5 Best Dividend Stocks to Buy According to Diamond Hill Capital

3. PepsiCo, Inc. (NASDAQ:PEP)

Diamond Hill Capital’s Stake Value: $538,121,000

An American multination food and snack company, PepsiCo, Inc. (NASDAQ:PEP) is one of the strongest dividend payers in the U.S. market. In 2022, the company extended its dividend growth streak to 50 years, and has a 5-year dividend CAGR of 7.39%. The company currently pays a quarterly dividend of $1.15 per share, with the stock’s dividend yield coming in at 2.65% as recorded on August 31.

PepsiCo, Inc. (NASDAQ:PEP) was the fourth-largest holding of Diamond Hill Capital on June 30, representing 2.35% of its portfolio. The hedge fund owned over 3.2 million shares in the company with a total value of $538 million. The firm has been investing in the company since 2010.

In August, Morgan Stanley mentioned PepsiCo, Inc. (NASDAQ:PEP) in its investors’ note, expecting the company to outperform in the upcoming quarters and maintaining its ‘Overweight’ rating on the stock.

With stakes worth over $5.2 billion, 65 hedge funds tracked by Insider Monkey’s database owned positions in PepsiCo, Inc. (NASDAQ:PEP) in Q2. In the previous quarter, 62 hedge funds owned PEP stakes worth $4.86 billion.

ClearBridge Investments mentioned PepsiCo, Inc. (NASDAQ:PEP) in its Q2 2022 investor letter. Here is what the firm had to say:

“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.”