PepsiCo (PEP): Dividend King, Portfolio Transformation
PepsiCo (PEPUSDT) is one of the largest food and beverage companies in the world, generating close to $92 billion in annual revenue across brands such as Pepsi, Lay’s, Doritos, Gatorade, and Quaker. With 53 consecutive years of dividend increases and a yield around 4%, PepsiCo is often viewed as a defensive stock built on stable cash flows, pricing power, and resilient consumer demand.
At the same time, the company is actively reshaping its portfolio. Recent acquisitions, including Poppi and Siete Foods, reflect a shift toward better-for-you products, while international markets continue to deliver steady growth. In Q3 2025, PepsiCo exceeded earnings expectations despite volume pressure in North America.
📈 Trade PepsiCo 24/7 on Bitget
Starting on February 7, 2026 you can now trade stock futures / stock perpetual contracts 24/7 on Bitget.
What Does PepsiCo Do?
PepsiCo operates through seven segments covering beverages and convenient foods.
Beverages
Brands include Pepsi-Cola, Mountain Dew, Gatorade, Tropicana, Aquafina, and the recently acquired Poppi prebiotic soda. PepsiCo is the world’s second-largest beverage company, behind Coca-Cola.
Convenient Foods
This segment includes Frito-Lay brands such as Lay’s, Doritos, Cheetos, and Tostitos, as well as Quaker Oats and Siete Foods. PepsiCo holds a dominant position in the global savory snacks market.
Geographic mix
North America contributes roughly 60% of revenue, with the remaining 40% coming from international markets across Latin America, Europe, Asia Pacific, and Africa/Middle East.
Scale
PepsiCo products are consumed more than one billion times per day in over 200 countries. The company has 23 brands that each generate more than $1 billion in annual retail sales.
Recent News & Key Developments
| Development | Details |
| Poppi acquisition | $1.95B purchase of a prebiotic soda brand, closed May 2025, targeting Gen Z wellness trends |
| Siete Foods acquisition | $1.2B acquisition in October 2024, expanding clean-label and Mexican-American offerings |
| Elliott investment stake | $4B activist position focused on operational efficiency |
| Rockstar divestiture | Sale of U.S. and Canada energy drink business to Celsius in September 2025 |
| Zero Sugar growth | Pepsi Zero Sugar delivering double-digit revenue growth |
PepsiCo’s portfolio transformation is aimed at aligning with changing consumer preferences. Poppi’s retail sales grew more than 50% year to date, while Siete Foods is expected to exceed $700 million in annual revenue. Alongside this, the company continues to invest in snack categories positioned as more permissible, such as Stacy’s pita chips and Quaker rice cakes.
International beverages have delivered 18 consecutive quarters of mid-single-digit organic revenue growth, with strength across markets including Brazil, the UK, Turkey, China, and other emerging economies.
Financial Health & Key Metrics
| Metric | Q3 2025 | Notes |
| Revenue | $23.94B | +2.6% year over year, above estimates |
| Core EPS | $2.29 | Beat $2.26 consensus |
| Gross margin | 54.7% | Reflects pricing power |
| Operating cash flow | $5.5B YTD | Supports dividend payments |
| Cash position | $8.1B | — |
| Long-term debt | $44.1B | — |
For 2025, management guided for low-single-digit organic revenue growth and roughly flat core EPS on a constant-currency basis. Cost controls and mix improvements are expected to support profitability as North American volumes stabilize.
Source: statista.com
Dividend History & Stability
PepsiCo is classified as a Dividend King, a group of companies with more than 50 consecutive years of dividend increases.
| Dividend metric | Value |
| Consecutive annual increases | 53 years |
| Annual dividend | $5.69 per share |
| Current yield | ~3.9–4.1% |
| Quarterly payment | $1.4225 per share |
| 5-year dividend growth rate | 7.03% |
| Payout ratio | ~65–70% |
The company has paid uninterrupted quarterly dividends since 1965. For 2025, PepsiCo expects to return approximately $8.6 billion to shareholders, primarily through dividends, with a smaller allocation to share repurchases.
Source: fool.com
Industry & Competitive Landscape
| Competitor | Strength | PepsiCo comparison |
| Coca-Cola | Beverage leadership, higher margins | PepsiCo benefits from snack diversification |
| Keurig Dr Pepper | Coffee and soft drinks | PepsiCo has broader global reach |
| Mondelez | Global snack portfolio | PepsiCo dominates savory snacks |
| Monster / Celsius | Energy drinks | PepsiCo divested Rockstar, retains stake in Celsius |
A key advantage is PepsiCo’s direct-store-delivery network, which provides shelf access and execution speed that is difficult for competitors to replicate. The combination of beverages and snacks creates cross-selling leverage at the retail level.
Analyst Ratings & Valuation
| Metric | Value |
| Consensus rating | Buy |
| Average price target | $160 |
| Target range | $115–$180 |
| Forward P/E | ~17–18x |
Following a pullback from 52-week highs near $180, PepsiCo trades below its historical valuation averages. Some analysts view this as an attractive entry point, particularly if North American trends improve.
PEP stock price over the years after Earnings report
Release Timing: PepsiCo typically reports its Q4 and full-year results in the second week of February, rather than January. Consequently, the "January price" usually reflects market anticipation or "run-up" leading into the report.
Growth Trend: Over the last decade, PEP has shown a consistent upward trajectory, nearly doubling from its 2016 levels before reaching a peak near $180-$190 in mid-2023.
Volatility: While PEP is considered a defensive staple, it has seen sharper reactions in recent years (e.g., a -4.5% drop after the Feb 2025 report) due to shifting consumer trends and inflationary pressures.
Deep Dive: Sustainability Initiatives (pep+)
PepsiCo's sustainability strategy centers on pep+ (PepsiCo Positive), launched in 2021:
Climate Goals (revised May 2025):
● Net-zero emissions by 2050 (extended from 2040)
● 50% reduction in Scope 1 & 2 emissions by 2030
● 42% reduction in Scope 3 energy/industry emissions by 2030
Packaging Progress:
● 93% of packaging recyclable, reusable, or compostable in key markets (2024)
● Target: 97% by 2030
● 5% virgin plastic reduction achieved in 2024 (exceeded 2% annual target)
● Paper-based packaging replacing plastic in Walkers multipacks (UK)
Agriculture:
● Regenerative farming practices on 7 million acres
● Water positive goal by 2030 in high-risk watersheds
Challenges acknowledged: PepsiCo revised targets in May 2025, citing external barriers like limited recycling infrastructure and regulatory differences (e.g., China doesn't allow recycled PET in food packaging). The company sunset its formal reuse target while continuing reuse pilots.
Risk Factors
| Risk | Details |
| North America Volume Decline | Frito-Lay and beverages volumes falling; pricing can only offset so much |
| GLP-1 Drug Impact | Weight-loss medications may reduce snack/soda consumption long-term |
| Commodity Inflation | Input costs pressure margins despite pricing power |
| Currency Headwinds | Strong dollar impacts international revenue translation |
| Health Trends | Shifting consumer preferences away from traditional sodas and chips |
| Activist Pressure | Elliott's $4B stake may push for structural changes |
How to Trade PepsiCo on Bitget
PepsiCo's defensive characteristics make it attractive for income-focused strategies, while earnings volatility creates trading opportunities. Bitget Stock Futures offer advantages:
| Feature | Benefit |
| 24/7 Trading | React to earnings releases and news outside U.S. market hours |
| Up to 25x Leverage | Amplify positions on a typically lower-volatility stock |
| 90% Fee Discount | Limited promotion until April 30, 2026 |
| Long or Short | Profit from rebounds or further weakness |
| USDT Settlement | Trade with crypto collateral |
How to Trade PEP Futures:
1. Log into Bitget → Futures → USDT-M → Search "PEP"
2. Select leverage (defensive stocks like PEP allow higher leverage with controlled risk)
3. Choose Long (bullish) or Short (bearish)
4. Set stop-loss and take-profit levels
5. Confirm position
More Bitget Stock Promotions:
● 0 Gas, 0 Fee Tokenized Stocks
FAQ
Is PepsiCo a good dividend stock?
PepsiCo is a Dividend King with 53 consecutive years of increases and a ~4% yield—well above the S&P 500 average. The dividend is supported by strong cash flows and a ~65% payout ratio, leaving room for continued growth. For income investors, PEP offers reliable quarterly payments with a history of 7%+ annual increases.
Why is PepsiCo stock down from highs?
PEP declined from $180 to ~$145 due to North American volume weakness, concerns about GLP-1 weight-loss drugs impacting snack demand, and broader rotation out of consumer staples into growth stocks. However, this has improved valuation to ~17x forward earnings—below historical averages.
Can I trade PepsiCo outside market hours?
Yes. Bitget Stock Futures enable 24/7 PEP trading. This is valuable for reacting to quarterly earnings (next: February 3, 2026) or news events outside regular U.S. trading hours.
Conclusion
PepsiCo combines defensive characteristics with ongoing portfolio transformation. Its long dividend history appeals to income-focused investors, while acquisitions like Poppi and Siete Foods position the company for evolving consumer trends.
At current valuations, the stock trades below historical averages following its recent pullback. For traders seeking continuous access around earnings and macro events, stock futures offer a way to engage with PEP beyond standard market hours.
Disclaimer: This article is for educational purposes only and does not constitute financial advice. Stock futures trading involves significant risk of loss. Past performance does not guarantee future results. Always conduct your own research.