10 Best Dividend Monarchs to Invest in Now

6. PepsiCo, Inc. (NASDAQ:PEP)

Number of Hedge Fund Holders: 69

PepsiCo, Inc. (NASDAQ:PEP) is a New York-based food, snack, and beverage company. It benefits from a well-diversified business model, supported by its strong presence in the snack food sector, which opens up multiple avenues for growth. While Coca-Cola may hold a slight edge in terms of balance sheet strength, much of PepsiCo’s debt is tied to recent acquisitions. With inflation showing signs of easing and recession risks being reassessed by financial institutions, the likelihood of interest rate cuts increases—an environment that could work in PepsiCo’s favor, given its debt load.

In fiscal 2024, PepsiCo, Inc. (NASDAQ:PEP) reported solid financials, with revenue reaching $91.8 billion, up slightly from $91.4 billion the year before. Operating profit rose to $12.8 billion, compared to $11.9 billion in 2023, and net income totaled $9.6 billion. Looking ahead to fiscal 2025, the company anticipates low single-digit organic revenue growth and mid-single-digit growth in core EPS on a constant currency basis.

During FY24, PepsiCo, Inc. (NASDAQ:PEP) generated $12.5 billion in operating cash flow and plans to return about $7.6 billion to shareholders through dividends. The company currently offers a quarterly dividend of $1.355 per share and has a dividend yield of 3.78%, as of April 15. In February, the company marked its 53rd consecutive annual dividend increase, which makes it one of the best Dividend Monarchs on our list.