Retirement Stock Portfolio: 10 Safe Dividend Stocks to Buy Now

5. PepsiCo Inc. (NASDAQ:PEP)

Number of Hedge Fund Holders: 71

PepsiCo Inc. (NASDAQ:PEP) is among the best dividend stocks for a retirement stock portfolio. The stock made it to UBS’s list as a strong defensive investment. Its shares have dropped nearly 15% so far in 2025, but the stock offers a dividend yield of 4.4%.

While most analysts rate PepsiCo Inc. (NASDAQ:PEP) as a Hold, the average price targets suggest nearly 15% potential upside from its current trading level, according to LSEG data.

In May, PepsiCo Inc. (NASDAQ:PEP) increased its quarterly dividend by 5% to $1.4225 per share compared to the previous year. The company has consistently paid dividends since 1965 and celebrated its 53rd straight annual dividend increase this year.

Recently, PepsiCo Inc. (NASDAQ:PEP) has been expanding its portfolio, completing the $1.95 billion acquisition of probiotic soda brand Poppi last month, which includes $300 million in expected cash tax benefits.

PepsiCo Inc. (NASDAQ:PEP) is a leading global company in the food and beverage industry, involved in the production, marketing, and distribution of a broad variety of products. It is widely recognized for popular brands such as Pepsi, Lay’s, Doritos, Gatorade, and Quaker. The company’s operations span both the beverage and food sectors, with a presence in more than 200 countries and territories around the world.