10 Best Consumer Staples Dividend Stocks To Invest In

2. PepsiCo, Inc. (NASDAQ:PEP)

Number of Hedge Fund Holders: 69

PepsiCo, Inc. (NASDAQ:PEP) is a leading food and beverage company that produces a wide range of popular products. The company maintained steady earnings in FY24, reporting revenue of $91.8 billion, slightly up from $91.4 billion in the previous year. Operating profit rose to $12.8 billion, compared to $11.9 billion in FY23, while net income also increased to $9.6 billion. Looking ahead to 2025, the company anticipates low-single-digit growth in organic revenue and mid-single-digit growth in core constant currency EPS.

Despite being viewed as a defensive stock with slower growth, PepsiCo, Inc. (NASDAQ:PEP) has steadily increased its revenue and profit by prioritizing expansion and acquisitions. Its resilience, coupled with effective management of inflationary pressures, makes it a dependable investment during economic downturns. However, in 2024, the stock came under considerable pressure as investors favored higher-growth opportunities. Additional challenges arose from external factors, including deglobalization and concerns surrounding the adoption of GLP-1 drugs.

PepsiCo, Inc. (NASDAQ:PEP) declared a 5% hike in its annual dividend to $5.69 per share on February 3. Through this increase, the company stretched its dividend growth streak to 53 years, which makes it one of the best dividend stocks on our list. The stock has a dividend yield of 3.52%, as of February 24. In FY24, the company generated an operating cash flow of $12.5 billion. In FY25, the company expects to return approximately $7.6 billion to shareholders through dividends.