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Is PepsiCo (PEP) One of the 10 Best Dividend Stocks to Buy for Passive Income?

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PepsiCo, Inc. (NASDAQ:PEP) is included among the 10 Best Dividend Stocks to Buy for Passive Income.

Is PepsiCo (PEP) One of the 10 Best Dividend Stocks to Buy for Passive Income?
Is PepsiCo (PEP) One of the 10 Best Dividend Stocks to Buy for Passive Income?

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On June 25, Jefferies lowered its price recommendation on PepsiCo, Inc. (NASDAQ:PEP) to $162 from $164. It reiterated a Hold rating on the stock. In its Q2 earnings preview, the firm said PepsiCo’s year-to-date performance in the U.S. has “underwhelmed.” It also said that Q2 “does not appear to be an inflection point.” The analyst noted that this places greater importance on the company’s performance in the second half of the year.

On the same day, BofA lowered its price goal on PEP to $164 from $173. It maintained a Neutral rating on the shares. Ahead of the company’s Q2 earnings report, the firm reduced its Q2 and full-year 2026 EPS estimates. The analyst said the revisions reflect weaker-than-expected performance at PepsiCo Foods North America during the quarter and expectations that the recovery will take longer and extend into the second half of the year.

PepsiCo, Inc. (NASDAQ:PEP) is a multinational food and beverage company that manufactures, markets, and distributes a broad portfolio of well-known snacks, beverages, and convenient food products.

While we acknowledge the potential of PEP as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 10 Dividend Stocks With Low Payout Ratios and Strong Upside Potential and 10 Best Canadian Dividend Stocks to Buy for the Next 5 Years

Disclosure: None. Follow Insider Monkey on Google News.



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