Top 5 Dividend Stocks to Buy According to Billionaire Cliff Asness

3. PepsiCo, Inc. (NASDAQ:PEP)

AQR Capital Management’s Stake Value: $909,344,328

Dividend Yield as of June 19: 4.17%

On July 18, Deutsche Bank lowered its price recommendation on PepsiCo, Inc. (NASDAQ:PEP) to $168 from $173. It reiterated a Buy rating on the shares. The move came ahead of the company’s fiscal second-quarter earnings report. The firm said it is “more cautious” heading into the results, noting that the recovery thesis for PepsiCo Foods North America following the first quarter “appears to be stagnating.” According to the analyst, early-quarter trends pointed to “encouraging momentum” after the business returned to positive volume growth in the first quarter. Still, consumption trends slowed through late April and May, the analyst said in a research note.

Earlier, on June 12, TD Cowen lowered its price goal on PepsiCo to $150 from $165. It maintained a Hold rating on the stock. The firm reduced its second-quarter organic growth forecast to below consensus expectations, citing weak retail trends in the U.S. TD Cowen also lowered its fiscal 2027 earnings-per-share growth estimate to 5%, pointing to the timing of commodity cost inflation as a factor.

PepsiCo, Inc. (NASDAQ:PEP) manufactures, markets, distributes, and sells a wide range of beverages and convenience foods worldwide.