PepsiCo (PEP 0.8%) is one of the largest companies in the world -- and for investors looking for well-established businesses, Pepsi stock is worth considering. It's great for passive income because it pays a generous dividend and often increases the dividend amount. The food and beverage company also owns quite a few recognizable brands.
How to buy
How to buy Pepsi stock
Here's a step-by-step look at how to invest in Pepsi stock:
- Open your brokerage app: Log in to your brokerage account where you handle your investments.
- Search for the stock: Enter the ticker (PEP) or company name into the search bar to bring up the stock's trading page.
- Decide how many shares to buy: Consider your investment goals and how much of your portfolio you want to allocate to this stock.
- Select order type: Choose between a market order to buy at the current price or a limit order to specify the maximum price you're willing to pay.
- Submit your order: Confirm the details and submit your buy order.
- Review your purchase: Check your portfolio to ensure your order was filled as expected and adjust your investment strategy accordingly.
A brokerage account is how you invest in publicly traded companies like Pepsi, as well as other types of investments, such as bonds and mutual funds. Don't have a brokerage account yet? You can find our experts' favorites on our list of the best stock brokers.
Should I invest?
Should I invest in Pepsi stock?
Pepsi could be a good investment if you're looking for a high-dividend stock. It's fairly low risk, as it's one of the biggest food and beverage companies in the world. But it's also been a low-growth company lately.
Revenue was basically flat from 2023 to 2024, going from $91.5 billion to $91.9 billion. Pepsi stock also hasn't done much in recent years. Between June 2020 and June 2025, the share price decreased by 1%.
The main selling point of Pepsi as a business is its diverse portfolio of food and beverage products. That's one of its key advantages over rival Coca-Cola (KO 1.27%). Coca-Cola may have the lead as a beverage company, but Pepsi has an impressive 23 billion-dollar brands (brands that make at least $1 billion per year). In addition to its signature soda line, major Pepsi brands include:
- Mountain Dew.
- Frito-Lay.
- Quaker food and snacks.
- Tropicana.
- Aquafina.
On the downside, Pepsi's profit margins aren't the best. Operating margin in 2024 was 14.0%, compared to 21.2% for Coca-Cola. Even though Pepsi made almost twice as much revenue, Coca-Cola still came out ahead in terms of net income ($10.6 billion in 2024 compared to $9.6 billion for Pepsi). The difference in profit margins is one of the reasons some choose to invest in Coca-Cola stock instead of Pepsi.
To its credit, Pepsi has done a good job of adding quality brands to its portfolio. It typically makes one major acquisition per year, with some of the more notable examples being its acquisitions of Rockstar Energy Drink in 2020, Siete Family Foods in 2024, and prebiotic soda brand Poppi in 2025.
Profitability
Is Pepsi profitable?
Pepsi is profitable, with net income of $9.6 billion in 2024. That was a 5% year-over-year increase from 2023. Although Pepsi usually only delivers modest growth, it has been consistently profitable over the years.
Dividends
Does Pepsi pay a dividend?
Yes, Pepsi pays a dividend. The dividend amount was $1.4225 per share as of June 2025. Pepsi is one of the better dividend stocks because it has a high annual dividend yield and has consistently raised its dividend amount for more than 50 consecutive years, making it a Dividend King.
ETF options
ETFs with exposure to Pepsi
Since Pepsi is such a large company, many exchange-traded funds (ETFs) offer exposure to it. If you'd rather invest in an ETF to spread your money across more companies, here are some of the best Pepsi ETF options:
- The iShares U.S. Consumer Staples ETF (IYK 1.24%) is the ETF with the largest percentage allocated to Pepsi stock. It aims to track an index of equities in consumer staples, including food and consumer goods.
- The First Trust Nasdaq Food & Beverage ETF (FTXG 1.09%) aims to track an index of companies in the food and beverage industry. Pepsi is one of its main holdings, along with Coca-Cola and Kraft Heinz (KHC 1.63%).
- The Schwab U.S. Dividend Equity ETF (SCHD 0.79%) aims to track the Dow Jones U.S. Dividend 100™ Index. As you'd expect, it's an excellent choice if you're looking for an ETF with lots of quality dividend stocks.
Those are just a few of the ETFs with heavy allocations of Pepsi stock. There are also broader index funds, such as the Vanguard S&P 500 ETF (VOO 0.6%), which aims to track the S&P 500, and the Invesco QQQ ETF (QQQ 0.73%), a Nasdaq-100 index fund. These provide a more diverse range of investments but have smaller Pepsi allocations.
Exchange-Traded Fund (ETF)
Stock splits
Will Pepsi stock split?
Pepsi hasn't announced any plans for a stock split, but it's certainly a possibility. The company has split its stock four times over the years to keep its share price down. That share price has increased quite a bit over the years and is now much higher than in 1996, before its most recent stock split.
The share price for Pepsi is also significantly higher than rival Coca-Cola's. A stock split could be a way for Pepsi to lower its price and become more attractive to potential investors.
Related investing topics
The bottom line on Pepsi stock
If you want to invest in Pepsi, you have several options. The most straightforward option is to buy Pepsi stock yourself through a brokerage account. For a more diversified investment, you can pick one of the many ETFs with exposure to Pepsi.
As far as whether you should put your money in Pepsi, that depends on your goals and the current makeup of your investment portfolio. It's probably not a company that's going to deliver significant growth. But Pepsi stock could be a smart choice if you're looking for something safe and with a great dividend.
FAQ
Investing in Pepsi FAQ
Is Pepsi a buy or sell stock?
Pepsi could be a good stock for those who want to invest in a major food and beverage company at a reasonable price. Revenue hasn't grown much recently, though, and its profit margins don't compare well to Coca-Cola. It's likely not the best choice for growth-focused investors.
Has Pepsi stock ever split?
Yes, Pepsi stock has split four times. Here are the stock-split dates and ratios for Pepsi:
- May 31, 1977: 3-for-1 stock split.
- May 29, 1986: 3-for-1 stock split.
- Sept. 5, 1990: 3-for-1 stock split.
- May 29, 1996: 2-for-1 stock split.
What is the forecast for Pepsi?
Forecasts for Pepsi predict modest growth of about 6% over the next year. However, there is a range of estimates from analysts and no way to predict exactly what will happen with Pepsi stock.
