5 Dividend Growth Stocks Popular on Robinhood

3. PepsiCo, Inc. (NASDAQ:PEP)

Dividend Yield as of April 4: 2.54%

Number of Years of Consecutive Dividend Increases: 50

Number of Hedge Fund Holders: 60

PepsiCo, Inc. (NASDAQ:PEP) is an American multinational corporation that markets and distributes beverages and convenient foods worldwide. PepsiCo, Inc. (NASDAQ:PEP) is a significant dividend king, which yields above the industry average of 1.89%. 

On February 10, PepsiCo, Inc. (NASDAQ:PEP) reported its Q4 results. The company posted earnings per share of $1.53, exceeding estimates by $0.01. Revenue over the period jumped 12.44% year-over-year to $25.25 billion, outperforming market consensus by $1.01 billion. The company also authorized a share repurchase program worth $10 billion. 

PepsiCo, Inc. (NASDAQ:PEP) increased its quarterly dividend to $1.075 per share on February 2. The dividend was paid on March 31, to shareholders of the company as of March 4. The stock delivers a dividend yield of 2.54% as of April 4. 

JPMorgan analyst Andrea Teixeira on March 30 reiterated an Overweight rating on PepsiCo, Inc. (NASDAQ:PEP) and lowered the firm’s price target to $180 from $185. With the ongoing Russia/Ukraine conflict and its impact on commodities, the analyst slashed estimates for most of the companies in the beverages and personal care sectors. However, Teixeira noted that demand would remain solid. 

Among the hedge funds tracked by Insider Monkey, 60 funds were bullish on PepsiCo, Inc. (NASDAQ:PEP) in the fourth quarter of 2021, holding combined stakes worth $4.6 billion. Yacktman Asset Management is a notable shareholder of the company, owning 4.45 million shares valued at roughly $774 million. 

Here is what Saturna Capital Amana Funds has to say about PepsiCo, Inc. (NASDAQ:PEP) in its Q4 2021 investor letter:

“Given the likelihood of rising inflation and interest rates ahead, we anticipate adjustments to the portfolio to reduce exposure to highly valued stocks dependent on low interest rates to support terminal year valuations, while seeking investments in companies more correlated with a return to economic normalcy. We sold our positions in Pepsi. We believe Pepsi to be a well-run firm, but its products are not in keeping with an ESG mandate. Additionally, it has entered a joint venture to produce and distribute alcoholic beverages, making it ineligible for the portfolio.”