Is PepsiCo (PEP) One of the 10 Best Dividend Stocks to Buy for Passive Income?

PepsiCo, Inc. (NASDAQ:PEP) is included among the 10 Best Dividend Stocks to Buy for Passive Income.

Is PepsiCo (PEP) One of the 10 Best Dividend Stocks to Buy for Passive Income?

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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.

While we acknowledge the risk and potential of PEP as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than PEP and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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