7 Best Beverage Stocks that Pay Dividends

4. PepsiCo, Inc. (NASDAQ:PEP)

Number of Hedge Funds Holders: 65

PepsiCo, Inc. (NASDAQ:PEP) is engaged in the manufacturing, marketing, and sale of multiple beverages and convenient foods worldwide. It also distributes alcoholic beverages, juices, and sparkling water.

PepsiCo, Inc. (NASDAQ:PEP) reported net revenue of $22.5 billion in Q2 2024. This reflected a year-over-year increase of 0.8%. Moreover, the company also delivered an organic revenue growth of 1.9%. The Quaker Foods North American business decreased by 60 basis points as it was majorly impacted by product recalls and subdued sector performance.

Furthermore, the Frito-Lay profit margin declined by 3% in the quarter. This is driven by persistent inflationary pressures and higher borrowing costs which have also made customers more value conscious.

However, PepsiCo Beverages North America delivered 1% organic revenue growth. Moreover, the core operating margin improved for the fourth consecutive quarter. The growth was mainly accelerated by Pepsi and Mountain Dew, as their diet variants with zero sugar performed well. PepsiCo, Inc. (NASDAQ:PEP) reported strong performance in the international business as organic revenue increased by 5.5%. This growth was driven by considerable performance in the Europe and AMESA divisions.

PepsiCo, Inc. (NASDAQ:PEP)’s financial health remained strong with $6.4 billion in cash and equivalents. It is also planning to return $8.2 billion to its shareholders in FY24. The stock saw an increase of 3.33% over the past month. It is one of the best beverage stocks on our list as the company has raised its payouts for 52 years in a row.

In July 2024, PepsiCo, Inc. (NASDAQ:PEP) Europe and Yara partner announced a long-term partnership to decarbonize the food value chain. However, it is experiencing challenges from local soda makers in Muslim-majority countries amidst boycotts.

Despite the unfavorable circumstances, PepsiCo, Inc. (NASDAQ:PEP) has stood its ground with improved international sales. Thus, analysts predict an upside of 4.07% in the share price. Moreover, 65 hedge funds have invested $4.3 billion in the company as of Q2 2024, as per Insider Monkey’s database.