The dream of early retirement is seeming less achievable these days. According to the latest Gallup poll, most Americans estimate that they won't be able to retire until the age of 66, while that projection sat at 64 just one year earlier. A declining stock market likely played a major role in reducing people's expectations around that key financial goal .

Ideally, an investor can construct a portfolio of stocks that, over time, puts early retirement closer and closer to reality. This portfolio should have a mix of solid growth and dividend income, and it shouldn't be too exposed to stock market volatility.

With these goals in mind, let's look at one stock that delivers this balance right now. Read on for some good reasons to add PepsiCo (PEP -0.38%) to your retirement portfolio.

Tasty growth

Pepsi just wrapped up a stellar fiscal year that saw organic sales jump 14% on top of huge gains in 2021. This result beat management's initial expectations. It also nearly kept pace with arch-rival Coca-Cola, which saw a 16% organic revenue gain -- and was far ahead of McCormick, which recently posted a 5% organic sales increase.

Sure, there were some warning signs in PepsiCo's late 2022 results. Sales volumes declined as consumers tightened their budgets slightly. But Pepsi was able to pass along much higher prices, indicating a level of pricing power that's rare in the stock market. That strength helped keep operating profit margin relatively stable despite massive cost pressures.

A bubbly dividend

If early retirement is years or decades away, you'll likely have time to watch Pepsi's dividend grow significantly. The dividend jumped 10% this past year, and the June payout will mark the company's 51st consecutive annual raise. With currency-adjusted earnings on pace to rise by about 8% in 2023, shareholders should be in for a similarly strong boost next year.

But the dividend only accounts for a portion of the cash returns that investors can expect while holding this stock. Pepsi spent $1.5 billion on stock buybacks last year and is aiming for at least $1 billion of spending in this category in 2023. That slightly slower rate shows that Pepsi can make aggressive investments in its growth initiatives while still sending plenty of cash to shareholders. That's the type of financial strength that can power market-thumping returns over time.

Looking ahead

Due to its dominant market position and strong cash flow, PepsiCo's stock is rarely valued cheaply on Wall Street. But weakness in the S&P 500 index has made its valuation more attractive lately. You can buy shares for less than 3 times sales today, down from recent highs of just over 3 times sales. PepsiCo costs 28 times earnings, too, down from a P/E ratio of 32 back in early 2022.

There are risks involved with any stock, and PepsiCo's returns will ultimately depend on its continued ability to innovate across its wide portfolio of snacks, breakfast foods, and beverages. Management has to be smart about allocating capital over the years, too, particularly in avoiding expensive acquisitions that don't add value to the enterprise.

But the consumer staples giant has a good track record on these points, enjoys solid growth and earnings momentum, and is priced reasonably given its positive outlook. Those factors make it more likely that the stock will be a positive force in your retirement portfolio, and potentially one that gives you more flexibility in deciding when you enter retirement.