5 Beverage Stocks to Buy Now Despite Economic Headwinds

2. PepsiCo, Inc. (NASDAQ:PEP)

Number of Hedge Fund Holders: 62

PepsiCo, Inc. (NASDAQ:PEP) is an American multinational beverage giant. On July 20, PepsiCo, Inc. (NASDAQ:PEP) announced the conclusion of a new $1.25 billion 10-year green bond. The company will use the proceeds to finance eligible green projects such as sustainable packaging, decarbonization of operations and supply chain, and water sustainability. 

2022 marks the 50th year of consistent dividend increases by PepsiCo, Inc. (NASDAQ:PEP), which makes the company a reliable dividend king. PepsiCo, Inc. (NASDAQ:PEP) declared a $1.15 per share quarterly dividend, which is payable on September 30 to shareholders of record as of September 2.

On July 8, Morgan Stanley analyst Dara Mohsenian said he is optimistic about PepsiCo, Inc. (NASDAQ:PEP) ahead of its Q2 report, predicting “solid” sales, above consensus earnings, and a reaffirmation of fiscal year guidance. The analyst sees PepsiCo, Inc. (NASDAQ:PEP)’s longer-term top-line growth being “sustainably above what’s priced in by the market” and maintained an Overweight rating and a $198 price target on the stock.

Among the hedge funds tracked by Insider Monkey, 62 hedge funds were bullish on PepsiCo, Inc. (NASDAQ:PEP) at the end of Q1 2022, up from 60 funds in the prior quarter. Terry Smith’s Fundsmith LLP is the leading position holder in the company, with 7.80 million shares worth $1.30 billion. 

ClearBridge Investments mentioned PepsiCo, Inc. (NASDAQ:PEP) in its Q4 2021 investor letter. Here is what the firm has to say:

“The pandemic created opportunities for us to be more aggressive in a variety of areas of the market. We were opportunistic throughout the year. After a strong year for equities, we sought to bolster more defensive areas of the portfolio and added to PepsiCo, increasing our exposure to a high-quality and stable name.”