10 Best Food Stocks To Buy According to Hedge Funds

6. PepsiCo, Inc. (NYSE:PEP)

Number of Hedge Fund Holders: 58

PepsiCo, Inc. (NYSE:PEP) is a global food and beverage giant, offering a diverse range of products under iconic brands like Lay’s, Doritos, Pepsi-Cola, Mountain Dew, and Quaker. The company operates in various segments, including North America, Europe, Africa, the Middle East, South Asia, and others. It is one of the best food stocks on our list.

PepsiCo, Inc. (NYSE:PEP)’s product portfolio spans a wide range of categories. Its core segments, Frito-Lay and PepsiCo Beverages dominate the snack and beverage markets, respectively. The company has also reached a definitive agreement to acquire Garza Food Ventures LLC, known as Siete Foods. Analysts believe this acquisition will improve the company’s portfolio by adding a genuine Mexican-American brand and expanding its range of healthier food options. This diversification strategy allows PepsiCo, Inc. (NYSE:PEP) to mitigate risks and maintain consistent growth, even when one segment faces challenges.

PepsiCo, Inc. (NYSE:PEP) is also recognized as a Dividend King, having consistently paid and raised its dividends for over 50 years. Over the past decade, the company’s dividend has more than doubled, significantly outpacing its peers. Recently, the company announced a 7% increase in its quarterly dividend to $1.36 per share, which equates to an annual dividend of $5.42. With a yield of 3.08%, this commitment to returning value to shareholders makes it an attractive investment option.