This Dividend King Stands Out as a Long-Term Favorite

PepsiCo, Inc. (NASDAQ:PEP) is one of the best dividend stocks for a bear market.

In uncertain times, investing in a dividend-paying stock that has seen a significant drop in price can be a smart move, provided the company’s long-term fundamentals remain strong.

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

PepsiCo, Inc. (NASDAQ:PEP) fits that description well. Despite a nearly 14% decline in its share price since the beginning of 2025, the company maintains its reputation as a Dividend King, with 53 consecutive years of dividend increases. The latest boost, which was a 5% rise, was announced alongside its Q4 2024 earnings. Such a consistent track record reflects a solid business strategy that performs well regardless of market conditions.

PepsiCo, Inc. (NASDAQ:PEP) dividend history speaks to its disciplined management and operational strength. However, recent challenges have emerged. In April, the company lowered its annual profit outlook, citing rising production costs and weaker consumer spending, pressures linked to economic uncertainty stemming from wide-reaching tariffs introduced by President Donald Trump.

Even so, analysts view these issues as temporary. Once the broader economic environment stabilizes, demand is expected to recover.

PepsiCo, Inc. (NASDAQ:PEP) currently offers a quarterly dividend of $1.4225 per share and has a dividend yield of 4.4%, as of June 17.

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.

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