Building a Dividend Stock Portfolio: PepsiCo’s (PEP) Stability and Growth Potential

PepsiCo, Inc. (NASDAQ:PEP) is included among the Best Stocks for a Dividend Stock Portfolio.

Building a Dividend Stock Portfolio: PepsiCo’s (PEP) Stability and Growth Potential

PepsiCo, Inc. (NASDAQ:PEP) drew attention on Sept. 2 when activist investor Elliott Investment Management revealed a $4 billion position in the snack and beverage leader, representing about a 2% ownership stake.

Shares of PepsiCo, Inc. (NASDAQ:PEP) have slipped nearly 6% since the beginning of 2025, reflecting stalled earnings growth and limited momentum in recent quarters. Elliott’s move has fueled speculation, but the broader investment case hinges more on what the company could achieve going forward rather than its current performance. As a result, some investors may choose to remain cautious and adopt a wait-and-see stance.

In this environment, PepsiCo, Inc. (NASDAQ:PEP)’s dividend offers relief to income investors. The company is a Dividend King, having raised its dividends for 53 consecutive years. It currently offers a quarterly dividend of $1.4225 per share and has a dividend yield of 4.02%, as of September 18.

While we acknowledge the potential of PEP as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than PEP and that has a 100x upside potential, check out our report about the cheapest AI stock.

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Disclosure: None.