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Is PepsiCo (PEP) the Best Consumer Staples Dividend Aristocrat Right Now?

PepsiCo, Inc. (NASDAQ:PEP) is included among the 11 Best Dividend Aristocrat Stocks to Invest in Now.

A close up of a glass of a refreshing carbonated beverage illustrating the company’s different beverages.

Analysts believe that the company has significant growth potential, supported by long-term trends in the snack industry, expansion in promising beverage categories such as energy drinks, and increasing demand across emerging regions, including Latin America, Africa, and Asia-Pacific. The company’s integrated business model also enhances its ability to bring products to market efficiently.

Consumer demand for snacks and beverages typically holds steady throughout different economic conditions, and PepsiCo, Inc. (NASDAQ:PEP)’s extensive supply chain helps it manage operations effectively while limiting the impact of external disruptions.

PepsiCo, Inc. (NASDAQ:PEP) leads the $242 billion global savory snacks market with well-known brands like Lay’s, Cheetos, and Doritos. It also ranks as the second-largest beverage company in the world, just behind Coca-Cola.

The company’s strong business also supports its dividend. PepsiCo, Inc. (NASDAQ:PEP) has raised its payouts for 53 years in a row. Currently, it offers a quarterly dividend of $1.4225 per share and has a dividend yield of 4.34%, as of June 27.

While we acknowledge the potential of PEP as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 10 Best Stocks to Buy For Dividends and 15 Best Dividend Stocks of 2025

Disclosure. None.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

This prediction might not be bold at all:

A few years from now, you’ll wish you’d owned this stock.

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