10 Best Dividend Kings Stocks to Invest in Now

8. PepsiCo, Inc. (NASDAQ:PEP)

Number of Hedge Fund Holders: 58

An American food, snack, and beverages company, PepsiCo, Inc. (NASDAQ:PEP) ranks eighth on our list of the best dividend kings. The company posted strong earnings in the third quarter of 2024, with revenues amounting to over $23.3 billion. Despite facing challenges such as weaker performance in North America, product recalls at Quaker Foods North America, and geopolitical issues in some international markets, the company showed resilience. By effectively managing costs, it maintained profitability while continuing to make strategic investments to strengthen its market position.

PepsiCo, Inc. (NASDAQ:PEP) has fallen by nearly 13% in the past 12 months. However, the company remained the investors’ favorite due to its strong market position. It owns Frito-Lay, the world’s largest salty snack producer, Pepsi, the second-largest nonalcoholic beverage brand, and Quaker Oats, a key player in the packaged food industry. With its extensive global brand presence, strong marketing and innovation capabilities, and solid financial foundation, the company is well-established as an industry leader and consolidator. For example, its recent acquisition of Siete Foods strengthens its foothold in the Mexican-American food market, covering salty snacks and packaged foods. Essentially, PepsiCo is a robust player in the consumer staples sector, known for its resilience during economic downturns.

PepsiCo, Inc. (NASDAQ:PEP) has adjusted its forecast for organic revenue growth, now anticipating a modest increase in the low single digits, compared to its previous estimate of around 4%. Despite this revision, the company remains committed to returning value to shareholders, with plans to distribute $8.2 billion through dividends and share buybacks in 2024. In addition, the company has a strong track record of increasing its payouts for 52 consecutive years. It offers a quarterly dividend of $1.355 per share and has a dividend yield of 3.75%, as of January 13.

As per Insider Monkey’s database of Q3 2024, 58 hedge funds in Insider Monkey’s database owned stakes in PepsiCo, Inc. (NASDAQ:PEP), compared with 65 in the previous quarter. The consolidated value of these stakes is over $4.44 billion. With over 7.8 million shares, Fisher Asset Management was the company’s leading stakeholder in Q3.