5 Best Dividend Stocks to Buy for Passive Income

2. PepsiCo, Inc. (NASDAQ:PEP)

Number of Hedge Funds: 72

Dividend Yield as of June 26: 4.19%

On June 25, Jefferies lowered its price recommendation on PepsiCo, Inc. (NASDAQ:PEP) to $162 from $164. It reiterated a Hold rating on the stock. In its Q2 earnings preview, the firm said PepsiCo’s year-to-date performance in the U.S. has “underwhelmed.” It also said that Q2 “does not appear to be an inflection point.” The analyst noted that this places greater importance on the company’s performance in the second half of the year.

On the same day, BofA lowered its price goal on PEP to $164 from $173. It maintained a Neutral rating on the shares. Ahead of the company’s Q2 earnings report, the firm reduced its Q2 and full-year 2026 EPS estimates. The analyst said the revisions reflect weaker-than-expected performance at PepsiCo Foods North America during the quarter and expectations that the recovery will take longer and extend into the second half of the year.

PepsiCo, Inc. (NASDAQ:PEP) is a multinational food and beverage company that manufactures, markets, and distributes a broad portfolio of well-known snacks, beverages, and convenient food products.