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 looks like a high-quality defensive asset, but no longer a cheap one: the business consistently generates profits, while margins and profitability are noticeably above industry averages. A P/E ratio around the industry median does not look overheated; however, P/S, P/B, and P/FCF are significantly above the market, which limits re-rating potential and calls for caution. At the same time, the trend in operating metrics is generally positive: revenue, gross profit, EBITDA, operating profit, and net profit have increased compared with earlier periods, while operating and net margins have improved. ROE, ROA, and ROI are also at strong levels and continue to rise, confirming high capital efficiency. On the other hand, the balance sheet remains strained: the current ratio and quick ratio are below comfortable levels, while debt/equity and long-term debt are high, which is a negative from a conservative valuation perspective. This means the company is doing a good job of running the business and generating cash flow, but financial flexibility is limited by its debt burden. The dividend yield of around 1% looks rather moderate, so the dividend factor supports the valuation but is not a strong driver. Growth in equity and assets shows that the business is expanding in scale, but this does not fully offset the high valuation multiples relative to book value and revenue. It is also worth noting that return on tangible equity is zero in the provided data, which makes this metric neutral and does not add confidence to the valuation. Overall, the fundamentals support the current valuation more than they justify a meaningful increase in the target price. For an investor, this is a story of resilience, quality, and predictability, but without a clearly pronounced discount to intrinsic value. Therefore, the adjustment should be moderately positive, reflecting strong operating performance with the restraining effect of expensive multiples and debt load.

PepsiCo, Inc.

Сильный индекс, значительно упал. Оптимистичный взгляд на свои позиции резко сменился на неуверенность.

Strong index, significantly down. An optimistic view of his position suddenly changed to uncertainty.

Сильный индекс, без изменений. Рынок не поддерживает быков.

Strong index, flat. The market does not support the bulls.

Средний индекс, незначительно вырос. Отток средств из лонгов снизился, но остается значительным.

Medium index, slightly up. The outflow of funds from longs has decreased, but remains significant.

PepsiCo has strong margins and profitability, but high P/S, P/B, and debt limit upside; the fundamentals rather support a moderately elevated valuation.

Key Points
I eventually want to live off the income my portfolio generates, so I focus on dividend stocks.
Like Warren Buffett, I'm comfortable holding cash until an attractive investment arises.
My portfolio spans multiple sectors and includes a reasonable number of stocks, with pooled investment products further diversifying my holdings.
To summarize my investment approach, I prefer to buy companies with long histories of dividend increases and historically high yields. Those two traits don't come around all that often, and sometimes I find clusters of stocks in specific sectors. I need to think specifically about diversification, one of the simplest and most effective ways to reduce risk. Here's how I've done it as I've built my portfolio of around 34 investments.
How many stocks do you need to be diversified?
The Motley Fool recommends that investors own 50 stocks. That's a perfectly fine number, but also a lot of work. And just owning 50 stocks doesn't actually mean you are diversified. You could own 50 technology stocks, for example, which would leave you with exposure to just a single sector. That's not diversification. Diversification is really about owning a reasonable number of investments across a wide range of sectors and asset classes.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
My first step toward diversification was to take an honest look at what I want to achieve and what I'm capable of. My goal is a mixture of income and capital appreciation. I am fairly confident in my ability to select dividend stocks, though every investor makes mistakes from time to time, and I know I can only juggle so many stocks at once. In other words, 50 stocks are too many for me, so a core part of my diversification strategy is to outsource some of my work.
For example, I own two Baron mutual funds to gain exposure to growth stocks and smaller companies. I own several closed-end funds: one focused on healthcare stocks with an option income overlay, one investing in convertible securities, and one with a broadly diversified dividend portfolio. And I own three exchange-traded funds: one with an option income focus and two that use very different screening approaches to pick dividend stocks.
This collection of investments includes hundreds of stocks across a wide range of sectors (and convertible bonds), materially adding to my diversification. And many of these pooled investments do things I either don't want to do myself because they are time-consuming (such as an option income strategy) or don't think I can reasonably do myself (such as investing in healthcare and small growth stocks). With my foundation spread widely across sectors, investment approaches, and a large number of stocks and convertible bonds, I can comfortably invest in individual stocks knowing I have a diversified foundation to work from.
Step two is focusing on what I can do: Dividend stocks
My preference is to buy companies that have impressive histories of increasing their dividends and yields that are historically high. I dig deeply into the companies I am considering and only buy when I believe the business is worth owning. Some of the stocks that have made the cut include Realty Income (NYSE: O), PepsiCo (NASDAQ: PEP), Black Hills (NYSE: BKH), and Enbridge (NYSE: ENB).
Stepping back, that's a real estate investment trust, a consumer staples giant, a regulated utility, and a North American pipeline giant. Because of my pooled investments, I don't worry too much about overlaps, but I also make sure to buy stocks across various industries. For example, I own several REITs, several consumer staples companies, and a couple of energy stocks and utilities. These are areas where income opportunities often arise, so I have to go where the dividends are, while still working to keep the portfolio spread across various sectors.
Notably, when I buy a stock, I invest a specific dollar amount. Basically, I have a position size that I want to build. Once I build to a full position, I don't add to it. That may limit my upside, but it also means my downside risk is limited.
What's also notable here is that I try to buy when a stock has a historically high yield. For example, despite a long and successful history, PepsiCo isn't currently performing very well as a business. I believe the Dividend King, with over 50 annual dividend increases, will get back on track. But Wall Street is downbeat on the stock, pushing the yield above 4%. It was an opportunistic purchase I was prepared to jump on because if I can't find something I want to buy, I'm happy to hold cash. Warren Buffett uses a similar approach, so I'm not going out on a limb here. And cash is the ultimate "safe" investment, though inflation erodes its value over time. Still, I usually have cash on hand because I prefer to be highly selective about which companies receive my capital.
The big takeaway is to know your limitations
Diversification is important, and it is fairly easy to do if you take the time to consider how many baskets you are capable of dealing with at one time. I know I can't do everything all at once, so I've outsourced aspects of my portfolio while continuing to do the things that I enjoy and believe I'm good at. This allows me to focus my energy where it is likely to produce the best results. And if I can't "find" an investment, I don't force myself to find one just to say I'm doing something. I only make a move when I have a strong conviction, knowing that cash is a safe-haven investment that provides me with material flexibility in both good markets and bad ones.
Should you buy stock in PepsiCo right now?
Before you buy stock in PepsiCo, 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 PepsiCo 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 $417,413!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,341,294!*
Now, it’s worth noting Stock Advisor’s total average return is 950% — a market-crushing outperformance compared to 210% 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 September 12, 2026.
Reuben Gregg Brewer has positions in Black Hills, Enbridge, PepsiCo, and Realty Income. The Motley Fool has positions in and recommends Enbridge and Realty Income. The Motley Fool has a disclosure policy.

Portfolio Diversification Is the Simplest Way to Lower Risk. Here's How I Build Mine.

Key Points
Enterprise Products Partners has 28 annual distribution increases and a 5.6% yield.
Realty Income has 31 annual dividend increases and a 5.3% yield.
PepsiCo is a Dividend King and offers a 4.3% yield.
The stock market is trading near all-time highs. JPMorgan Chase (NYSE: JPM) CEO Jamie Dimon is warning Wall Street about tectonic plates beneath the financial surface that could "cause meaningful disruptions when they shift or collide." Some of the risks include geopolitical conflict, inflation, and elevated debt levels. If you are looking for high-yield dividend stocks in this environment, you need to focus on resilient businesses.
Here's why Enterprise Products Partners (NYSE: EPD), Realty Income (NYSE: O), and PepsiCo (NASDAQ: PEP) should be on your short list in September. And, the best part, is that the lowest yield on this list is roughly 4x higher than the miserly 1% yield on offer from the S&P 500 index (SNPINDEX: ^GSPC).
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
These dividends have lived through hard times
Of the high-yield investments on this list, Enterprise Products Partners has the shorted streak of annual distribution increases at 28 years. However, that's about as long as the midstream master limited partnership (MLP) has been publicly traded. Real estate investment trust (REIT) Realty Income's streak is 31 years. And PepsiCo, one of the world's largest consumer staples businesses, has an incredible 53-year track record, making it a Dividend King.
As of this writing, it is 2026, so each of those streaks started before the dot-com crash and survived it. They continued through the Great Recession, when there were legitimate concerns that the global financial system would collapse. And they got through the coronavirus pandemic, when governments around the world effectively shuttered their economies. If you need a dividend you can count on, these three high-yielders have proven they can keep paying through extreme adversity.
Enterprise lets you sidestep commodity risk in the energy sector
North American midstream giant Enterprise Products Partners has the highest yield at 5.6%. The MLP operates in the highly volatile energy sector, but it is a very boring business that throws off reliable cash flows. That's because its collection of energy infrastructure assets, such as pipelines, helps to move oil and natural gas around the world. It charges fees for the use of its assets, so the prices of oil and natural gas aren't the driving force of its business; demand for these vital fuels is.
Realty Income has a diversified global footprint and a net lease focus
Realty Income's 5.3% yield is backed by a massive portfolio of single-tenant net lease properties. A net lease requires the tenant to pay most property-level operating costs, thereby reducing Realty Income's expenses and risk. Meanwhile, the portfolio includes over 15,500 assets spread across North America and Europe. While roughly 80% of its properties are retail, that is the most liquid net lease asset class. Its industrial exposure and other properties, such as casinos and data centers, add meaningfully to diversification. And the REIT has been expanding its reach into debt financing and institutional asset management, complementary areas that add even more diversification.
PepsiCo sells low-cost products that people buy regularly
PepsiCo has the most impressive streak by far, as its 53 years of increases puts it on the Dividend King list. The current 4.3% yield is historically high, as the consumer staples giant faces headwinds. However, PepsiCo has successfully navigated headwinds many times over the past 53 years. It is highly likely to do so again. One key feature here is the company's diversified business, with industry-leading positions in beverages, snacks, and packaged food products.
Consider adding all three dividend stocks in September
Of the three high-yield dividend stocks here, PepsiCo is probably the riskiest choice. But that speaks more to the low-risk nature of Enterprise and Realty Income than to the risks posed by PepsiCo. With well-above market yields and incredible dividend histories, this trio could enhance your income stream while, at the same time, helping you sleep at night. Now, before the tectonic plates Jamie Dimon warned about crash together, is the time to add reliable dividend stocks like these to your portfolio.
Should you buy stock in Enterprise Products Partners right now?
Before you buy stock in Enterprise Products Partners, 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 Enterprise Products Partners 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 $417,413!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,341,294!*
Now, it’s worth noting Stock Advisor’s total average return is 950% — a market-crushing outperformance compared to 210% 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 September 12, 2026.
JPMorgan Chase is an advertising partner of Motley Fool Money. Reuben Gregg Brewer has positions in PepsiCo and Realty Income. The Motley Fool has positions in and recommends JPMorgan Chase and Realty Income. The Motley Fool recommends Enterprise Products Partners. The Motley Fool has a disclosure policy.
Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

3 High-Yield Dividend Stocks Worth Loading Up On This Month

Key Points
It’s been a rough go of things for PepsiCo shareholders of late, but the business is fine.
Tobacco giant Altria Group is likely to be around -- and dishing out dividends -- for far longer than many investors might expect.
Verizon Communications may not be a high-growth opportunity, but it’s a fantastic opportunity to plug into reliable dividend growth.
Do you need more investment income than your portfolio is currently giving you? The recent rise in interest rates certainly puts bonds on more investors' radars. If you're going to need this income to at least have a shot at keeping up with inflation, however, dividend stocks arguably remain the smarter bet.
With that as the backdrop, here's a closer look at three high-yielding dividend stocks that could generate over $1,600 worth of annual dividend income with just $10,000 stakes in each one.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
PepsiCo
It's been an unusually disappointing past three years for patient PepsiCo (NASDAQ: PEP) shareholders. The beverage company's stock is now down 30% from its mid-2023 peak and back within sight of the multiyear low made around the middle of last year.
Blame the economic backdrop, mostly. Inflation has not only worked against PepsiCo by raising its production costs but has forced shoppers into becoming more cost conscious as well. PepsiCo's product lineup has also lost some of its marketing mojo as consumers rekindle their interest in healthier snacking. It's all been taking a toll on the company's bottom line.
Or was, anyway. Last quarter's organic revenue growth of 2.4% doesn't seem like much, but it's quite a bit for a consumer staples name that had been struggling and is still in the midst of an overhaul that includes the recent debut of new products like a prebiotic cola and a protein-infused version of its popular Doritos brand of snack chips. The company expects comparable revenue growth for the remainder of the year to be outpaced by per-share earnings growth of between 4% and 6%. Again, for the industry, not bad.
The irony? Despite the stock's sizable pullback, neither the company nor the stock's dividend was ever -- and still isn't -- facing an existential crisis. The stock's 54-year streak of annual dividend increases isn't at any real risk of being broken anytime soon either. In fact, PepsiCo has earned the title of Dividend King thanks to this record of annual dividend increases for over 50 years. The 30% pullback from 2023's peak has merely pumped the ticker's forward-looking dividend yield up to a multidecade high of 4.3%, That spells opportunity for anyone who can see the bigger, longer-term picture.
Altria Group
There will come a time when the tobacco business finally collapses. That time is much further down the road than most smoking-cessation advocates might care to admit though. According to data from the U.S. Center for Disease Control and Prevention, about one out of every ten Americans still smokes, and that last 10% is proving to be a tough proverbial nut to crack. In the meantime (despite its own risks), vaping usage continues to rise, particularly among young adults.
The point is, there's still good money to be made within this sliver of the "vice" business, and there will be for a long while.
Enter Altria Group (NYSE: MO), although you may better know it by its brands like Philip Morris and Marlboro, or perhaps to a lesser extent, vaping brand NJOY or nicotine pouch maker Helix Innovations. While the company sold about 3% fewer cigarettes during the first half of 2026 than it did in the first half of 2025, net revenue continues to edge higher thanks to a combination of continued pricing power and sales of non-tobacco products. Arguably most important -- largely thanks to stock repurchases -- adjusted per-share profits improved by 2.8% in the second quarter of this year and are higher to the tune of 4.9% year to date. This of course supports continued payment of its dividends.
Again, there's no denying the end of Altria's business as we currently know it is coming. The company's "moving beyond smoking" slogan explicitly concedes as much.
Its underlying dividend behind the stock's forward-looking yield of 6.5% isn't in any immediate jeopardy, and the eventual wind-down of its current operation won't suddenly happen. Investors should be able to see well ahead of time when the business is reaching the tipping point of sustainability. Enjoy its sizable dividend payments until then.
Verizon Communications
Finally, add Verizon Communications (NYSE: VZ) to your list of dividend stocks to buy for good dividend income. At its forward-looking yield of 5.7%, a $10,000 position would produce $570 worth of annual dividend payments.
You know the company. Verizon is, of course, the country's biggest wireless telecom service provider. As of June, nearly 147 million mobile devices were connected to its network, plus a few hundred-thousand wireless broadband subscribers.
It's not a high-growth business by any stretch of the imagination. The U.S. mobile market is highly saturated and highly competitive. Any real revenue growth will come from population growth and price increases, neither of which is a major growth driver.
What Verizon lacks in raw growth firepower, however, it more than makes up for in reliable cash flow.
Think about it. Good or bad, most Americans have made their smartphones a centerpiece of their existence. A recent survey from Reviews.org reveals the average person living in the United States spends over four hours per day looking at their smartphone's screen, topping their total connected television view time of just under three hours. With the well-developed habit now firmly in place, it's not a question of whether consumers will continue paying to keep their mobile devices connected. It's just a question of which provider they'll choose. And Verizon is doing pretty well in that regard too, adding 184,00 (net) postpaid phone customers in Q2 of this year, accelerating Q1's count of 55,000 despite market saturation.
What this effectively means for Verizon shareholders is dependable, continued dividend growth, extending the company's current track record of 20 consecutive years of annual dividend increases.
Should you buy stock in PepsiCo right now?
Before you buy stock in PepsiCo, 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 PepsiCo 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 $409,917!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,341,724!*
Now, it’s worth noting Stock Advisor’s total average return is 942% — a market-crushing outperformance compared to 211% 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 September 11, 2026.
James Brumley has no position in any of the stocks mentioned. The Motley Fool recommends Verizon Communications. The Motley Fool has a disclosure policy.

All It Takes Is $10,000 Invested in Each of These 3 High-Yield Dividend Stocks to Generate Over $1,650 in Yearly Dividends

Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the Invesco Large Cap Value ETF (Symbol: PWV) where we have detected an approximate $451.7 million dollar outflow -- that's a 19.3% decrease week over week (from 28,720,000 to 23,190,000). Among the largest underlying components of PWV, in trading today AT&T Inc (Symbol: T) is up about 2.4%, PepsiCo Inc (Symbol: PEP) is trading flat, and Ford Motor Co. (Symbol: F) is higher by about 0.9%. For a complete list of holdings, visit the PWV Holdings page » The chart below shows the one year price performance of PWV, versus its 200 day moving average:
Looking at the chart above, PWV's low point in its 52 week range is $63.54 per share, with $83.41 as the 52 week high point — that compares with a last trade of $81.88. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Further PWV Research:

Notable ETF Outflow Detected - PWV, T, PEP, F

Key Points
PepsiCo raised its quarterly dividend 4% in May, extending a streak that started in 1972.
The stock yields 4.3% at recent prices, beating the best high-yield savings accounts.
Reinvested dividends turned a 29% stock gain into a 75% total return over 10 years.
Let me cut to the chase. PepsiCo (NASDAQ: PEP) is a fantastic dividend growth stock to buy right now and hold for a very long time.
The raise that keeps on giving
PepsiCo raised its dividend in May 2026. The quarterly payout was set to $1.48 per share, which is a 4% increase from the previous quarter and the year-ago period. The dividend policy works out to a generous 4.3% annual yield against recent prices, comparing favorably to even the best high-yield savings accounts nowadays.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
But that's not the whole story. You see, this wasn't PepsiCo's first dividend boost. The company is a Dividend King, which means it has raised its payouts for at least the last 50 years. The soda and snack giant's check-boosting streak started 54 years ago, in 1972.
Dividends did PepsiCo's heavy lifting
In other words, PepsiCo isn't just a consistent dividend payer, but a deeply committed dividend growth stock. The company's free cash flows rose 131% over the last two decades. Dividends paid quintupled over the same period.
And the rich payouts make a real difference to shareholder returns. PepsiCo's stock price rose 29% over the last decade. If you reinvested the dividends in more stock along the way, you'd have a total return of 75% instead.
The lag is the opportunity
The 10-year returns don't look great compared with the S&P 500 (SNPINDEX: ^GSPC), whose total return has surged 319% since September 2016. Then again, PepsiCo isn't a player in the AI boom, which drove most of the index's outperformance in recent years.
And that underperformance is part of my investment thesis here. As of Sept. 8, PepsiCo's stock is down 14.3% over the past six months. Coca-Cola (NYSE: KO), Keurig Dr Pepper (NASDAQ: KDP), and Monster Beverage (NASDAQ: MNST) all gained at least 13%. As a result, PepsiCo carries some of the lowest valuation ratios in the large-cap beverage sector.
That's the Dividend King I want in my portfolio: a boring snack-and-soda machine that keeps raising the check every year, currently marked down for a September sale.
Should you buy stock in PepsiCo right now?
Before you buy stock in PepsiCo, 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 PepsiCo 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 $414,015!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,385,459!*
Now, it’s worth noting Stock Advisor’s total average return is 960% — a market-crushing outperformance compared to 213% 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 September 9, 2026.
Anders Bylund has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Monster Beverage. The Motley Fool has a disclosure policy.

My Top Dividend Growth Stock to Buy in September and Hold Forever

Key Points
AMD's stock is valued at more than double Nvidia's.
Nvidia is more exposed to data center revenue.
When two companies competing in the same industry have similar operating profiles, they tend to be priced about the same in terms of valuation. The market is full of examples like this: PepsiCo and Coca-Cola, Home Depot and Lowe's, Nvidia (NASDAQ: NVDA) and AMD (NASDAQ: AMD). However, the latter has experienced an unprecedented valuation split, and investors need to be aware of it.
Typically, there's one company that's more dominant than the other, and that company usually has a premium valuation. This is true for the stocks mentioned above, except for AMD and Nvidia. Despite Nvidia having a larger market share and growing faster than its peer, AMD is the more expensive stock. This is not a normal situation, and investors should be aware of it, as it should shape which of the stocks investors have higher exposure to.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Why is AMD stock so expensive?
Both AMD and Nvidia are growing at an impressive rate; as a result, using a trailing earnings metric like the price-to-earnings (P/E) ratio doesn't paint the full picture of where these two stocks should actually be valued. However, there is a huge gap when trailing earnings are used.
From this perspective, AMD has always been more expensive throughout the past few years as the AI arms race accelerated. However, AMD's earnings were heavily affected by profit margins that weren't optimal, thus the high valuation. AMD's margins are improving, but they're still nowhere close to Nvidia's, nor will they ever be.
Nvidia's profit margins -- which are after tax -- are actually higher than AMD's gross margins -- which are pretax. This is incredible considering these two are in a similar industry. However, when you look at the breakdown of these two businesses, it's clear that AMD will never match Nvidia's margins without a complete overhaul.
Nvidia is heavily focused on graphic processing units (GPUs) and the hardware that supports them, particularly in its data center division, which is benefiting significantly from the AI build-out. Nvidia products have been the industry standard from the beginning, and AMD hasn't been able to wrest away that leadership. In Q2, $89 billion of Nvidia's $96.2 billion total revenue came from its data center division. Because this segment is supply-constrained and Nvidia has the premium product, it can charge a higher price and make a ton of profit from these devices.
AMD has a different business. While it also has heavy exposure to data centers, that exposure is not nearly as high. In Q2, AMD's data center division generated $6.7 billion in revenue out of a total of $11.5 billion. That leaves its other divisions with a much higher share of total revenue, and these divisions don't have nearly as good an operating profile as Nvidia's data center business.
Division
Revenue
Operating Income
Operating Margin
Data Center
$6.7 Billion
$2.1 Billion
31%
Client & Gaming
$3.8 Billion
$582 Million
15%
Embedded
$977 Million
$386 Million
40%
Because so much of AMD's business comes from lower-margin Client & Gaming division, it will never be able to catch Nvidia's margins in its current form.
This should secure Nvidia's place as having a higher valuation than AMD, but it doesn't. And that is a signal for investors to sell AMD and buy Nvidia instead.
Nvidia's stock is cheap
If we use forward earnings, which include margin improvements and growth that AMD investors can expect, we see a stark contrast between the two that has only recently emerged.
When we utilize next fiscal year's projections, this difference is even more apparent.
Nvidia is much cheaper than AMD while also being a better business. I think investors need to take advantage of this price mismatch and scoop up shares of Nvidia, as this deal won't last forever.
Should you buy stock in Nvidia right now?
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Keithen Drury has positions in Nvidia. The Motley Fool has positions in and recommends Advanced Micro Devices, Home Depot, and Nvidia. The Motley Fool recommends Lowe's Companies. The Motley Fool has a disclosure policy.

AMD and Nvidia Just Experienced an Unprecedented Valuation Split

Investors have piled into AI stocks, which could have left many portfolios exposed to this technology.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
*Stock prices used were the afternoon prices of Sept. 4, 2026. The video was published on Sept. 6, 2026.
Should you buy stock in Netflix right now?
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Parkev Tatevosian, CFA has positions in Netflix. The Motley Fool has positions in and recommends Netflix. The Motley Fool 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. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.

3 Undervalued Stocks to Buy That Are Relatively Protected From an AI Bubble Bursting

Key Points
These stocks are both Dividend Kings that offer above-average yields.
PepsiCo's yield is higher than Coca-Cola's, and its rate of increase has been more generous in recent years.
Coca-Cola, however, has stronger profit margins and a lower payout ratio.
Coca-Cola (NYSE:KO) and PepsiCo (NASDAQ:PEP) are iconic businesses, and their stocks are known for being among the best income-generating investments to own.
However, they've been going in vastly different directions. In the past three years, Coca-Cola's stock has risen by around 50%, while PepsiCo's has declined by 21%. And as dividend investors know, that means their yields have been going in opposite directions; Coca-Cola's yield has been shrinking while PepsiCo's has been rising.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
But there's more to assessing dividend stocks than just looking at their yields and past performances. Below, I'll look at both of these stocks to see which one is the best option for dividend investors right now, considering their yields, dividend growth rates, overall financial strength, and valuations.
Image source: Getty Images.
PepsiCo's yield is higher, and its increases have been more generous in recent years
Both PepsiCo and Coca-Cola have been increasing their payouts for more than 50 consecutive years, making them Dividend Kings. Past dividend growth doesn't guarantee future increases, but it is indicative of a company's commitment to growing the payout. Plus, it also demonstrates confidence in its future earnings growth.
Investors should also, however, consider the rate of dividend increases. A stock that raises its payout by just one cent would technically be increasing it, but that can mean minimal incremental dividend income for an investor. In the past five years, PepsiCo has raised its dividend at a noticeably higher rate than Coca-Cola.
PepsiCo already offers a higher yield of 4.3% versus 2.4% for Coca-Cola, which gives it the edge in this area. If this trend continues, the gap may grow larger in the future.
Coca-Cola has a leaner business and a lower payout ratio
Coca-Cola has a simpler, less complex business model than PepsiCo, which, in addition to beverages, also includes many top snacking brands. Its business is bulkier, and as a result, its margins are not as impressive as Coca-Cola's. While PepsiCo has averaged a profit margin of around 11% over the trailing 12 months, Coca-Cola's margin is up around 28%.
Furthermore, Coca-Cola's payout ratio of 63% is lower than PepsiCo's, which is around 75%. With a lower payout ratio and better margins, Coca-Cola may be in a stronger position to increase its dividend at a faster rate in the future -- but it's by no means a guarantee.
Investors are paying significantly more for Coca-Cola stock
As good a business as Coca-Cola may be, the stock itself is priced at a hefty premium. It's trading at a forward price-to-earnings (P/E) multiple of 25, which is based on analyst projections of its future earnings. By comparison, PepsiCo's forward P/E is only 15.
The risk with paying a high multiple is that it can limit future returns, and the stock may even be due for a decline if its valuation is highly inflated. While investors have been much more bullish on Coca-Cola's stock in recent years, that may not necessarily be the case in upcoming years, particularly with its forward P/E multiple being as high as it is right now.
PepsiCo is the dividend stock I'd buy today
Coca-Cola has better margins and a lower payout ratio, but that's not enough to make it the better overall dividend stock. Even if Coca-Cola's dividend increases are more generous in future years, the gap between the yields is already fairly significant. Without significant changes in their respective share prices, it could take a long time for Coca-Cola to catch up to PepsiCo.
Ultimately, I don't see a compelling reason why Coca-Cola should be worth a drastically higher premium than PepsiCo. Both businesses are doing well, and even if PepsiCo's rate hikes may not be as high moving forward, it already makes for a fairly safe, high-yielding investment today. At a discounted valuation, it looks to have much more potential upside than Coca-Cola.
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 $421,997!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,413,876!*
Now, it’s worth noting Stock Advisor’s total average return is 978% — a market-crushing outperformance compared to 213% 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.
David Jagielski, CPA 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.

Coca-Cola vs PepsiCo: What's the Better Dividend Stock to Buy Right Now?

The Coca-Cola Company KO is leaning further into premiumization as part of a broader strategy to capture consumers across different income levels and drinking occasions. Management emphasized that its revenue growth management approach is designed to address both affordability and premiumization, giving the beverage giant flexibility to adapt as consumer spending patterns shift.
The strategy is visible across markets. In the Asia Pacific, Coca-Cola continues to invest ahead of the curve to expand its consumer base while pursuing opportunities on both the affordability and premiumization fronts. In India, where Coca-Cola owns seven of the top 10 brands, management remains focused on strengthening brand equity and building capabilities to support growth. In North America, packaging is helping segment demand. Mini-can multipacks in retail are positioned toward convenience and premium occasions, while single mini cans in convenience stores provide lower entry price points.
This balanced approach makes premiumization appear strategically sound. Coca-Cola can use stronger brands, packaging variety and occasion-based pricing to encourage consumers willing to pay more without abandoning value-conscious shoppers. Management also noted that consumers continue to participate in the beverage category, with purchasing decisions increasingly centered on value rather than price alone.
However, the premium push carries risks. Lower-income consumers remain pressured globally, and economic conditions are uneven. Coca-Cola’s strategy therefore depends on maintaining the right balance. Premiumization can enhance revenue quality, but pushing too aggressively could weaken demand if affordability concerns intensify.
Are KO Peers PEP & MNST Also Pursuing Premiumization?
Like Coca-Cola, peers PepsiCo Inc. PEP and Monster Beverage Corporation MNST are also leaning on premium offerings and brand positioning to capture higher-value consumption occasions and support revenue growth.
PepsiCo’s premium push appears measured rather than aggressive. The company is expanding experience-led and functional offerings, including Pepsi “House of Treats,” Gatorade Lower Sugar, Propel Clear Protein and other innovations aimed at higher-value occasions. At the same time, PepsiCo is sharpening price-pack architecture and investing in affordability as consumer budgets tighten. This balanced approach can support mix and brand equity, though weaker North American demand raises execution risk for management.
Monster Beverage’s premiumization strategy appears well-balanced, supported by innovation, lifestyle positioning and premium offerings across a broad range of price points. Management highlighted strong demand for zero-sugar products, expanded package choices and selective pricing actions, while premium offerings coexist with affordable alternatives. The strategy can support revenues and margins, but higher aluminum, freight and fuel costs could pressure profitability if pricing fails to offset inflation.
Zacks Rundown for Coca-Cola
KO shares have rallied 8.3% in the past three months compared with the industry’s 3.4% growth.
Image Source: Zacks Investment Research
From a valuation standpoint, Coca-Cola is trading at a forward price-to-earnings ratio of 25.51X, higher than the industry’s 19.41X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for KO’s 2026 and 2027 earnings implies year-over-year growth of 9.7% and 7.1%, respectively. Earnings estimates for 2026 and 2027 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.
Zacks' Research Chief Names "Stock Most Likely to Double"
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This article originally published on Zacks Investment Research (zacks.com).

Coca-Cola's Premiumization Push: Smart Strategy or Risky Move?

Buy low, sell high. Those four words can make fortunes over time. And they work whether we're talking about real estate, stocks, or any other asset.
The great thing about investing in some stocks when they're down is that they pay you to wait for a rebound via dividends. Here are three dividend stocks trading near their 52-week lows.
1. Baxter International
Baxter International (NYSE: BAX) shares aren't just at their 52-week lows; they're at the lowest level in the last six years. The healthcare stock has lost roughly half of its value over the past 12 months.
The company's acquisition of Hill-Rom in late 2021 hasn't worked out as well as hoped. Baxter recorded an impairment of $3.1 billion related to the purchase in the third quarter of 2022.
Instead of adding new businesses, Baxter is now looking to pare down. It plans to spin off its renal care and acute therapies units into a separate publicly traded company over the next 12 to 18 months. The company is also exploring alternatives, including a sale or spinoff of its biopharma solutions business.
One bright spot for Baxter amid the generally bad news, though, is its dividend. The company has increased its dividend for seven consecutive years. Its dividend yield currently stands at close to 2.6%.
2. CVS Health
CVS Health (NYSE: CVS) fared better than most stocks last year, sliding less than 10%. However, the stock is near its 52-week low now after a big decline that began in December.
But CVS Health's business continues to perform relatively well. Total revenue in Q3 jumped 10% year over year to $81.2 billion. Although the company posted a net loss in the quarter, the culprits were $5.2 billion in opioid litigation charges and $2.5 billion related to plans to sell the Omnicare long-term care pharmacy business.
Despite the pending sale of Omnicare, CVS Health remains in growth mode. It expects to close on the acquisition of Signify Health, a provider of home health and healthcare technology services, in the first half of 2023. Earlier this month, rumors swirled that CVS could be interested in buying Oak Street Health. Whether a deal actually materializes remains to be seen.
There isn't any uncertainty about CVS Health's dividend, though. The company's dividend yield tops 2.7%. CVS didn't increase its dividend for several years because of its acquisition of Aetna. However, it has increased the dividend payout by 21% since late 2021.
3. L3Harris Technologies
It isn't just healthcare dividend stocks that are languishing these days. Shares of L3Harris Technologies (NYSE: LHX) recently set a 52-week low after beating the S&P 500 in 2022.
L3Harris faces some macroeconomic challenges, especially with high inflation and supply chain issues. The big aerospace and defense company's Q3 revenue was flat compared to the prior-year period. It also lowered full-year 2022 financial guidance.
Some investors are leery of L3Harris' plans to acquire Aerojet Rocketdyne for $4.7 billion. The valuation is higher than what Lockheed Martin offered to pay in late 2020. L3Harris will probably have to suspend share buybacks to fund the deal.
There hasn't been any talk of disruption to L3Harris' dividend, though. The company's dividend yield currently stands at nearly 2.3%. L3Harris has a great track record of dividend hikes, with its dividend payout nearly doubling over the last five years.
Are they buys?
I think that Baxter could be more appealing to investors after it completes the planned spinoff of the renal care and acute therapies business. For now, though, the stock doesn't provide a compelling reason to jump aboard.
L3Harris' pending acquisition of Aerojet Rocketdyne could be a smart move in retrospect, despite some skepticism. I view the stock as a potentially good pick for long-term investors. However, I'm not so sure L3Harris will be a winner over the near term.
That leaves CVS Health. My view is that the stock should again hold up relatively well if the U.S. economy enters a recession in 2023. Its dividend is dependable. I predict that CVS Health will deliver solid total returns over the long run. So of these three beaten-down stocks, CVS Health ranks as my favorite.
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Keith Speights has no position in any of the stocks mentioned. The Motley Fool recommends CVS Health and Lockheed Martin. The Motley Fool has a disclosure policy.
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