PepsiCo: The Dividend King Nobody’s Talking About

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You ever notice how nobody talks about PepsiCo? I mean, it’s right there, sitting on the list of 2025 Dividend Kings like some kind of wallflower at a bar mitzvah. Fifty-three years of raising dividends-fifty-three! That’s longer than most marriages last, and yet Wall Street acts like it’s invisible. You’d think with a track record like that, people would be lining up to buy this stock. But no, they’re too busy chasing whatever flashy tech startup promises to turn their toaster into a cryptocurrency miner.

And here’s the kicker-it’s not even expensive. Not anymore. Down nearly 25% from its 2023 highs? What is this, a clearance sale for one of the biggest consumer staples companies in the world? It’s practically screaming, “Buy me!” But does anyone listen? Of course not. Because apparently, if something isn’t complicated enough to require a PhD in blockchain theory, it’s just not worth paying attention to.

What Does PepsiCo Actually Do?

Okay, so let me explain this without using words that might confuse someone who thinks “synergy” is a type of yoga pose. PepsiCo makes stuff you eat and drink. Like Pepsi (duh), Frito-Lay chips, and Quaker Oats oatmeal. These aren’t exactly luxury items unless you count Cheetos as caviar, which-I don’t know, maybe some people do. Point is, these products are everywhere, and people love them. Seriously, have you ever met anyone who says, “Nah, I’ll pass on the Doritos”? Didn’t think so.

But here’s where things get interesting-or infuriating, depending on how you look at it. PepsiCo doesn’t just dominate one category; it spreads itself out across beverages, salty snacks, and packaged foods. This diversification thing they’ve got going on? Yeah, that’s why they’re still handing out dividends while other companies are busy figuring out whether their latest AI-powered widget actually works. And yet, despite all this, they can’t catch a break. Why? Because Coca-Cola had a good quarter. Oh, the humanity.

Why Is This Stock So Cheap Right Now?

Let’s talk numbers for a second because apparently, we’re supposed to care about those. The dividend yield is hovering around 3.8%, which-if you know anything about historical yields-is pretty juicy. And guess what? Their price-to-sales and price-to-book ratios are both below their five-year averages. Translation: This stock is cheaper than it should be. But wait! There’s more! The price-to-earnings ratio is close to average, but earnings are notoriously flaky, like that friend who always cancels plans last minute. Sales, book value, and dividends? Those stick around. So yeah, bargain alert.

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Now, here’s the part where you roll your eyes and say, “But Larry, what about the competition?” Fine, let’s address the elephant in the room. Coca-Cola crushed PepsiCo in organic sales growth during Q2 2025. Big deal. They take turns being better than each other every few years-it’s like watching two brothers argue over who gets to sit shotgun. Meanwhile, PepsiCo is quietly buying up Mexican-American food makers and probiotic drink companies like it’s shopping at Costco. Oh, and did I mention they now own 11% of Celsius Holdings? Energy drinks are hot right now, literally and figuratively.

Oh, and then there’s Elliott Investment Management. Activist investors swooping in like uninvited guests at a dinner party. Normally, I hate when outsiders stick their noses where they don’t belong, but in this case? Maybe they’re onto something. The stock jumped on the news, which tells me Wall Street finally woke up from its nap long enough to realize there’s potential here.

PepsiCo Isn’t Going to Fix Itself Overnight

Look, nobody’s saying PepsiCo is going to magically transform into the golden child overnight. These kinds of changes take time, like waiting for a table at a crowded restaurant when you didn’t make a reservation. But management seems to be doing everything right-buying companies, tweaking strategies, trying new things. It’s almost like they actually want to succeed. Crazy, right?

For long-term investors-the kind who care about dividends and steady growth instead of gambling on meme stocks-this could be a golden opportunity. Just don’t wait too long. Stocks like this tend to sneak up on you, like realizing you left your wallet at home after you’ve already ordered dessert. Trust me, I’ve been there.

So go ahead, give PepsiCo a closer look. Or don’t. Your loss. 😏

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2025-09-05 17:11