5 Dividend Stocks Redditors Buy for Early Retirement

4. PepsiCo, Inc. (NASDAQ:PEP)

Number of Hedge Fund Holders: 60

Dividend Yield as of March 11: 2.80%

PepsiCo, Inc. (NASDAQ:PEP) is a New York-based multinational beverage corporation that markets its products worldwide. PepsiCo, Inc. (NASDAQ:PEP) is a favorite stock of several Redditors for early retirement, since they have gained consistently from PepsiCo, Inc. (NASDAQ:PEP)’s steady dividend growth over the years. 

On February 10, PepsiCo, Inc. (NASDAQ:PEP) announced a 7% increase in its annualized dividend to $4.60 per share from $4.30 per share, effective with the dividend expected to be paid in June 2022. This represents the company’s 50th consecutive annual dividend per share increase.

Elite hedge funds hold large stakes in PepsiCo, Inc. (NASDAQ:PEP). In the December quarter, 60 funds were bullish on PepsiCo, Inc. (NASDAQ:PEP), compared to 61 funds in the prior quarter. Total stakes held in Q4 2021 amounted to $4.64 billion. Fundsmith LLP is the largest shareholder of the company, with 10.4 million shares worth $1.80 billion. 

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.”