PepsiCo (PEP) yields about 4.4%, more than four times the S&P 500's roughly 1.1%. Third-quarter revenue rose 3% year over year, and its annual dividend payout of $5.92 per share is up from $4.60 in 2022 and $3.22 in 2017. The stock trades at a forward P/E of 15.5, below its five-year average of 20.3, and a price-to-sales ratio of 1.86 versus a five-year average of 2.48. The company has faced health-conscious consumers and weight-loss drug use, and is responding with price cuts and healthier products. The author views the stock as a potential fit for a long-term portfolio, given its dividend.
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