PepsiCo, Inc. engages in the manufacture, marketing, distribution, and sale of various beverages and convenient foods worldwide. The company operates through seven segments: Frito-Lay North America; Quaker Foods North America; PepsiCo Beverages North America; Latin America; Europe; Africa, Middle East and South Asia; and Asia Pacific, Australia and New Zealand and China Region. It provides dips, cheese-flavored snacks, and spreads, as well as corn, potato, and tortilla chips; cereals, rice, pasta, mixes and syrups, granola bars, grits, oatmeal, rice cakes, and side dishes; beverage concentrates, fountain syrups, and finished goods; ready-to-drink tea, coffee, and juices; dairy products; and sparkling water makers and related products, as well as distributes alcoholic beverages under Hard MTN Dew brand. The company offers its products primarily under the Lay's, Doritos, Fritos, Tostitos, BaiCaoWei, Cheetos, Cap'n Crunch, Life, Pearl Milling Company, Gatorade, Pepsi-Cola, Mountain Dew, Quaker, Rice-A-Roni, Aquafina, Bubly, Emperador, Diet Mountain Dew, Diet Pepsi, Gatorade Zero, Crush, Propel, Dr Pepper, Schweppes, Marias Gamesa, Ruffles, Sabritas, Saladitas, Tostitos, 7UP, Diet 7UP, H2oh!, Manzanita Sol, Mirinda, Pepsi Black, Pepsi Max, San Carlos, Toddy, Walkers, Chipsy, Kurkure, Sasko, Spekko, White Star, Smith's, Sting, SodaStream, Lubimyj Sad, Agusha, Chudo, Domik v Derevne, Lipton, and other brands. It serves wholesale and other distributors, foodservice customers, grocery stores, drug stores, convenience stores, discount/dollar stores, mass merchandisers, membership stores, hard discounters, e-commerce retailers and authorized independent bottlers, and others through a network of direct-store-delivery, customer warehouse, and distributor networks, as well as directly to consumers through e-commerce platforms and retailers. The company was founded in 1898 and is based in Purchase, New York.

PepsiCo выглядит качественным, но не дешёвым защитным бизнесом: сильные маржи и высокая рентабельность поддерживают оценку, однако мультипликаторы уже заметно выше отраслевых уровней. P/E около 24.7 и P/FCF почти 30 указывают на премию к рынку, а особенно высокий P/S и P/B говорят, что инвесторы уже закладывают в цену устойчивость брендов и стабильность денежного потока. При этом динамика эффективности в целом положительная: ROE, ROA, ROI, операционная и чистая маржа остаются высокими и в последние периоды держатся на комфортных уровнях. Валовая маржа около 54% и операционная маржа свыше 12% подтверждают способность компании перекладывать издержки в цены и защищать прибыльность. Выручка, EBITDA, операционная прибыль и чистая прибыль в абсолютном выражении остаются крупными и в целом растут по сравнению с более ранними периодами, что поддерживает фундаментальную устойчивость. С другой стороны, баланс не выглядит безрисковым: debt/equity выше отраслевой медианы, долгосрочный долг значителен, а текущая и быстрая ликвидность ниже комфортных уровней. Это не критично для PepsiCo как для зрелого потребительского лидера, но ограничивает пространство для агрессивной переоценки. Дивидендная доходность около 1% остаётся скорее символом качества и стабильности, чем сильным драйвером общей доходности. В совокупности фундаментал скорее оправдывает премию к сектору, но не настолько высокую, как сейчас подразумевают некоторые мультипликаторы. Поэтому целесообразно слегка снизить целевой ориентир, сохранив позитивный взгляд на компанию как на надёжный, но уже достаточно оценённый защитный актив.

PepsiCo, Inc.

Сильный индекс, значительно упал. Быки в растерянности.

Strong index, significantly down. The bulls are confused.

Слабый индекс, значительно упал. Медведи сохранили, но резко ослабили уверенность в своих позициях.

Weak index, significantly down. The bears retained but sharply weakened their confidence in their positions.

Сильный индекс, значительно вырос. Рынок на стороне быков.

Strong index, significantly up. The market is on the bulls' side.

Сильный индекс, значительно упал. Рынок не поддерживает медведей.

Strong index, significantly down. The market does not support the bears.

Средний индекс, значительно вырос. Приток средств в лонги резко увеличился и находится на высоком уровне.

Medium index, significantly up. The inflow of funds into longs has increased sharply and is at a high level.

Средний индекс, без изменений. Отток средств из шортов остается значительным.

Medium index, flat. The outflow of funds from shorts remains significant.

Сильная маржинальность и рентабельность PepsiCo поддерживают премию к сектору, но дорогие мультипликаторы и умеренная долговая нагрузка ограничивают апсайд.

Key Points
Most S&P 500 index funds are market-cap weighted.
An alternative approach is an equal-weighted fund.
Both can serve you well, and one looks less risky.
What's the investment I've recommended most often for most people? A low-fee exchange-traded fund (ETF) that tracks the S&P 500 index, such as the Vanguard S&P 500 ETF (NYSEMKT: VOO) or the SPDR S&P 500 ETF (NYSEMKT: SPY). I suspect many of my colleagues would say the same. Even Warren Buffett has recommended it. In his 2016 letter to shareholders, he noted, "Over the years, I've often been asked for investment advice... My regular recommendation has been a low-cost S&P 500 index fund."
So I'm sorry to point out that it's not a perfect kind of investment. It has some issues.
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What's wrong with the S&P 500?
Here's a big one: It's way more concentrated than most people realize. For example, check out its recent top 10 components:
Company
Weight in S&P 500
Nvidia
7.43%
Alphabet (A and C share classes)
6.59%
Apple
6.48%
Microsoft
4.35%
Amazon.com
3.92%
Broadcom
2.74%
Tesla
2.26%
Meta Platforms
2.17%
Micron Technology
1.65%
Berkshire Hathaway
1.56%
Those weightings may not seem huge until you remember that there are about 490 other companies. These 10 above represent about 2% of the index's holdings but 39% of its total value. So if you invest in the S&P 500 because it's a great way to be quickly and easily invested in 500 of America's biggest companies, you are invested in those companies, but more than a third of your investment is in these 10 companies alone.
Here are the weightings of some other companies:
Company
Rank in S&P 500
Weight in S&P 500
McDonald's
54
0.30%
PepsiCo
59
0.29%
Pfizer
80
0.22%
Kroger
261
0.06%
Clorox
468
0.02%
As you can see, you won't have much invested in the vast majority of the companies.
That can be OK, though. Maybe you like those tech heavyweights in the top 10 -- which include all of the "Magnificent Seven" stocks (Apple, Amazon, Alphabet, Meta Platforms, Microsoft, Nvidia, and Tesla). Maybe you want to invest in the 500 companies, with most of your money going to the biggest. After all, most of them have grown very rapidly over the past few years.
Keep in mind, though, that when there's a stock market crash or correction, as there invariably is now and then, those high-flying growth stocks are often the ones that fall harder. That, too, can be OK as long as you have a very long-term investing period. But it's not ideal.
Is there a better alternative to the S&P 500?
There is an alternative to standard S&P 500 index funds that's worth considering: An equal-weighted one. Standard ones are weighted by market cap, meaning the larger a company's market cap, the greater its weighting. The Invesco S&P 500 Equal Weight ETF (NYSEMKT: RSP), in contrast, is equal-weighted. The 500 components are rebalanced quarterly, so between rebalancings you'll see fluctuations in the weightings as various stocks gain or lose value from day to day and year to year. Check out its recent top 10 holdings:
Company
Weighting
Dell Technologies
0.48%
SanDisk
0.48%
Intel
0.42%
Advanced Micro Devices
0.42%
Humana
0.40%
Micron Technology
0.40%
Hewlett Packard Enterprise
0.40%
Seagate Technology
0.40%
ON Semiconductor
0.35%
Western Digital
0.35%
Note that Micron Technology appears in both top 10 lists, but in the earlier one, it has a 1.67% weighting, while in the fund above, it has a much lower weighting of 0.35%. This kind of index fund has you much more invested in the other 490 stocks beyond the top 10 -- though, of course, each stock has a relatively minor weighting. But every promising stock will have an equal chance of outperforming for you.
An equal-weighted S&P 500 ETF may not grow as fast as a market-cap-weighted one, but during a market downturn, it may hold its value a bit more. Over the past 15 years, this ETF has averaged annual gains of about 12%, while the Vanguard S&P 500 ETF has averaged 14.4%. There's a trade-off, but it's not enormous. Give equal-weighted S&P 500 index funds some consideration.
Should you buy stock in Vanguard S&P 500 ETF right now?
Before you buy stock in Vanguard S&P 500 ETF, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Vanguard S&P 500 ETF wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $433,268!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,259,391!*
Now, it’s worth noting Stock Advisor’s total average return is 935% — a market-crushing outperformance compared to 206% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
Selena Maranjian has positions in Advanced Micro Devices, Alphabet, Amazon, Apple, Berkshire Hathaway, Broadcom, Meta Platforms, Micron Technology, Microsoft, Nvidia, and Pfizer. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Amazon, Apple, Berkshire Hathaway, Broadcom, Hewlett Packard Enterprise, Intel, Meta Platforms, Micron Technology, Microsoft, Nvidia, Pfizer, Tesla, Vanguard S&P 500 ETF, and Western Digital. The Motley Fool recommends Kroger and ON Semiconductor and recommends the following options: long January 2028 $320 calls on McDonald's and short January 2028 $340 calls on McDonald's. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Have S&P 500 Index Funds, Often Touted as the Best Stock Investments, Become Dangerous? There's a Worrisome Development -- and a Possibly Better Alternative.

Key Points
Coca-Cola is an evergreen dividend stock.
It’s trading at a discount to the S&P 500.
Coca-Cola (NYSE: KO), the world's largest beverage company, is a reliable blue chip stock. Including reinvested dividends, it delivered a total return of 659% over the past 30 years. Let's see why it's still a great stock to buy today to generate passive income for life.
Why is Coca-Cola an evergreen investment?
Over the past few decades, Coca-Cola has expanded its beverage portfolio with more brands of bottled water, fruit juices, teas, sports drinks, energy drinks, dairy products, coffee, and even alcoholic beverages. It also refreshed its flagship sodas with smaller serving sizes, new flavors, and healthier versions. That ongoing expansion and evolution enabled the company to continue growing, even as soda consumption rates fell worldwide.
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Coca-Cola only produces the concentrates and syrups for those beverages, then sells them to independent bottlers, restaurants, and other businesses that produce the finished drinks. That asset-light business model enables it to maintain high operating margins while generating stable cash flow and earnings, even amid economic downturns or choppy macro headwinds. It also doesn't own a struggling packaged foods segment like PepsiCo (NASDAQ: PEP).
That's also why Coca-Cola raised its dividend annually for 64 consecutive years. That makes it an elite Dividend King, having hiked its payout for at least 50 consecutive years. It currently pays a forward dividend yield of 2.6%. That yield might not seem impressive when the 10-Year Treasury still pays 4.5%, but it will attract more attention as interest rates decline.
From 2025 to 2028, analysts expect Coca-Cola's EPS to grow at 6.5% CAGR. That growth will be driven by its AI-powered inventory optimization strategies, the ongoing consolidation of its bottling network, as well as its stronger sales of dairy, energy, and sugar-free drinks. Its bottling partners will also continue to sell a higher mix of smaller, higher-margin cans.
Why is Coca-Cola a good stock to buy in June?
At $83, Coca-Cola's stock still looks reasonably valued at 25 times its trailing earnings. By comparison, the S&P 500 looks historically expensive at 32 times earnings. Rising inflation, the Middle East conflict, and other macro headwinds could deflate those valuations in the second half of 2026.
If that market pullback happens, more investors will rotate toward safe-haven stocks like Coca-Cola. Therefore, it seems to be a great time to buy more shares of Coca-Cola -- and commit to holding them for decades -- to earn a lifetime of reliable dividends.
Should you buy stock in Coca-Cola right now?
Before you buy stock in Coca-Cola, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Coca-Cola wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $433,268!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,259,391!*
Now, it’s worth noting Stock Advisor’s total average return is 935% — a market-crushing outperformance compared to 206% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
Leo Sun has positions in Coca-Cola. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Want a Lifetime of Passive Income? Buy Coca-Cola in June and Never Sell.

Key Points
Coca-Cola stock is a bulwark against rising producer prices.
The shares are rising alongside the Producer Price Index (PPI).
That's confirmation of the company’s ability to manage a challenging environment.
Perhaps lost in the shuffle of the June 11 risk-on equity market rally -- one fueled in part by the White House saying it nixed military strikes against Iran -- was the May reading of the Producer Price Index (PPI) released early in the day.
The report wasn't pretty. It showed a 1.1% increase, meaning the wholesale inflation rate over the prior 12 months was 6.5%, the highest level since November 2022. Typically, companies' higher input costs are passed on to shoppers, suggesting some vulnerability for consumer staples stocks. That's not the case across the board. Just look at Coca-Cola (NYSE: KO).
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
Outpacing the S&P 500 by a margin of more than 2-to-1 this year, the beverage stock hit a 52-week high the day before the PPI report. That's not a coincidence. Rather, it's a testament to Coca-Cola's execution prowess amid a tough operating climate.
Not just a pricing power story
As noted above, companies across a variety of industries often raise prices on customers to offset higher producer costs. Due to its enviable brand recognition and status as the purveyor of multiple premium soft drink brands, Coca-Cola could probably get away with some price hikes to soften the blow of elevated input costs. Still, the company isn't leaning on that option.
That's to the benefit of both investors and shoppers, because rival PepsiCo went down that road and lost billions of dollars in sales as cost-sensitive consumers said, "Enough is enough." Well-run companies learn from rivals' missteps, and Coca-Cola appears to have learned valuable lessons from Pepsi's pricing gaffes. Indeed, Coca-Cola is facing some inflationary headwinds, including constrained aluminum and plastic supplies due to the war in Iran.
For investors, the good news is that the company has levers it can pull to juice sales without pinching consumers. Those include pushing drinks that are less commodities-intensive (less sugar). Those moves are working because some on Wall Street say Coca-Cola is somewhat "insulate" from inflation-induced cost pressures and can maintain its appeal to both high-end and cost-conscious consumers.
Consider this. On June 10, Morgan Stanley named Coca-Cola its top pick in the beverage space, with one of the reasons for that bull call being the company's ability to hold prices in the face of inflation in superior fashion relative to some rivals.
Don't forget the dividend
Another point of allure with Coca-Cola is its status as a blue chip dividend stock. The shares yield 2.6%, and the payout has grown for 64 consecutive years. Obviously, a six-decade-plus run of steadily rising dividends is impressive in its own right, but it pays to dig deeper.
Typically, consistent dividend raisers are high-quality companies that can offer investors some protection when markets turn sour.
Coca-Cola's dividend growth is also relevant in the inflation protection conversation. The stock's 2.6% yield matches the average rate of inflation over the past two decades, and it's well above the five-year forward breakeven level of 2.2%. At the end of the day, no stock is the "perfect" inflation fighter, but long-term investors looking for a friend in the face of rising prices may want to give Coca-Cola a look.
Should you buy stock in Coca-Cola right now?
Before you buy stock in Coca-Cola, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Coca-Cola wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $438,283!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,257,427!*
Now, it’s worth noting Stock Advisor’s total average return is 938% — a market-crushing outperformance compared to 206% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
Todd Shriber has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

A 6.5% Increase in the Producer Price Index Is No Match for Coca-Cola Stock

Key Points
Celsius stock trades at just 14 times forward earnings, a fraction of its historical valuation and cheaper than rival Monster Beverage.
The recently acquired Alani Nu brand is already the company's largest moneymaker, posting 60% year-over-year revenue growth in Q1 2026.
The company is expanding internationally, with market share in Paris more than doubling under Suntory's distribution network.
I wasn't exactly named after 18th century astronomer Anders Celsius, but I still can't help feeling connected to the temperature scale inventor. So maybe I'm a little biased in favor of Celsius Holdings (NASDAQ: CELH), though the other Anders never invented an energy drink, and the beverage company's roots are closer to my Florida home than my Swedish origin.
With or without the namesake connection, Celsius' stock looks like a fantastic buy right now. Let me show you 5 reasons why.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
Reason 1: Celsius' valuation has reset to bargain levels
Celsius used to trade at nosebleed-inducing valuation multiples. In 2023, shortly after signing a long-term distribution deal with PepsiCo (NASDAQ: PEP), the stock traded for more than 100x earnings and 15x sales. That premium has evaporated.
Nowadays, Celsius shares are changing hands at 14 times forward earnings estimates with a price/earnings-to-growth (PEG) ratio below 1.0. As for the trailing figures, the stock has cooled down to 2.5 times sales. Sure, the trailing price-to-earnings (P/E) ratio remains lofty at 68x, but that's still a big step down and doesn't account for the company's rapidly growing profits.
Celsius is not only far cheaper than arch rival Monster Beverage (NASDAQ: MNST) but also trading below Pepsi on most metrics. That's not "growth at a reasonable price" but a bargain bin discount. The market seems to expect something to go terribly wrong.
Reason 2: Alani Nu is a rocket ship
When Celsius bought Alani Nu in April 2025, skeptics wondered if the company was paying top dollar for a fad. One year later, Alani Nu looks less like a short-lived vogue and more like a durable cheat code.
The brand posted $368 million in first-quarter revenue, up roughly 60% year over year. It's already the largest contributor to Celsius' total quarterly sales, ahead of the core Celsius brand and the classic Rockstar name. Alani Nu's shelf space more than doubled, and its growth tends to accelerate when Celsius introduces it in new distribution channels.
That's not supposed to happen. Fast-growing companies in the consumer goods space usually go after the low-hanging fruit first, allocating their early budgets and efforts to where they expect the best results. Every new distribution channel thereafter should bring slower growth and/or narrower profit margins. Alani Nu is breaking these classic rules.
Limited-time flavors like Cherry Bomb and Lime Slush have become cultural moments for the brand's loyal following, driving trial buys and repeat purchases. The acquisition that looked like an expensive gamble last year is starting to look like a steal.
Reason 3: Celsius sells 21% of U.S. energy drinks
Three years ago, Celsius was the scrappy underdog trying to steal a few points of market share from Monster and Red Bull. Today, the company owns three brands and controls over 20% of the U.S. energy drink market.
That's right. One in five energy drinks sold in America now comes from a Celsius Holdings brand.
Celsius itself covers the gym crowd. The brand stands out among energy brands via its focus on wellness and nutrition.
Alani Nu appeals to the underserved categories of younger, female, or flavor-obsessed consumers. Social media marketing plays a big role here.
The decades-old Rockstar brand, acquired from Pepsi last summer, lets Celsius lean into edgier branding and motor sports sponsorships.
A diversified brand portfolio should be more stable than a laser-focused single name. As CEO John Fieldly said at a recent conference, "these brands are more than the liquid in the can. It's like the threads on your shirt. It's the sneakers you wear. It's the authenticity of that brand."
In other words, brand identity matters, and Celsius is casting a wide net with three distinct brands.
Reason 4: Margins are expanding with more room to run
Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) margin hit 24.9% in Q1, up 370 basis points from a year ago. The company banked $50 million in synergies from the Alani Nu deal. A new manufacturing line opens later this year. And the company is widening its profit margins despite rising aluminum can and freight costs. Management is targeting gross margins in the low 50s, up from 48.3% today.
The margin playbook has three pillars:
Celsius is integrating its three brands into a unified structure of shipping, raw material sourcing, and production processes. Both Alani and Rockstar were less profitable than the Celsius brand before their respective buyouts.
The company is scaling up its production and marketing to unlock economies of scale. There is currently a single plant in North Carolina, soon to add a second production line. Over time, Celsius plans to build a nationwide supply chain with a West Coast facility and a "center of excellence" in Dublin, Ireland managing the entire system.
The booming Alani Nu brand and evolving production setup will help Celsius build more effective marketing packages. The three brands may not overlap each other's target demographics much, but you can cross-sell Rockstar, Alani Nu, and Celsius packages to thirsty families, for example.
Reason 5: World-class distribution partners give Celsius a structural advantage
Building a national beverage distribution network from scratch is a bit like building your own railroad. It takes decades, costs billions, and someone else probably already did it better. Celsius solved this problem by partnering with companies that laid the tracks years ago.
In the U.S., PepsiCo's direct-store-delivery network gives Celsius access to trucks, warehouses, and retail relationships that touch virtually every corner of American commerce. Internationally, Japanese food giant Suntory Beverage & Food (OTC: STBFY) handles distribution in key European markets, Australia, and New Zealand. For relaxing times, make it Suntory time; for energizing times, you can still make it Suntory time.
The domestic PepsiCo partnership is still evolving. Meanwhile, Suntory's European network is helping Celsius build meaningful share abroad; in Paris, the brand has grown from 2% to over 5% market share.
Anders Celsius traveled widely but always returned to Sweden. His namesake energy drink has bigger ambitions.
Should you buy stock in Celsius Holdings right now?
Before you buy stock in Celsius Holdings, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Celsius Holdings wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $438,283!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,257,427!*
Now, it’s worth noting Stock Advisor’s total average return is 938% — a market-crushing outperformance compared to 206% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of June 12, 2026.
Anders Bylund has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Celsius Holdings and Monster Beverage. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

5 Reasons to Buy Celsius Stock Right Now

Dividend stocks can be a great source of income for investors, especially retirees. That's because dividend stocks pay out cash distributions regularly, usually once per quarter.
While dividend stocks can be a great source of income, they can also be an excellent way to grow your wealth over time. That's because those companies that consistently pay out dividends must show strong discipline in managing their cash to ensure they can make regular dividend payments to investors. Not only that, but dividend-paying companies tend to outperform the broader market. According to Royal Bank of Canada's Global Asset Management division, from 1986 through 2016, dividend-paying companies returned investors an average of 9.9%, outperforming the 6.6% return in the broader market.
Three companies with solid dividend yields that you can invest in forever include Morgan Stanley (NYSE: MS), U.S. Bancorp (NYSE: USB), and Cincinnati Financial (NASDAQ: CINF).
1. Morgan Stanley
Morgan Stanley is a financial services firm with businesses across investment banking, wealth management, and securities trading. The company is a good dividend stock because it has diversified its revenue streams. Before 2020, the company relied primarily on investment banking and trading to generate revenue.
Seeing how volatile the business's earnings were, CEO James Gorman looked to diversify the company's revenue so it could perform well in all kinds of markets. The bank made a splash last year, making not one but two major acquisitions. The bank acquired E*TRADE and Eaton Vance, spending roughly $20 billion to improve its profitability in all kinds of market conditions.
E*TRADE gives the firm a consistent revenue stream from trading commissions and fees. This revenue stream can perform quite well when market volatility is high and investors engage in a lot of trading activity. Eaton Vance gives it a revenue stream that can do well in all market conditions. Wealth management will collect fees on total assets under management (AUM) and can provide it with revenue.
This consistent revenue stream should help the company maintain and even grow its dividend for the years to come. The bank doubled its dividend payout after the Federal Reserve lifted dividend restrictions on banking sector stocks earlier this year, and the stock currently yields investors a healthy dividend of 2.1% annually.
2. U.S. Bancorp
U.S. Bancorp is a well-run bank that focuses on risk management and strong credit quality. Its focus on high-quality loans and conservative loss provisions are one reason why it is known as one of the best-run super-regional banks in the U.S. U.S. Bancorp is also one of Berkshire Hathaway's top 10 largest holdings.
What makes U.S. Bancorp a solid dividend stock is its consistent earnings over the past decade. The stock currently trades at a price to tangible book value (equity minus intangible assets and goodwill) of 2.4, putting it at a more expensive valuation than other banking competitors.
However, it trades at a premium for a good reason. The bank has maintained stellar profitability ratios compared to its peers. Over the past 10 years, U.S. Bancorp has maintained an average return on equity (ROE) of 15.2% and an average return on assets (ROA) of 1.4% -- beating out other major banking competitors, including JPMorgan Chase, Bank of America, and Wells Fargo.
U.S. Bancorp has displayed excellent risk management and credit quality. Additionally, it has also built up a strong payments business, which should drive strong future growth for the bank. The bank currently gives investors an attractive yield of 3.1%.
3. Cincinnati Financial
Insurance companies can be a great source of income because of their consistent cash flow generation. That's a big reason why Warren Buffett has described insurance as one of his favorite industries to invest in.
Cincinnati Financial is an insurer focused on writing property and casualty insurance policies. The company mainly makes money from commercial insurance policies or those policies for businesses. It also underwrites personal lines of policies like auto insurance and homeowners insurance.
It has done a great job of writing profitable policies for decades now, and that is why it has been able to increase its dividend payout so consistently. From 2012 through 2020, the company has grown cash flow from its property-casualty policies at an 11.5% compound annual growth rate.
The company has invested heavily in its technology and AI to underwrite better policies and handle claims quickly and efficiently. These investments help it stay ahead of its competition, which has seen younger insurance companies looking to leverage AI and big data to disrupt the entire industry.
Cincinnati Financial has shown an impressive history of consistently increasing its dividends. The company is a part of the exclusive Dividend Kings club -- stocks that have increased dividend payouts for at least 50 years straight. The company has increased its dividend 61 years consecutively, a feat that only eight other companies have achieved. It also sports a solid dividend yield of 2.1%.
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Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in Vistra Corp (Symbol: VST), where a total volume of 26,458 contracts has been traded thus far today, a contract volume which is representative of approximately 2.6 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 50.3% of VST's average daily trading volume over the past month, of 5.3 million shares. Especially high volume was seen for the $175 strike call option expiring September 18, 2026, with 5,013 contracts trading so far today, representing approximately 501,300 underlying shares of VST. Below is a chart showing VST's trailing twelve month trading history, with the $175 strike highlighted in orange:
PepsiCo Inc (Symbol: PEP) options are showing a volume of 40,390 contracts thus far today. That number of contracts represents approximately 4.0 million underlying shares, working out to a sizeable 50.3% of PEP's average daily trading volume over the past month, of 8.0 million shares. Particularly high volume was seen for the $150 strike call option expiring June 12, 2026, with 26,190 contracts trading so far today, representing approximately 2.6 million underlying shares of PEP. Below is a chart showing PEP's trailing twelve month trading history, with the $150 strike highlighted in orange:
And Applied Digital Corporation (Symbol: APLD) saw options trading volume of 103,704 contracts, representing approximately 10.4 million underlying shares or approximately 49.6% of APLD's average daily trading volume over the past month, of 20.9 million shares. Particularly high volume was seen for the $45 strike call option expiring June 12, 2026, with 6,765 contracts trading so far today, representing approximately 676,500 underlying shares of APLD. Below is a chart showing APLD's trailing twelve month trading history, with the $45 strike highlighted in orange:
For the various different available expirations for VST options, PEP options, or APLD options, visit StockOptionsChannel.com.
Further VST Research:
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Noteworthy Tuesday Option Activity: VST, PEP, APLD

Key Points
The protein drink industry is growing at high single-digit levels, according to one research company.
The company introduced the Beyond Immerse line of protein drinks as a "limited-time" offer.
Beyond Meat has to compete with beverage and health industry giants to succeed.
Beyond Meat (NASDAQ: BYND) has faced an uncertain future for some time. As sales of its plant-based meat products have plummeted, the stock has lost more than 99% of its value as consumers and investors alike lost confidence in the company.
Now, Beyond Meat has attempted to pivot into the protein drink market. Amid that move, the question for investors is whether that strategic pivot changes the investment thesis for Beyond Meat or merely delays an inevitable decline.
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Beyond Meat and protein drinks
Beyond Meat began 2026 facing serious financial and business challenges. In 2025, its net revenue of $275 million had fallen 16% from year-ago levels as both domestic and international customers showed less interest in its plant-based meat products.
Additionally, the 2025 operating losses of $333 million more than doubled from 2024 levels as the cost of goods sold alone nearly matched revenue levels. The only reason it turned a $178 million profit for the year is that it received a $549 million benefit from its debt restructuring.
It was under these challenging conditions that the company launched its Beyond Immerse line of protein drinks in January. According to Maximize Market Research, the $35 billion protein drink market should grow at a 9.4% compound annual growth rate (CAGR) through 2032, presumably signaling an opportunity in this area.
Unfortunately for Beyond Meat, it has not proven that protein drinks are the turnaround catalyst the stock needs. That will be difficult, as it has to compete with corporate titans in the beverage and health industries. This includes PepsiCo's Muscle Milk, Coca-Cola's Fairlife, and drinks like Ensure and Glucerna, both developed by Abbott Laboratories.
Moreover, Beyond Meat does not seem clearly committed to this product line. It rolled out this product for a "limited time" from its Beyond Test Kitchen, which is unlikely to boost investor confidence in the stock.
Furthermore, although it may be premature to look for financial improvements, none have yet appeared in the company's financial results. In the first quarter of 2026, net revenue of $58 million fell 15% year over year. Also, its net losses have resumed, though the $28 million loss improved from the $61 million loss in the year-ago quarter amid aggressive cost-cutting.
Indeed, sales could improve in Q2 once investors can see a full quarter of sales results. Nonetheless, investors will have to see what, if anything, changes with the company's performance.
Stay on the sidelines with Beyond Meat stock
Beyond Meat began the year as a financially troubled company, and investors have no indications that its line of protein drinks has changed the company's investment thesis.
Admittedly, protein drinks have become increasingly popular, and the company probably needs more time to show whether the Beyond Immerse product line can turn the company around.
Unfortunately, Beyond Meat remains financially troubled, and it is too early to tell whether a move into protein drinks can succeed, or even whether the beverages will be more than a "limited-time" offering. Additionally, since it has to compete with numerous industry heavyweights, the prospects for success appear grim.
Amid its challenges and revenue declines, investors should probably avoid this consumer staples stock unless its protein drinks start gaining traction with consumers.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Can Beyond Meat's Pivot to Protein Drinks Change the Investment Thesis?

Celsius Holdings, Inc. CELH is leaning into the part of the energy drink category that is expanding fastest: low- and zero-sugar offerings. That positioning matters because it ties the company’s next leg of growth to a clear consumer preference shift, not just to deal-driven scale.
In the first quarter of 2026, the company’s portfolio accounted for 45% of the U.S. zero-sugar energy category’s $800 million growth. That kind of contribution suggests CELH is winning where incremental category dollars are showing up.
CELH Is Positioned Where the Category Is Growing Fastest
The portfolio’s emphasis on low- and zero-sugar formulations is central to its growth setup. Across CELSIUS, Alani Nu and Rockstar, the company is aligning with consumer demand for energy products that deliver function without sugar.
The first-quarter 2026 data point is the headline trend signal. Contributing 45% of zero-sugar category growth gives CELH a strong argument with retailers as they decide where to allocate space, promotions and innovation focus through 2026.
Image Source: Zacks Investment Research
Celsius Brands Target Different Consumers and Occasions
A key trend in energy is platform building, not single-brand dependence. CELH’s strategy fits that shift, with three brands that management framed as targeting different consumers, occasions and price points.
Portfolio breadth can raise retailer relevance because it allows one supplier to cover more usage moments. It can also improve shelf access and execution when the distributor can coordinate placement and promotional priorities across brands. In the United States and Canada, that coordination runs through PepsiCo, Inc. PEP under amended distribution agreements and a “captaincy” arrangement.
This structure can be a competitive differentiator against more concentrated brand portfolios. Monster Beverage Corporation MNST, for example, remains a key public competitor in energy, and retailers will continue to reward suppliers that can deliver both velocity and assortment coverage across segments.
CELH Shelf Resets Are Becoming a Major Growth Lever
Shelf resets are increasingly becoming a primary growth lever in energy, especially in channels where space is scarce and competition is intense. Management expects 2026 resets to support about 17% additional space for CELSIUS and more than 100% space gains for Alani Nu, with maintained net space for Rockstar during assortment reconfiguration.
That outlook matters because shelf allocation is a battleground. More facings can lift visibility and trial, while better placement can improve repeat purchase by making the product easier to find in high-traffic sets.
Resets also serve as a forcing function for portfolio discipline. As the company optimizes assortments and rationalizes underperforming stock keeping units, it is effectively trading breadth for productivity, aiming to improve velocities across fewer, stronger items.
Celsius Innovation Cycles Shift From Quiet to Active
Innovation timing is another demand-shaping lever in energy. Management indicated that first-quarter results reflected a lighter innovation schedule, but the company is moving into a more active period.
Planned initiatives include the launch of CELSIUS Electric Vibe ahead of a global soccer tournament in North America, additional summer limited-time offerings, and continued momentum in fizz-free products. The theme is clear: innovation becomes more deliberate and event-timed, rather than evenly distributed.
For investors, the trend to watch is whether this shift supports better shelf productivity. A more active pipeline can help defend share in a crowded set, but it also raises execution requirements across supply chain, marketing, and in-store activation.
CELH’s Alani Nu Momentum Highlights New Demand Pockets
Alani Nu is the clearest example of how energy demand is expanding into new consumer pockets. The brand delivered record first-quarter 2026 revenue of about $368.1 million and posted roughly 60% pro forma growth year over year.
Retail sales increased 100% year over year for the 13 weeks ended March 29, 2026, and the brand reached about 9% dollar share of the U.S. ready-to-drink energy category. Management also highlighted flavor-led innovation, noting that Lime Slush became Alani Nu’s top-selling flavor in tracked channels.
This matters as a broader trend signal because it shows how brand positioning and innovation can broaden the addressable audience. It also reinforces why the portfolio approach can work: one platform can serve multiple consumer segments without forcing a single brand to do all the heavy lifting.
Celsius International Expansion Adds a Second Growth Engine
Exporting U.S. energy winners is another trend that should remain in focus through 2026. International revenue rose 55% year over year to $35.3 million in the first quarter of 2026, driven by strength in the Nordics and growth in expansion markets including the United Kingdom, Ireland, France, Australia, New Zealand and Benelux.
The company also launched in Spain through Suntory, with Portugal expected next. That builds optionality, giving CELH another path to growth beyond North American reset cycles.
International expansion can also diversify the growth profile over time. As distribution builds in new markets, the Zacks Rank #3 (Hold) company can layer in innovation and channel expansion, potentially creating a second engine that is less tied to U.S. promotional cadence. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Celsius Holdings Inc. Price, Consensus and EPS Surprise
CELH Trend Risks: Costs and Brand Turnarounds Still Matter
Trend alignment does not eliminate operational risk. Management flagged that margin recovery remains exposed to commodity and freight swings, as well as promotional intensity in the category.
Distributor concentration is also a key watch item. PepsiCo represented 59% of revenue in the first quarter of 2026, which raises dependence on one partner for a large share of the company’s top line.
Finally, Rockstar remains a stabilization story. In the quarter, Rockstar retail sales declined 13% year over year and the brand held about 2% share of the U.S. ready-to-drink energy category. Management described 2026 as a stabilization year, with integration expected to be completed in the first half. If that turnaround takes longer than expected, it can dilute the benefits of broader category tailwinds.
Through 2026, the core trend question is straightforward: can CELH convert zero-sugar momentum, shelf resets and a more active innovation cycle into sustained velocity gains, while managing costs and executing across three brands at once?
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CELH and Zero-Sugar Energy Trends to Watch Through 2026

Celsius Holdings, Inc. CELH posted headline growth in the first quarter of 2026, but the story is no longer just about one brand. The company is now operating a broader U.S. ready-to-drink energy platform with CELSIUS, Alani Nu and Rockstar.
That shift changes how investors should read both growth and profitability. It also puts more weight on execution across a multi-brand portfolio.
CELH Q1 2026 Results Put Scale Front and Center
Celsius reported first-quarter 2026 revenue of $782.6 million, up 138% year over year. The scale jump reflects a much larger portfolio after the 2025 additions of Alani Nu and Rockstar in the United States and Canada.
For investors, that matters because the growth rate is now heavily influenced by mix. Consolidated results capture a combination of acquired revenue, integration progress, and the trajectory of the legacy CELSIUS brand. Reading the quarter requires separating “bigger” from “better,” especially as the company works through resets and post-deal execution.
Celsius Portfolio Mix Explains the Quality of Growth
Celsius now operates three distinct U.S. energy brands with different consumer targets, price points and occasions. That breadth can diversify demand and increase relevance with retailers that want coverage across multiple segments.
The expanded platform also runs through PepsiCo, Inc. PEP in the United States and Canada. Under amended distribution agreements and a “captaincy” arrangement, PepsiCo coordinates sales, placement and promotional priorities across the portfolio. The coordination can improve shelf access and in-store execution, but it also raises the standard for operational discipline because three brands need to win simultaneously.
Mix cuts both ways. Alani Nu and Rockstar broaden reach, yet they also bring different margin profiles and cost structures that can muddy near-term comparisons versus the legacy CELSIUS business.
CELH’s Buyback Program Signals Capital-Return Intent
Celsius exited the quarter with cash and cash equivalents of $549.2 million as of March 31, 2026, up from $398.9 million at year-end 2025. That liquidity gives management room to invest behind distribution gains, innovation, and integration, while still returning capital.
During the quarter, Celsius repurchased about 700,000 shares for $24.1 million at a weighted average price of $35.39 per share. The company had $236.1 million remaining under its $300 million repurchase authorization at quarter-end, and buybacks continued into the second quarter.
In practical terms, the program signals a willingness to balance brand investment with shareholder returns. The remaining authorization also provides flexibility if the Zacks Rank #3 (Hold) company wants to lean into repurchases opportunistically while it funds retail resets and marketing initiatives across multiple brands. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Celsius Margin Pressure Is the Near-Term Trade-Off
Profitability is the clearest trade-off in the new portfolio phase. Gross margin declined to 48.3% in the first quarter of 2026 from 52.3% in the prior-year period.
Management attributed the decline primarily to mix dilution from Alani Nu and Rockstar, which carry lower margin profiles than the legacy CELSIUS business. External costs also weighed on results, including higher Midwest aluminum premiums, elevated aluminum costs, rising freight expenses, fuel inflation, resin pricing pressure, and added logistics costs tied to Rockstar inventory rebalancing.
This is the cost of building scale quickly. The key is whether the pressure proves temporary as integration stabilizes and cost actions take hold.
Image Source: Zacks Investment Research
CELH’s Path Back to Low-50% Gross Margins
Management outlined several levers aimed at improving profitability. These include procurement savings, freight optimization and manufacturing efficiencies.
At the same time, management acknowledged that elevated input costs could delay the timing of a return to low-50% gross margins. That framing is important because it sets expectations that margin recovery may not be linear, even as revenue scales.
Investors should watch for evidence that the cost actions are flowing through results, particularly as Rockstar logistics normalize and the portfolio settles into a steadier operating rhythm.
Celsius SG&A Growth Raises the Leverage Question
Operating expenses expanded sharply as Celsius absorbed a bigger platform. Selling, general and administrative expenses rose 95% year over year to $234.6 million.
Sales and marketing increased to $150.6 million from $80.9 million, while general and administrative expenses climbed to $84.1 million from $39.4 million. Although SG&A improved as a percentage of revenue, the absolute spending increase highlights the cost of running a broader portfolio.
The investment case tension is straightforward. Integration work, retail resets, innovation programs, international expansion and large marketing partnerships can support long-term brand health. But if growth moderates, the heavier cost base can limit operating leverage. That makes execution and pacing critical.
Image Source: Zacks Investment Research
CELH Decision Framework: What Must Go Right From Here
Celsius’ checklist starts with the core brand. In the quarter, CELSIUS generated about $348 million of revenue and grew about 6% year over year, with headwinds tied to SKU optimization, assortment rationalization and a lighter innovation schedule. Investors should look for signs that resets and launches lift velocities and re-accelerate the base business.
Second is portfolio execution. Alani Nu delivered record quarterly revenue of about $368.1 million and roughly 60% pro forma growth, while Rockstar remained the challenged asset with retail sales down 13% and about 2% U.S. category share. Progress means sustaining Alani Nu momentum while stabilizing Rockstar without distracting from CELSIUS.
Third is margin direction. The path back toward low-50% gross margins depends on cost initiatives and easing input pressure. Finally, disciplined spending matters. The platform can support long-term leverage, but only if SG&A growth does not outpace the underlying demand trajectory.
Competitively, retailers will continue to compare Celsius’ execution against category leaders such as Monster Beverage Corporation MNST. The company’s advantage is scale and breadth. The next step is proving that scale can translate into durable, profitable growth.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Is CELH a Buy After Q1 2026 Results and Share Buybacks?

The Coca-Cola Company KO is pursuing a balanced inflation strategy that combines selective price increases with affordability initiatives to protect demand. Rather than relying solely on passing higher costs to consumers, Coca-Cola is using its Revenue Growth Management capabilities to tailor pricing, packaging and promotional strategies across markets. Management emphasized that while inflation continues to pressure certain consumer segments, especially lower-income households, the company is expanding affordable options through smaller pack sizes and entry-level offerings to maintain consumer engagement and brand loyalty.
The first-quarter 2026 results highlight this balanced approach. Organic revenues grew 10%, supported by 4% of pricing actions, while global volume increased 3%, indicating that consumers largely absorbed price increases without significantly reducing purchases. Coca-Cola’s executives noted that affordability remains a key component of their strategy, particularly in markets facing economic pressure. In North America, for example, the company introduced affordable single-serve and multi-serve packages to retain value-conscious consumers within the franchise.
At the same time, Coca-Cola faces rising input costs, particularly in commodities such as tea and coffee, while its bottling partners are exposed to inflation in aluminum and PET packaging. Management described these pressures as manageable due to established cost-control playbooks, procurement efficiencies and pricing capabilities developed over recent years. Rather than implementing aggressive price hikes that could harm demand, Coca-Cola is leveraging local market flexibility and consumer insights to determine the appropriate balance between pricing and volume growth.
Overall, Coca-Cola’s strategy suggests it is neither fully passing costs to consumers nor sacrificing demand. Instead, the company is using a combination of pricing power, affordability measures and operational efficiencies to navigate inflation while sustaining revenue growth and market share gains.
KO’s Peers: PEP & MNST’s Inflation Strategy
PepsiCo Inc. PEP and Monster Beverage Corporation MNST have adopted similar but distinct approaches to inflation, balancing strategic pricing actions with efforts to protect consumer demand as rising input and packaging costs continue to pressure margins.
PepsiCo’s inflation strategy in first-quarter 2026 focused on balancing pricing actions with affordability measures rather than relying solely on higher prices. The company credited effective net pricing for supporting 2.6% organic revenue growth, while also investing in affordability initiatives, particularly within its North American food business, to stimulate volume growth.
PEP’s management highlighted the use of sharpened price-pack architecture, productivity savings and commodity hedging programs to mitigate cost pressures. By combining selective price increases with value-oriented offerings and operational efficiencies, PepsiCo aimed to protect consumer demand while preserving profitability in an increasingly volatile inflationary environment.
Monster Beverage’s inflation strategy centers on selective pricing, cost management and product mix optimization rather than sacrificing demand. Management noted that higher aluminum costs and tariffs modestly pressured margins in first-quarter 2026, but these impacts were partially offset by pricing actions and hedging strategies.
MNST emphasized that prior pricing increases continue to perform as expected, with consumers showing resilience and category demand remaining strong. Monster Beverage also leverages a broad portfolio of premium and affordable brands, allowing it to address different consumer budgets while maintaining volume growth, market share gains and profitability despite inflationary pressures.
KO’s Price Performance, Valuation & Estimates
Shares of Coca-Cola have risen 2.2% in the past three months compared with the industry’s return of 0.5%.
Image Source: Zacks Investment Research
From a valuation standpoint, KO trades at a forward price-to-earnings ratio of 23.67X compared with the industry’s average of 18.92X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for KO’s 2026 and 2027 earnings per share implies year-over-year growth of 8.7% and 7%, respectively. The estimates for the aforesaid years have been unchanged in the past 30 days.
Image Source: Zacks Investment Research
Coca-Cola currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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CocaCola Company (The) (KO) : Free Stock Analysis Report
PepsiCo, Inc. (PEP) : Free Stock Analysis Report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.