PepsiCo vs Hormel for Long-Term Investment: Are These Dividend Stocks Worth Buying in 2026?
PepsiCo (PEP) and Hormel (HRL) are under scrutiny as long-term investments. PEP closed at $141.34, offering a 4.19% dividend yield, while HRL closed at $21.95 with a 5.33% yield. PEP reported Q3 2026 revenue of $25.27B, up 5.6%, and adjusted EPS of $2.34. HRL reported Q3 net sales of $2.96B, down 2%, and adjusted EPS of $0.37. Both face challenges but offer dividend growth histories.
How this was made
The 30-second read
Why it matters
Both firms show mixed signals: PepsiCo beats earnings but trims guidance, while Hormel raises adjusted guidance and appoints a new CEO, creating divergent short‑term price pressures.
Market read
The piece offers a dividend‑focused comparison for long‑term investors, with limited immediate trading triggers.
What to watch
Potential upside from new product innovations and international pricing power not fully reflected in the guidance.
Background
The article compares two large U.S. consumer‑staples companies, PepsiCo and Hormel, focusing on dividend yields, recent quarterly results, and outlook.
Ticker impact
PepsiCo reported Q3 2026 earnings with 17% EPS increase but cut full-year core earnings guidance to 1-2% growth.
likely pressure as investors price in slower growth outlook
Higher EPS shows strength, yet reduced guidance signals earnings slowdown, prompting potential sell pressure.
Hormel Foods posted Q3 2026 results with modest sales, adjusted EPS guidance raised to $1.45‑$1.51 and a new CEO in place.
possible modest upside as market digests improved earnings outlook
Adjusted earnings guidance lift and CEO transition suggest operational improvements, which may attract income‑focused investors.
Market effects
Consumer staples dividend yields remain attractive, but earnings slowdown may pressure the sector.
U.S. consumer‑goods investors may re‑balance exposure between diversified giants and niche players.
Limited; the story is U.S.‑focused and does not affect broader global markets.
Counterpoint
Despite guidance cuts, PepsiCo's cash flow and dividend growth could still support a buy‑and‑hold thesis.
Key entities
- CompanyPepsiCo
Global food and beverage giant with diversified brands.
- CompanyHormel Foods
Food producer known for meat and packaged products.
