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Why PepsiCo (PEP) Remains One of the Most Promising Dividend Stocks for Long-Term Investors
Yahoo Financeยท 2025-10-11 20:50
Core Insights - PepsiCo, Inc. (NASDAQ:PEP) is recognized as one of the most promising dividend stocks according to Wall Street analysts [1] - The company is a major player in the global snacks and beverages market, leading the savory snack segment and ranking as the second-largest beverage maker after Coca-Cola [2] Business Strengths - PepsiCo has a diversified portfolio that includes carbonated drinks, bottled water, sports and energy beverages, and ready-to-eat snacks, which together account for approximately 55% of its revenue [3] - The company's international operations contribute roughly 40% of total sales and operating profits in 2024, highlighting its strong global presence [3] Operational Efficiency - To enhance efficiency and support long-term growth, PepsiCo is closing underutilized plants, improving its enterprise resource planning (ERP) systems, and adopting artificial intelligence to streamline operations [4] - The company is also finding cost savings in procurement to free up capital for reinvestment in new product innovation, reflecting a disciplined approach aimed at improving margins while maintaining growth potential [4] Dividend Consistency - PepsiCo has a strong track record of dividend consistency, having raised its dividend for 53 consecutive years, with a current quarterly payout of $1.4225 per share, yielding about 4.10% as of October 8 [5]