PepsiCo and Kraft Heinz: Dividend Yields and Market Outlook

Investor Focus: PepsiCo aims for stability with 52 years of dividends while Kraft Heinz struggles with stagnant payouts, raising concerns over future growth prospects.

Date: 16-02-2025

AI Rating: 5

Dividend Analysis
PepsiCo stands out as a dividend stalwart with a consistent history of 52 consecutive years of dividend increases, reflecting a robust business model. Conversely, Kraft Heinz's dividend has remained stagnant since 2019, which poses a concern for investors seeking growth in this area.

Earnings Per Share (EPS)
PepsiCo reported a core EPS increase of 9%, showing a positive trajectory even amidst a business slowdown. This performance could bolster investor confidence, as growth in EPS often correlates with higher stock valuations.

Revenue Growth
Despite the broader industry challenges, PepsiCo's organic sales grew by 2% in 2024, indicating some level of resilience. However, Kraft Heinz's organic sales declined by 4.5% and further by 5.2%, suggesting serious underlying issues that could deter investment.

Stock Market Outlook
Overall, while both companies face market pressures, PepsiCo's long-standing commitment to dividends and sustained EPS growth present a more stable opportunity. In contrast, Kraft Heinz's stagnant dividends and negative sales growth could lead to diminished stock performance, making it a riskier investment for potential future returns.

Stocks: PEP KHC