5 Best Dividend Aristocrat Stocks To Buy Heading Into Recession

3. PepsiCo, Inc. (NASDAQ:PEP)

Number of Hedge Fund Holders: 65

Dividend Yield as of September 27: 2.77%

Number of Years of Consecutive Dividend Growth: 50

PepsiCo, Inc. (NASDAQ:PEP) is one of the best defensive dividend aristocrat stocks to buy heading into recession. 50 years of back-to-back dividend increases lend PepsiCo, Inc. (NASDAQ:PEP) a lot of credibility as well. On July 21, the company announced a $1.15 per share quarterly dividend. The dividend is payable on September 30, to shareholders of record on September 2. PepsiCo, Inc. (NASDAQ:PEP)’s dividend yield on September 27 came in at 2.77%. 

On August 22, Morgan Stanley analyst Dara Mohsenian told investors that he continues to see clear top-line upside at PepsiCo, Inc. (NASDAQ:PEP), which should lead to EPS upside and continued stock outperformance. The analyst maintained an Overweight rating on PepsiCo, Inc. (NASDAQ:PEP).

According to Insider Monkey’s data, 65 hedge funds were long PepsiCo, Inc. (NASDAQ:PEP) at the end of June 2022, compared to 62 funds in the last quarter. Terry Smith’s Fundsmith LLP is the leading stakeholder of the company, with over 7 million shares worth $1.2 billion. 

Here is what ClearBridge Large Cap Value ESG Fund has to say about PepsiCo, Inc. (NYSE:PEP) in its Q2 2022 investor letter:

“Also in the stable and predictable cash flow camp, though with a very different business model, global food and beverage company PepsiCo (NYSE:PEP) reported very strong organic growth in the first quarter, driven by healthy price/mix, and raised revenue guidance, while holding EPS guidance. Notably, its beverage business showed expanding margins.”