Core Viewpoint - PepsiCo is recognized as an elite dividend stock, having extended its dividend growth streak to 54 consecutive years, making it a member of the Dividend Kings group, which signifies companies that have increased their dividends for at least 50 years [2][11] Dividend Growth - PepsiCo's dividend yield is currently around 3.5%, significantly higher than the S&P 500's yield of 1.2%, making it an attractive option for passive income [2] - The company announced a 5% increase in its March dividend payment compared to the previous year and a 4% increase for the June payment, marking its 54th consecutive annual dividend increase [4] Financial Health - In the previous year, PepsiCo generated approximately $12.1 billion in operating cash flow, which comfortably covered its capital expenditures of $4.4 billion and dividend payments of $7.6 billion [5] - The company ended the year with about $9.5 billion in cash on its balance sheet, supporting its strong A+ credit rating [5] Future Cash Returns - PepsiCo anticipates returning $7.9 billion in dividends to investors in 2026, alongside a planned stock repurchase of $1 billion as part of a $10 billion repurchase program through early 2030 [7] Revenue and Earnings Growth - The company expects net revenue growth of 4% to 6% and organic revenue growth of 2% to 4% in 2026, which will support core earnings-per-share growth of 4% to 6% on a constant-current basis [8] - PepsiCo aims for long-term annual organic revenue growth of 4% to 6% and high single-digit earnings-per-share growth on a constant currency basis [9] Strategic Investments - The company is investing nearly 5% of its net revenue in 2026 to support growth, focusing on high-growth areas [9] - PepsiCo made strategic acquisitions, including the purchase of Poppi for $1.7 billion and increasing its stake in Celsius to 11% through a $585 million acquisition of convertible preferred stock [10]

Core Viewpoint - The article highlights five top dividend stocks that are expected to deliver strong total returns over the next five years, emphasizing their long histories of increasing payouts and above-average returns. Group 1: Brookfield Renewable - Brookfield Renewable is a leading global renewable energy producer with stable cash flows from long-term power purchase agreements (PPAs) [3] - The company anticipates over 10% compound annual growth in per-share funds from operations (FFO) due to growing power demand and strategic acquisitions [4] - Brookfield has delivered at least 5% annual dividend growth for 14 consecutive years, with a current dividend yield exceeding 4% [5] Group 2: Realty Income - Realty Income is one of the largest real estate investment trusts (REITs), owning a diversified portfolio of high-quality properties leased to major companies [6] - The REIT has increased its dividend 131 times since its public listing in 1994, currently yielding over 5.5% [7] - Realty Income has a significant growth runway with over $14 trillion of suitable real estate for net leases across the U.S. and Europe [8] Group 3: Johnson & Johnson - Johnson & Johnson boasts a strong financial profile with a AAA credit rating and generated $20 billion in free cash flow last year [9] - The company has a history of strategic acquisitions, deploying $15 billion over the past year, which supports its dividend growth [10] - Johnson & Johnson has extended its dividend growth streak to 63 years, maintaining its status as a Dividend King [10] Group 4: PepsiCo - PepsiCo has a dividend growth streak of 53 years and currently offers a dividend yield of around 4% [11] - The company is investing in manufacturing capacity and innovation, targeting 4%-6% annual long-term organic growth [11] - Strategic acquisitions are part of PepsiCo's plan to transform its portfolio towards healthier food and beverage options [12] Group 5: Chevron - Chevron has increased its dividend for 38 consecutive years, showcasing the strength of its financial profile [13] - The company expects a significant growth spurt, with completed and upcoming projects adding $12.5 billion to its free cash flow next year [14] - Chevron's acquisition of Hess enhances its production and free cash flow growth outlook into the 2030s, supporting its 4.5% dividend yield [14] Conclusion - High-quality dividend stocks like Brookfield Renewable, Realty Income, Johnson & Johnson, PepsiCo, and Chevron are positioned as ideal long-term holdings due to their attractive and growing dividends, which are expected to deliver strong total returns [15]