15 Best Dividend Aristocrat Stocks with Over 3% Yield

6. PepsiCo, Inc. (NASDAQ:PEP)

Dividend Yield as of March 29: 3.63%

PepsiCo, Inc. (NASDAQ:PEP) is an American food, snack, and beverage company, headquartered in New York. The company posted strong earnings in the FY24, with revenues coming in at $91.8 billion, up from $91.4 billion in 2023. Its operating profit also grew to $12.8 billion from $11.9 billion in FY23. The company reported a net income of $9.6 billion. For FY25, it expects low single-digit organic revenue growth and mid-single-digit growth in core constant currency EPS.

PepsiCo, Inc. (NASDAQ:PEP) has expanded over the years, following its strategy of continuous acquisitions. The company recently announced the acquisition of poppi, which is a prebiotic soda brand. This would mark PepsiCo’s entry into the functional soda market and would expand its portfolio with ‘better-for-you’ options.

PepsiCo, Inc. (NASDAQ:PEP) has a strong cash position, which makes it one of the best dividend aristocrat stocks on our list. In FY24, the company generated $12.5 billion in operating cash flow. It also plans to return around $7.6 billion to shareholders through dividends in the upcoming fiscal year. The company offers a quarterly dividend of $1.355 per share and has a dividend yield of 3.63%, as recorded on March 29. In February, PEP achieved its 53rd consecutive annual dividend hike, becoming a reliable choice for investors.

Insider Monkey’s database of Q4 2024 indicated that 69 hedge funds held stakes in PepsiCo, Inc. (NASDAQ:PEP), up from 58 in the previous quarter. The consolidated value of these stakes is more than $4.5 billion. With over 5.6 million shares, Fundsmith LLP was one of the company’s most prominent stakeholders at the end of Q4.