Is PepsiCo a Buy, Sell, or Hold in 2025?
This legendary dividend stock is in its worst decline in years.
PepsiCo (NASDAQ: PEP) has been a productive investment for generations. The company makes enough money to share profits with investors via dividends and has raised the amount it pays for 52 consecutive years. You could call it a perk of selling beloved food and beverage products to a global customer base of roughly 8.2 billion people (and growing). There's just a seemingly endless runway for growth.
However, shares are in a slump. PepsiCo has declined 25% since its all-time high in 2023. It's a rare drop for such a respected company, its farthest fall since the financial crisis in 2007-2009. Should investors buy PepsiCo in 2025, or has the company peaked?
PepsiCo has grown for decades by selling more products, launching and acquiring new brands, and raising its prices. However, growth has increasingly depended on pricing since the COVID-19 pandemic. At face value, the chart below shows that business has been great, with impressive revenue growth over the past five years.
