Motley Fool calls beaten-down PepsiCo and Hormel long-term buys
The gist
Motley Fool's Reuben Gregg Brewer argued PepsiCo and Hormel are worth holding for a decade on high yields.
Both are Dividend Kings whose shares sit well below five-year highs.
How it unfolded
- Mar 25, 2026Hormel stock was reported down over 52% in the past five years, while PepsiCo was described as a Dividend King with 53 years of consecutive dividend growth.
- Mar 30, 2026Elliott Investment Management was reported to have recently taken a $4 billion stake in PepsiCo, with a strategy to unlock value by focusing on core strengths rather than capital-intensive bottling operations.
- Nov 5, 2026PepsiCo traded at USD 144.63 with a 4.16% dividend yield; Hormel yielded 5.14% at USD 22.98. PepsiCo traded at about 17 times trailing adjusted earnings versus a five-year average of roughly 23, and Hormel at 16x versus 21x.
Key terms
- consumer staples
- Everyday products sold quickly at low cost, such as packaged foods, beverages and toiletries.
- organic sales
- Revenue growth from higher output, more customers and new products, excluding mergers and acquisitions.
Source: Wikipedia