend Stocks that have consistently raised payouts for over 20 years [1] - UBS has reaffirmed a Buy rating on PepsiCo with a price target of $172.00, highlighting confidence in the company's initiatives to enhance performance [2] - The company has a strong track record of dividend growth, with a quarterly dividend of $1.4225 per share and a dividend yield of 3.74% as of October 16 [4] Group 1 - UBS noted that PepsiCo's management is focused on reviving growth in the North American segment, which is a top priority for the company [2] - Improvements in productivity capabilities have been observed compared to earlier in the year, which are expected to lead to stronger profitability [3] - UBS believes that operational gains will support better financial outcomes in both the short and medium term, despite ongoing reinvestment in the business [3] Group 2 - PepsiCo's impressive 53-year track record of consecutive dividend growth makes it a favorite among dividend investors [4]