Top Five Dividend Stocks to Buy Now
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 22 2026
0mins
Source: Fool
- PepsiCo's Dividend Appeal: PepsiCo (PEP) offers a dividend yield of 3.5%, surpassing Coca-Cola's 2.6%, and despite underperformance in its food and snack segment, initiatives like artificial dye-free chips are beginning to positively impact its financials, showcasing its competitive edge in the consumer goods sector.
- Pfizer's Future Outlook: Pfizer (PFE) anticipates launching eight new blockbuster drugs by 2030, potentially increasing annual revenue from $60 billion to $80 billion, and despite recent stock performance, its future growth prospects remain strong with a dividend yield of 6.3%.
- Stability of Realty Income: Realty Income (O) has paid monthly dividends since 1969 and has raised its per-share payment for over 31 years, currently yielding around 5%, with a 98.7% occupancy rate indicating resilience in the retail sector despite online shopping challenges.
- Verizon's Consistent Growth: Verizon (VZ) boasts a dividend yield of 5.8% and has increased its quarterly payment for 19 consecutive years, and while it may lack capital appreciation, its essential service dependency among American mobile users ensures a steady income stream, highlighting its long-term investment value.
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Analyst Views on PEP
Wall Street analysts forecast PEP stock price to fall
12 Analyst Rating
6 Buy
6 Hold
0 Sell
Moderate Buy
Current: 164.910
Low
144.00
Averages
161.90
High
172.00
Current: 164.910
Low
144.00
Averages
161.90
High
172.00
About PEP
PepsiCo, Inc. is a global beverage and convenient food company. The Company’s segments include PepsiCo Foods North America (PFNA), PepsiCo Beverages North America (PBNA), International Beverages Franchise (IB Franchise), Europe, Middle East and Africa (EMEA), Latin America Foods (LatAm Foods), and Asia Pacific Foods. PFNA segment includes all of its convenient food businesses in the United States and Canada. PBNA segment includes all of its beverage businesses in the United States and Canada. IB Franchise segment includes its international franchise beverage businesses, as well as its SodaStream business. EMEA segment includes its convenient food businesses and beverage businesses with Company-owned bottlers in Europe, the Middle East and Africa. LatAm Foods segment includes all of its convenient food businesses in Latin America. Asia Pacific Foods segment consists of its convenient food businesses in Asia Pacific, including China, Australia and New Zealand, as well as India.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Gatorade Launches Lower Sugar Hydration Innovation
- Lower Sugar Innovation: Gatorade's new lower sugar drink contains 75% less sugar than the original and is free from artificial flavors, sweeteners, or colors, targeting the 150 million Americans experiencing mild to moderate dehydration weekly, thereby enhancing the brand's competitiveness in the health beverage market.
- Science-Backed Formula: The product utilizes Gatorade's Sports Science Institute's proven electrolyte blend, providing better hydration than water, which further solidifies Gatorade's leadership in the sports drink sector and meets consumer demand for scientifically-backed hydration solutions.
- Diverse Product Line: The new drink is available in four flavors: Fruit Punch, Lemonade, Glacier Cherry, and Rain Berry, catering to various consumer taste preferences and enhancing brand appeal and customer loyalty in a competitive market.
- Marketing Strategy: Gatorade's SVP of Marketing, Anuj Bhasin, stated that the launch of the lower sugar drink aims to provide science-backed hydration solutions for everyday movers, further expanding the brand's product portfolio and enhancing its market image.
See More
Gatorade Launches Lower Sugar Hydration Innovation
- Product Innovation: Gatorade's launch of Lower Sugar hydration drink features 75% less sugar than the original, with no artificial flavors, sweeteners, or colors, targeting the 150 million Americans experiencing mild to moderate dehydration weekly, thereby enhancing its competitive edge in the health beverage market.
- Market Promotion: The new product will be available nationwide starting March 2026 in four flavors, aiming to attract consumers seeking science-backed hydration solutions, further solidifying Gatorade's leadership position in the sports drink sector.
- Brand Image Building: The new marketing campaign showcases various athletes and everyday movers, emphasizing how Gatorade Lower Sugar supports their daily activities, enhancing emotional connections with consumers and boosting brand loyalty.
- Strategic Positioning: As part of Gatorade's Advanced Hydration System, the Lower Sugar drink aims to meet consumer demands for electrolyte performance through scientific formulation, driving long-term growth in the health beverage market.
See More
Target Revamps Merchandise Strategy to Attract Shoppers
- Merchandise Strategy Overhaul: Target plans to revamp its merchandise strategy over the next year, expecting net sales to rise about 2% compared to last year, addressing the challenge of four consecutive quarters of declining customer traffic.
- Fresh Food Expansion: The company will expand the square footage dedicated to fresh foods, planning to double the space in over half of its remodeled stores, aiming to attract more customers for one-stop shopping.
- Beauty Product Upgrade: Target will launch a 'Beauty Studio' in over 600 stores, replacing its partnership with Ulta Beauty, focusing on prestige beauty brands to attract younger consumers and boost sales.
- Home Goods Reconstruction: With home goods sales declining nearly 7% year-over-year, Target plans to rebuild the display area for these products over the next few years, expecting to redesign 75% of its home decor items to regain market competitiveness.
See More
SJM Rises 9%, Yet Hostess Struggles Dampen Future Prospects
Strong Earnings Report: J.M. Smucker Co. (SJM) reported a 9% increase in stock prices following a strong earnings report, which included a double beat on earnings per share (EPS) and maintained a positive outlook for the full year.
Challenges in Sweet Baked Snacks Segment: Despite the positive earnings, the company faced significant losses in its Sweet Baked Snacks segment, attributed to nearly $1 billion in non-cash charges related to its Hostess acquisition, leading to a 19% decline in sales for that segment.
Future Outlook and Debt Management: Looking ahead, Smucker's financial position appears to strengthen with a free cash flow of $487 million and plans to pay down $500 million in debt annually, aiming for less than 3x leverage by the end of 2027.
Market Concerns and Stock Performance: Analysts have expressed caution regarding the impact of GLP-1 weight loss drugs on the company's future revenue, while SJM stock has shown resilience, trading above key moving averages despite recent pullbacks.
See More
Celsius Reports Strong Earnings Post-Alani Nu Acquisition
- Revenue Surge: Celsius reported a pro forma revenue increase of 136% to $370 million, driven by Alani Nu, with overall sales soaring 117% to $721.6 million, indicating strong growth potential in the beverage market.
- Brand Performance Discrepancy: While Celsius brand revenue fell 7.7%, Alani Nu's retail sales surged 76.9%, and Rockstar contributed $45 million in sales, reflecting initial success in brand integration and shifting market demands.
- Profitability Improvement: Adjusted earnings per share (EPS) jumped 86% to $0.26, and adjusted EBITDA climbed 113% to $134.1 million, showcasing significant enhancements in profitability, with expectations for further gross margin improvements.
- Market Expansion Plans: Celsius aims to expand its international presence, currently in 10 markets, anticipating increased shelf space, particularly following the distribution transition with PepsiCo, which will further enhance brand global reach.
See More
Celsius Sees Strong Growth Driven by Alani Nu
- Revenue Surge: Celsius's revenue surged 136% to $370 million driven by Alani Nu, with overall sales soaring 117% to $721.6 million, indicating strong market demand and brand appeal.
- Profitability Improvement: Adjusted earnings per share (EPS) jumped 86% to $0.26, while adjusted EBITDA climbed 113% to $134.1 million, reflecting significant progress in cost control and operational efficiency.
- Market Expansion Plans: Celsius plans to expand its international presence, currently in 10 markets, and aims to drive further growth through increased shelf space and the launch of a non-carbonated line.
- Valuation Reasonable: The stock trades at about 34 times 2026 analyst estimates, which is considered reasonable given its strong growth potential, although investors should be cautious as growth may slow in the future.
See More
Gatorade Launches Lower Sugar Hydration Innovation
- Lower Sugar Innovation: Gatorade's new lower sugar drink contains 75% less sugar than the original and is free from artificial flavors, sweeteners, or colors, targeting the 150 million Americans experiencing mild to moderate dehydration weekly, thereby enhancing the brand's competitiveness in the health beverage market.
- Science-Backed Formula: The product utilizes Gatorade's Sports Science Institute's proven electrolyte blend, providing better hydration than water, which further solidifies Gatorade's leadership in the sports drink sector and meets consumer demand for scientifically-backed hydration solutions.
- Diverse Product Line: The new drink is available in four flavors: Fruit Punch, Lemonade, Glacier Cherry, and Rain Berry, catering to various consumer taste preferences and enhancing brand appeal and customer loyalty in a competitive market.
- Marketing Strategy: Gatorade's SVP of Marketing, Anuj Bhasin, stated that the launch of the lower sugar drink aims to provide science-backed hydration solutions for everyday movers, further expanding the brand's product portfolio and enhancing its market image.
See More
Gatorade Launches Lower Sugar Hydration Innovation
- Product Innovation: Gatorade's launch of Lower Sugar hydration drink features 75% less sugar than the original, with no artificial flavors, sweeteners, or colors, targeting the 150 million Americans experiencing mild to moderate dehydration weekly, thereby enhancing its competitive edge in the health beverage market.
- Market Promotion: The new product will be available nationwide starting March 2026 in four flavors, aiming to attract consumers seeking science-backed hydration solutions, further solidifying Gatorade's leadership position in the sports drink sector.
- Brand Image Building: The new marketing campaign showcases various athletes and everyday movers, emphasizing how Gatorade Lower Sugar supports their daily activities, enhancing emotional connections with consumers and boosting brand loyalty.
- Strategic Positioning: As part of Gatorade's Advanced Hydration System, the Lower Sugar drink aims to meet consumer demands for electrolyte performance through scientific formulation, driving long-term growth in the health beverage market.
See More
Target Revamps Merchandise Strategy to Attract Shoppers
- Merchandise Strategy Overhaul: Target plans to revamp its merchandise strategy over the next year, expecting net sales to rise about 2% compared to last year, addressing the challenge of four consecutive quarters of declining customer traffic.
- Fresh Food Expansion: The company will expand the square footage dedicated to fresh foods, planning to double the space in over half of its remodeled stores, aiming to attract more customers for one-stop shopping.
- Beauty Product Upgrade: Target will launch a 'Beauty Studio' in over 600 stores, replacing its partnership with Ulta Beauty, focusing on prestige beauty brands to attract younger consumers and boost sales.
- Home Goods Reconstruction: With home goods sales declining nearly 7% year-over-year, Target plans to rebuild the display area for these products over the next few years, expecting to redesign 75% of its home decor items to regain market competitiveness.
See More
SJM Rises 9%, Yet Hostess Struggles Dampen Future Prospects
Strong Earnings Report: J.M. Smucker Co. (SJM) reported a 9% increase in stock prices following a strong earnings report, which included a double beat on earnings per share (EPS) and maintained a positive outlook for the full year.
Challenges in Sweet Baked Snacks Segment: Despite the positive earnings, the company faced significant losses in its Sweet Baked Snacks segment, attributed to nearly $1 billion in non-cash charges related to its Hostess acquisition, leading to a 19% decline in sales for that segment.
Future Outlook and Debt Management: Looking ahead, Smucker's financial position appears to strengthen with a free cash flow of $487 million and plans to pay down $500 million in debt annually, aiming for less than 3x leverage by the end of 2027.
Market Concerns and Stock Performance: Analysts have expressed caution regarding the impact of GLP-1 weight loss drugs on the company's future revenue, while SJM stock has shown resilience, trading above key moving averages despite recent pullbacks.
See More
Celsius Reports Strong Earnings Post-Alani Nu Acquisition
- Revenue Surge: Celsius reported a pro forma revenue increase of 136% to $370 million, driven by Alani Nu, with overall sales soaring 117% to $721.6 million, indicating strong growth potential in the beverage market.
- Brand Performance Discrepancy: While Celsius brand revenue fell 7.7%, Alani Nu's retail sales surged 76.9%, and Rockstar contributed $45 million in sales, reflecting initial success in brand integration and shifting market demands.
- Profitability Improvement: Adjusted earnings per share (EPS) jumped 86% to $0.26, and adjusted EBITDA climbed 113% to $134.1 million, showcasing significant enhancements in profitability, with expectations for further gross margin improvements.
- Market Expansion Plans: Celsius aims to expand its international presence, currently in 10 markets, anticipating increased shelf space, particularly following the distribution transition with PepsiCo, which will further enhance brand global reach.
See More
Celsius Sees Strong Growth Driven by Alani Nu
- Revenue Surge: Celsius's revenue surged 136% to $370 million driven by Alani Nu, with overall sales soaring 117% to $721.6 million, indicating strong market demand and brand appeal.
- Profitability Improvement: Adjusted earnings per share (EPS) jumped 86% to $0.26, while adjusted EBITDA climbed 113% to $134.1 million, reflecting significant progress in cost control and operational efficiency.
- Market Expansion Plans: Celsius plans to expand its international presence, currently in 10 markets, and aims to drive further growth through increased shelf space and the launch of a non-carbonated line.
- Valuation Reasonable: The stock trades at about 34 times 2026 analyst estimates, which is considered reasonable given its strong growth potential, although investors should be cautious as growth may slow in the future.
See More
