Core Insights - The article emphasizes the importance of dividend-focused investing, highlighting that dividends have historically contributed significantly to total returns in the stock market [4]. Company Analysis Altria - Altria Group Inc. is a major player in the tobacco industry, offering a 6.12% dividend yield and primarily selling cigarettes under the Marlboro brand [5]. - The company sold 35 million shares of Anheuser-Busch InBev, representing 18% of its holdings, and announced a $2.4 billion stock repurchase plan [6]. - Goldman Sachs has rated Altria as a Buy with a target price of $72 [6]. Clorox - Clorox Co. provides a reliable 4.04% dividend yield and is known for its consumer and professional cleaning products [7]. - The company operates through four segments, including Health and Wellness and Household products [8]. - Jefferies has rated Clorox as a Buy with a target price of $151 [9]. Kimberly-Clark - Kimberly-Clark Corp. has a 4.66% dividend yield and has raised its dividend for 53 consecutive years [10]. - The company announced an acquisition of Kenvue Inc. for $48.7 billion, expected to close in the second half of 2026 [14]. - Argus has rated Kimberly-Clark as a Buy with a target price of $120 [14]. PepsiCo - PepsiCo, Inc. reported solid third-quarter earnings with a 3.36% dividend yield and is trading at 18 times forward earnings [15]. - Activist investor Elliott Investment Management has taken a $4 billion stake in PepsiCo, aiming to unlock value through strategic changes [16]. - UBS has rated PepsiCo as a Buy with a target price of $190 [17]. Verizon - Verizon Communications Inc. offers a 5.62% dividend yield and trades at 9.13 times its estimated 2026 earnings [18]. - The company operates in two segments, providing a range of communication services to consumers and businesses [19][20]. - TD Cowen has rated Verizon as a Buy with a target price of $51 [20].

HUNGRY & THIRSTY FOR GROWTH Ramon Laguarta Chairman & CEO Steve Schmitt CFO 2026 SAFE HARBOR STATEMENT & NON-GAAP INFORMATION Safe Harbor Statement Statements in this communication that are "forward - looking statements," including our guidance and long - term targets, are based on currently available information, operating plans and projections about future events and trends. Terminology such as "aim," "anticipate," "believe," "drive," "estimate, " "expect," "expressed confidence," "forecast," "future," "g ...

Core Viewpoint - PepsiCo's stock has been stagnant for five years, but activist investor Elliott Investment Management believes there is a clear path for improvement following its $4 billion stake acquisition, representing approximately 2% ownership in the company [1][2]. Activist Investor Influence - Activist investors like Elliott acquire significant stakes to influence company operations and address solvable issues, often targeting underperforming companies with strong brands [4]. - Elliott's involvement in companies like Honeywell demonstrates how a relatively small stake can lead to substantial changes, such as splitting the company into separate entities to unlock value [6][7]. Pepsi's Potential - Elliott's 75-page report praises Pepsi's diverse portfolio and international reach, highlighting that the stock is undervalued compared to the S&P 500 Consumer Staples index [8]. - The report criticizes Pepsi's margin erosion in North American snacks and beverages, attributing it to strategic missteps and operational inefficiencies [9][11]. Proposed Changes - Elliott suggests several strategies to revitalize Pepsi's North American business, including focusing on beverage branding, optimizing the bottler network, and improving management and asset allocation [10]. - The report indicates that if Pepsi can shift organic revenue growth from low single digits to mid single digits, it could see at least 50% upside in its stock value [10]. Current Progress - Despite challenges, Pepsi has made strides in its food and snack segments by adapting to consumer preferences and focusing on health-conscious products [15]. - The company has already begun implementing some of Elliott's suggestions, which could serve as a catalyst for further positive changes [16]. Investment Appeal - Pepsi is characterized as a high-yield stock with a P/E ratio of 17.7 and a dividend yield of 4%, having increased its dividend for 53 consecutive years [17]. - Following a period of stagnation, there are signs of improvement in Pepsi's performance, and upcoming earnings calls may provide further insights into the company's direction [18][19].