How Stable Are Its Dividends?

PepsiCo, Inc. (NASDAQ:PEP) is included among the 10 Best Passive Income Stocks to Buy Now.

A close up of a glass of a refreshing carbonated beverage illustrating the company’s different beverages.

The company’s earnings in the first quarter of 2025 came in strong, with its revenue of $17.9 billion beating estimates by $190 million. In its earnings report, the company noted that its operations stayed resilient despite the growing complexity of geopolitical and macroeconomic challenges in the first quarter. Looking ahead, management anticipates increased volatility and uncertainty, especially concerning global trade, which is likely to drive up supply chain costs. In addition, consumer demand remains muted across several markets, with the outlook continuing to be uncertain.

PepsiCo, Inc. (NASDAQ:PEP) is a Dividend King with 53 consecutive years of dividend growth under its belt. The company’s quarterly dividend comes in at $1.4225 per share and has a dividend yield of 4.19%, as of July 10.

PepsiCo, Inc. (NASDAQ:PEP) is a worldwide leader in the food and beverage industry, involved in producing, marketing, and distributing a diverse range of products around the globe. The company is recognized for its well-known brands such as Pepsi, Frito-Lay, Gatorade, and Quaker Oats, offering popular snacks, drinks, and other food items.

While we acknowledge the potential of PEP as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

Disclosure: None.