15 Best Blue-Chip Stocks with Growing Dividends

9. PepsiCo, Inc. (NASDAQ:PEP)

Number of Hedge Fund Holders: 68

PepsiCo, Inc. (NASDAQ:PEP) is among the best blue-chip stocks to invest in.

On December 11, Barclays raised its price target on PepsiCo, Inc. (NASDAQ:PEP) to $144 from $142, keeping an Equal Weight rating. The firm said the company “aimed to convey greater conviction and visibility” into its 2026 outlook, which mostly matches what the Street expects.

A few days earlier, on December 8, PepsiCo, Inc. (NASDAQ:PEP) reached an agreement with activist investor Elliott Investment Management. The deal focuses on cutting costs and lowering prices to give its food business a boost.

PepsiCo, the maker of Pepsi-Cola, Lay’s, and Doritos, said it will trim expenses across its food and beverage operations. It also plans to cut the number of individual products by 20% in its US businesses. Some food prices will be reduced next year to attract more customers.

PepsiCo, Inc. (NASDAQ:PEP) expects full-year organic revenue growth of 2% to 4% in 2026. The company noted it aims for results toward the high end of that range in the second half of the year. The agreement doesn’t give Elliott a seat on PepsiCo’s board, but the investor will continue to collaborate with the company.

PepsiCo, Inc. (NASDAQ:PEP)’s business covers the full food and beverage market. It handles manufacturing, distribution, and marketing for its wide range of products.