15 Best Dividend Stocks To Buy and Hold

8. PepsiCo, Inc. (NASDAQ:PEP)

Number of Hedge Fund Holders: 58

PepsiCo, Inc. (NASDAQ:PEP) is a global food and beverage company that produces a wide range of popular products. The company has achieved consistent growth in both revenue and profit through its focus on expansion and acquisitions, despite being seen as a defensive stock with slower growth. This stability, along with its ability to manage inflationary pressures, positions the company as a reliable investment during economic downturns. However, in 2024, the stock faced significant pressure as investors shifted their attention to higher-growth opportunities. External factors such as deglobalization and concerns about the adoption of GLP-1 drugs further contributed to the challenges. As a result, the stock has declined by over 16% in the past 12 months.

That said, PepsiCo, Inc. (NASDAQ:PEP) has delivered stable earnings in FY24. The company’s revenue for the year came in at $91.8 billion, up from $91.4 billion in FY23. Its operating profit came in at $12.8 billion, compared with $11.9 billion a year ago. Its net income also showed growth at $9.6 billion. The company expects to achieve low-single-digit organic revenue growth and mid-single-digit core constant currency EPS growth in 2025.

PepsiCo, Inc. (NASDAQ:PEP) reported an operating cash flow of $12.5 billion in FY24. On February 3, the company declared a 5% hike in its annual dividend to $5.69 per share. This marked the company’s 53rd consecutive year of dividend growth, which makes PEP one of the best dividend stocks on our list. In FY25, the company expects to return approximately $7.6 billion to shareholders through dividends. The stock supports a dividend yield of 3.78%, as of February 4.

As per Insider Monkey’s database of Q3 2024, 58 hedge funds owned stakes in PepsiCo, Inc. (NASDAQ:PEP), down from 65 in the previous quarter. These stakes are collectively valued at over $4.44 billion. Ken Fisher’s Fisher Asset Management was the company’s leading stakeholder in Q3.