Will Pepsi Stock Hit a New All Time High in 2026?

Morningstar screened US stocks in its Dividend Composite Index covered by its analysts for undervalued names that raised dividends by at least 2% in May, excluding those with yields below 1.07%. Four companies qualified: PepsiCo, Lowe’s, Northrop Grumman, and Devon. Morningstar also assigned “Exemplary” capital allocation ratings to PepsiCo, Lowe’s, Northrop, and Devon, citing dividend growth and balance-sheet strength.

PepsiCo restructured its credit facilities on May 22, 2026 to support short- and long-term liquidity, replacing a $5 billion 364-day revolver with a new $5 billion facility expiring May 21, 2027 and extending a $5 billion five-year agreement through May 22, 2031 with a €1.2 billion swingline subfacility. Citibank manages both, with capacity expansion up to $5.75 billion. Separately, PepsiCo declared a $1.48 quarterly dividend per share, payable June 30, 2026, up about 4% year over year.

The article highlights Dividend Kings, focusing on PepsiCo and Becton Dickinson. It says PepsiCo has raised its dividend for 54 straight years, with a ~3.9% yield and a recent ~4% increase, and notes organic revenue growth of 1%–3% per quarter. For Becton Dickinson, it cites 53 years of dividend growth, a ~2.8% yield, and fiscal 2026 guidance of EPS $14.75–$15.05 (midpoint) and low single-digit revenue growth.

RBC Capital Markets said in a research note that the “K-shaped economy” is structural, not cyclical, and will intensify through the decade, pushing consumer goods firms toward “barbell” portfolios with growth at the extremes and little in the middle. It cited widening gaps in AI access, wealth, healthspan, and education. RBC analyst Nik Modi warned Amazon and Temu could disintermediate brands.

Mizuho Markets Americas LLC significantly reduced its stake in PepsiCo, Inc. by 75.9% in the fourth quarter, though it still holds shares valued at $36.73 million. This comes as PepsiCo reported better-than-expected quarterly earnings, raising its dividend and authorizing a $10 billion share buyback program. The company faces both positive sentiment regarding its growth and defensive qualities, as well as negative sentiment due to ongoing margin pressures from increased costs and tariff uncertainty.

Van Hulzen Asset Management LLC significantly increased its stake in PepsiCo, Inc. (NASDAQ:PEP) by 365.2% in the fourth quarter, now holding 117,612 shares valued at approximately $16.88 million. This comes after PepsiCo reported strong quarterly results, exceeding EPS and revenue estimates, and announced an increased quarterly dividend of $1.48 per share along with a $10 billion share buyback plan. Despite positive sentiment from distribution stability, sustainability efforts, and product innovation, cost inflation and price increases remain concerns for PepsiCo's snack business.