5 Best Dividend Stocks to Buy According to Terry Smith

2. PepsiCo, Inc. (NASDAQ: PEP)

Smith’s Stake Value: $1,419,177,000
Percentage of Terry Smith’s 13F Portfolio: 4.51%
Dividend Yield: 2.94%
Number of Hedge Fund Holders: 61

PepsiCo, Inc. (NASDAQ: PEP) functions as a food and beverage company. The company was incorporated in 1898 is ranked second on the list of 10 best dividend stocks to buy according to Terry Smith. PepsiCo currently has a $202.28 billion market capitalization. It delivered a 12.18% return in the past 12 months.

PepsiCo is also a decent dividend-paying stock and has been paying dividend since 1973. On May 4, the company declared a quarterly dividend of $1.075 per share, which was a 5.1% increase from its prior dividend of $1.0225. On April 15, the company declared its earnings per share for the first quarter of 2021. It declared earnings of $1.21 per share, beating the market predictions by $0.09.

Fundsmith LLP owns 10.03 million shares of PepsiCo, worth $1.42 billion, making it the biggest stakeholder of the company. Smith’s hedge fund increased its stake in the company by 4% in the first quarter. The company is also getting attention of the smart money, as 61 hedge funds tracked by Insider Monkey reported owning stakes in the company in the first quarter of 2021, up from 56 funds a quarter earlier.