Chart of the Day: PepsiCo (PEP)
One of the smartest ways to build long-term wealth is by investing in down, but not out stocks—especially those with attractive dividend yields. Not only do you get the potential for price appreciation as the stock recovers, but you also collect dividend income along the way.
A prime example is PepsiCo (PEP).
PepsiCo’s Dividend Strength
Currently yielding 3.95%, PepsiCo has proven itself as a reliable income play. The company just declared a quarterly dividend of $1.4225, payable on September 30 to shareholders of record as of September 5.
That dividend announcement marks PepsiCo’s 53rd consecutive annual increase since 1965—a testament to its consistency and shareholder-friendly approach.
Technical Outlook: A Potential Recovery Move
After dipping to around $140 a share, PEP has started to pivot higher, recently trading at $144.23. Near-term, we’d like to see the stock retest resistance at $155, a level analysts believe is within reach given the company’s fundamentals and recent developments.
Activist Pressure and Analyst Support
Adding to the bullish outlook, activist investor Elliott Management recently revealed a $4 billion stake in PepsiCo, calling it “a rare chance to revitalize a leading global enterprise and unlock significant shareholder value.”
Following that move, analysts at TD Cowen raised their price target to $155, aligning with the technical rebound we’re watching closely.
Why It Matters for Investors
For dividend investors, PepsiCo offers both steady income and a potential capital appreciation opportunity. Its long history of rewarding shareholders, combined with activist involvement and improving technicals, make PEP an attractive “buy-the-dip” candidate.
About the Author
Ian Cooper is an experienced trader who combines technical, fundamental, and news analysis to help individual investors grow their wealth. Learn more through Ian’s Premium Options Strategies.