The Nasdaq Composite (NASDAQINDEX: ^IXIC) fell by 4% on Monday, marking its worst day since September 2022, and it remains 12.5% below its peak after today's trading. When major indexes reach new highs, it's easy to forget the advantages of dividend stocks. Companies like PepsiCo (NASDAQ: PEP), Chevron (NYSE: CVX), and Southern Company (NYSE: SO) offer high yields that can generate significant passive income.
As with any trade disagreement, the ongoing one between the U.S. and several major trading partners is impacting companies unevenly. Businesses that are hit by the tariffs are experiencing difficulties, while those that are not affected can feel relieved.
In 2024, PepsiCo struggled with tough pricing, losing market share, and stagnant sales. However, its low current valuation and the possibility of improved market sentiment make it an attractive defensive investment with room for growth. Although PepsiCo's forecast for 2025 indicates minimal growth, adjusting expectations could result in a valuation increase to a 20x multiple, aiming for $180.
The beginning of 2025 has been tougher for investors than the record highs seen in the stock market in 2024. The Nasdaq Composite index has dropped about 13% from its peak, as concerns grow about the economy and the impact of trade tariffs introduced by the Trump administration. Investors looking for stability amid the fluctuations might want to consider PepsiCo (NASDAQ: PEP) more closely.
Well-known investor Warren Buffett has a surprisingly straightforward aim. He wants to purchase strong companies at fair prices and keep them, allowing himself and Berkshire Hathaway's shareholders to gain from their growth over time. This approach remains unchanged, even if the market, like the Nasdaq Composite, experiences a decline or enters a bear market.
If you're searching for safer stocks, consider reliable dividend payers such as PepsiCo (NASDAQ: PEP), Enterprise Products Partners (NYSE: EPD), and Black Hills Corporation (NYSE: BKH). PepsiCo is a major player in the consumer staples sector, especially in salty snacks and drinks. In 2024, PepsiCo saw a 2% increase in organic revenue and a 9% rise in adjusted earnings.
Jefferies has changed its rating for PepsiCo Inc (NASDAQ:PEP) stock from "buy" to "hold" and has lowered its price target from $171 to $170.
The Nasdaq Composite has dropped significantly in the last few weeks. This is why I would be interested in purchasing more of these high-quality dividend stocks if the Nasdaq continues to decline. For instance, Broadcom's stock has decreased by around 25% from its highest price in the last year.
Dublin, March 11, 2025 (GLOBE NEWSWIRE) -- ResearchAndMarkets.com has included the company profile for "PepsiCo Inc in Snacks (World)" in its collection.
If you're thinking about purchasing PepsiCo (PEP 0.77%), it's nearly impossible to ignore Coca-Cola (NYSE: KO), and the same goes for the other way around. Both companies are well-known and are major players in the beverage industry worldwide.