Why PepsiCo (PEP) Is Among the Best Long-Term Dividend Stocks to Invest in Right Now

Insider Monkey12-13

We recently compiled a list of the 12 Best Long-Term Dividend Stocks to Invest in Right Now. In this article, we are going to take a look at where PepsiCo, Inc. (NASDAQ:PEP) stands against the other ...

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(NASDAQ:PEP) stands against the other ...</p>\n\n<a href=\"https://finance.yahoo.com/news/why-pepsico-pep-among-best-200739210.html\">Source Link</a>\n\n</div>\n","source":"yahoofinance","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Why PepsiCo (PEP) Is Among the Best Long-Term Dividend Stocks to Invest in Right Now</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nWhy PepsiCo (PEP) Is Among the Best Long-Term Dividend Stocks to Invest in Right Now\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-12-13 04:07 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/why-pepsico-pep-among-best-200739210.html><strong>Insider Monkey</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>We recently compiled a list of the 12 Best Long-Term Dividend Stocks to Invest in Right Now. In this article, we are going to take a look at where PepsiCo, Inc. (NASDAQ:PEP) stands against the other ...</p>\n\n<a href=\"https://finance.yahoo.com/news/why-pepsico-pep-among-best-200739210.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"PEP","symbol_name":"百事可乐","start_time":0,"source_url":"https://finance.yahoo.com/news/why-pepsico-pep-among-best-200739210.html","article_id":"2491414351","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/bGwsULNev_xVHZuUN9yRZQ--~B/aD0xMDgwO3c9MTkyMDthcHBpZD15dGFjaHlvbg--/https://media.zenfs.com/en/insidermonkey.com/3587380c0d18c8e8073f212a970e1aef"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2491414351","pubTimestamp":1734034059,"columns":[],"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"We recently compiled a list of the 12 Best Long-Term Dividend Stocks to Invest in Right Now. In this article, we are going to take a look at where PepsiCo, Inc.  stands against the other best dividend stocks for the long term.The allure of steady income remains a top priority, come rain or shine in the market and for that, investors often prioritize stable companies. High-quality stocks provide investors with the opportunity to earn through dividends while also benefiting from potential price growth fueled by increasing earnings. According to a report by Hartford Funds, dividends have been a major contributor to the returns investors have enjoyed over the past several decades. Since 1960, reinvested dividends and the impact of compounding have accounted for 85% of the cumulative total returns of the broader market.","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":["earning"],"viewcount":null,"language":"en","relate_stocks":{"PEP":"百事可乐"},"translate_title":"为什么百事可乐(PEP)是目前最值得投资的长期股息股票之一","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"PEP":1},"content_text":"We recently compiled a list of the 12 Best Long-Term Dividend Stocks to Invest in Right Now. In this article, we are going to take a look at where PepsiCo, Inc. (NASDAQ:PEP) stands against the other best dividend stocks for the long term.\nThe allure of steady income remains a top priority, come rain or shine in the market and for that, investors often prioritize stable companies. High-quality stocks provide investors with the opportunity to earn through dividends while also benefiting from potential price growth fueled by increasing earnings. According to a report by Hartford Funds, dividends have been a major contributor to the returns investors have enjoyed over the past several decades. Since 1960, reinvested dividends and the impact of compounding have accounted for 85% of the cumulative total returns of the broader market.\nBefore exploring the long-term benefits of dividend stocks, let’s take a look at how dividend investing has performed in recent years. The year 2024 has been particularly notable for dividends, with several major tech companies introducing quarterly payouts to shareholders in the first quarter. In addition, the sustained inflows into dividend-focused ETFs, even during challenging years like 2024, are a positive sign. This suggests that dividend investing may rely less on chasing performance compared to other strategies. Furthermore, US companies are on pace to set a new record for total dividend payments by year-end. This trend has left analysts optimistic about the future potential of dividend investing.\nOver the long term, companies that pay dividends have demonstrated a remarkable history of delivering strong total returns. Data from the French Data Library, highlighted in a June report by Morningstar, showed that dividend-paying stocks outperform those that don’t, with high-yield stocks being the top-performing income segment in the US equity market since 1927. The reasons for this include the elimination of speculative companies, the financial discipline imposed on corporate managers by regular dividend payments, and the advantage of the “value effect,” where stocks with lower valuations tend to outperform over time.\nREAD ALSO:\n   8 Best American Dividend Stocks To Buy Right Now\nSteven Wieting, who serves as the chief investment strategist at Citi Wealth, expressed the view that high-quality dividend-paying stocks across different sectors have the potential to deliver better performance than the broader market in the coming years. During a conversation with Barron’s, he highlighted that an increasing dividend provides a clear advantage to shareholders while also reflecting the financial strength of companies with robust balance sheets. He remarked that dividends are a reliable indicator since they cannot be fabricated.\nThat said, maintaining consistent dividend growth over time requires both financial stability and a strong commitment. Stocks that focus on dividend growth have historically outperformed the market, thanks to their potential for capital appreciation and robust financial health. The Dividend Aristocrats Index, which includes companies that have increased their dividends for at least 25 consecutive years, has provided shareholders with a remarkable return of 10.68% from its inception in 2005 through 2023, according to ProShares. In contrast, the broader market returned only 10.05% during the same period. Notably, the dividend aristocrats achieved these impressive returns with lower volatility, recording a volatility rate of 15.30%, compared to the benchmark's 16.24%. This demonstrates that investing in dividend growth stocks can offer both stability and attractive returns over time.\n ja-san-miguel-xYSp0kkIUio-unsplash \nOur Methodology\nTo compile this list, we thoroughly reviewed reputable sources such as Forbes, Morningstar, Barron’s, CNBC, Times, and Business Insider. We aimed to identify the top long-term dividend stocks recommended by financial media, analysts, and experts. From our research, we picked 12 dividend stocks which are the most popular in the financial media these days. These stocks have strong dividend histories and are financially sound, indicating their ability to sustain dividend payments well into the future. The list is ranked in ascending order of the number of hedge fund investors, according to Insider Monkey’s database of 900 hedge funds as of Q3 2024.\nWhy are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points. (see more details here).\nPepsiCo, Inc. (NASDAQ:PEP)\nNumber of Hedge Fund Holders: 58\nPepsiCo, Inc. (NASDAQ:PEP) is an American food, snack, and beverage company, headquartered in New York. The company stands out particularly in the salty snack market, with its Frito-Lay division being the leading player in the snack industry. Much like its beverage business, Frito-Lay benefits from PepsiCo's scale, distribution network, marketing expertise, and innovation, driving both business and profit growth. in addition, the company's Quaker Oats division, which produces packaged food products, plays a significant role in the consumer food sector. While PepsiCo faces competition from other large companies in this space, it remains one of the most vital partners for retailers globally, including grocery and convenience stores.\nPepsiCo, Inc. (NASDAQ:PEP) delivered solid earnings in the third quarter of 2024, generating revenues exceeding $23.3 billion. Despite facing challenges such as weaker performance in North America, ongoing issues from product recalls at Quaker Foods North America, and disruptions due to increasing geopolitical tensions in some international markets, the company remained resilient. Effective cost management helped maintain profitability, while the company continued to make strategic investments to strengthen its position in the market.\nGiven these ongoing challenges, PepsiCo, Inc. (NASDAQ:PEP) now anticipates a modest, low-single-digit rise in organic revenue, a reduction from its earlier projection of around 4% growth. Despite these setbacks, the company remains focused on its commitment to shareholders, aiming to return $8.2 billion to investors through dividends and share buybacks in 2024.\nPepsiCo, Inc. (NASDAQ:PEP) is one of the best dividend stocks on our list as the company has been growing its payouts for 52 consecutive years. The company's quarterly dividend currently comes in at $1.355 per share and has a dividend yield of 3.46%, as of December 11.\nAccording to Insider Monkey's database of Q3 2024, 58 hedge funds held stakes in PepsiCo, Inc. (NASDAQ:PEP), compared with 65 in the previous quarter. The consolidated value of these stakes is more than $4.44 billion.\nOverall, PEP ranks 5th on our list of the best long-term dividend stocks to invest in right now. While we acknowledge the potential for PEP to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than PEP but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. \nREAD NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.\nDisclosure: None. This article is originally published at Insider Monkey.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"1","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.4","shortVersion":"4.29.4","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2491414351"}