Core Insights - Licensing Expo 2026 is set to be a significant event in the global licensing industry, taking place from May 19-21, 2026, at the Mandalay Bay Convention Center in Las Vegas, featuring major brands and industry leaders [1][2] Industry Overview - The event will gather influential brands such as Netflix, Warner Bros. Discovery, LEGO, and The Coca-Cola Company, showcasing the latest trends and innovations in licensing [2][3] - Licensing Expo serves as a critical platform for brands across various sectors, including entertainment, sports, fashion, and gaming, making it essential for professionals in retail, branding, and consumer products [2][11] New Participants and Trends - New entrants like PepsiCo and Sony Pictures Television are expected to bring fresh opportunities for collaboration in licensing, particularly in food and beverages [3] - The rise of sports licensing is highlighted, with brands like Real Madrid FC and NASCAR participating, reflecting the growing importance of sports as a branding strategy [4] Fashion and Youth Engagement - The expo will feature brands that resonate with Gen Z, which constitutes 25% of the global population, showcasing merchandise from artists like Adele and Olivia Rodrigo [6] - Companies like Ceremony of Roses and tokidoki will present products that align with Gen Z's values of creativity and self-expression [6] Digital Innovation and Gaming - The gaming industry is a focal point, with companies like Riot Games and The Pokémon Company demonstrating how digital content is transforming consumer engagement [9] - Licensing Expo will highlight the intersection of gaming and merchandise, showcasing how brands create immersive experiences [9] Creativity and Cultural Impact - The event will celebrate creativity, featuring art and design innovators that redefine consumer experiences, emphasizing the role of creativity in licensing [10] - Major entertainment brands will showcase their cultural impact, reinforcing the connection between play and consumer engagement [8] Market Growth and Future Outlook - The global licensing market is projected to be worth $369.9 billion in 2025, indicating robust growth and opportunities for participants at Licensing Expo [13][17] - Licensing Expo is positioned as a platform for shaping the future of consumer products, connecting brands with emerging trends and consumer interests [13]

PresentationBonnie HerzogGoldman Sachs Group, Inc., Research Division Good morning, everyone. So, it's a pleasure to welcome PepsiCo back to CAGNY this year. Joining us today, we have Chairman and CEO, Ramon Laguarta; and Executive VP and CFO, Steve Schmitt. Also, please join me in thanking them for providing us with all of the amazing snacks and beverages today. So PepsiCo is the world's largest convenience food and beverage companies with more than $90 billion in revenue. PepsiCo is on a transformation jo ...

Core Insights - PepsiCo has maintained a dividend increase for over 50 consecutive years, earning it the title of Dividend King, which is highly regarded among income investors seeking reliable returns in retirement portfolios [1] - The company recently paid a quarterly dividend of $1.4225 per share, with an annualized dividend yield of approximately 3.5%, which is competitive compared to the current 10-year Treasury yield of 4.04% [1] - PepsiCo's free cash flow payout ratio reached 99.6% in fiscal 2025, indicating a tighter cash flow coverage compared to historical norms, but the dividend remains fully covered by free cash flow [1] Dividend Growth - Over the past decade, PepsiCo's quarterly dividend has increased from $0.7025 in 2016 to $1.4225 in 2026, reflecting a compound annual growth rate (CAGR) of approximately 7.3% [1] - The five-year CAGR stands at 6.8%, showcasing consistent mid-to-high single-digit growth through various economic cycles [1] - The most recent dividend increase was 5% year-over-year, indicating a commitment to sustainable growth rather than aggressive hikes [1] Cash Flow and Financial Health - In fiscal 2025, PepsiCo generated $7.67 billion in free cash flow while paying out $7.64 billion in dividends, resulting in a payout ratio of 99.6% [1] - Historical averages from 2015 to 2021 showed a free cash flow payout ratio of 60-85%, providing a cushion for reinvestment and unexpected challenges [1] - Operating cash flow of $12.09 billion offers substantial room for the company to manage its dividend obligations despite tighter free cash flow coverage [1] Management Commitment - CEO Ramon Laguarta emphasized a balanced approach to capital allocation during the February 3, 2026 earnings call, indicating expectations for growth in volume, net revenue, and operating margin [1] - The company announced a $10 billion share repurchase program for 2026-2030, reflecting confidence in its ability to return capital while maintaining dividend growth [1] Insider Confidence - In December 2025, five board members purchased shares at $149.51, indicating strong insider confidence in the company's long-term prospects [1] Investment Proposition - PepsiCo presents a compelling option for income-focused investors, offering a current yield competitive with investment-grade corporate bonds and a long track record of annual increases [1] - The stock has delivered a total return of 17.4% over the past year and 43% over five years, demonstrating that reliable dividends can coexist with capital appreciation [1]

Investment Strategy - The focus is on constructing investment portfolios that generate additional income through dividends by identifying companies with strong competitive advantages and excellent industry positioning [1] - Emphasis is placed on companies that can consistently increase dividend payments, providing attractive Dividend Yield and Dividend Growth [1] - The strategy aims to reduce dependence on broader stock market fluctuations by combining high Dividend Yield and Dividend Growth companies [1] Portfolio Diversification - A well-diversified portfolio across various sectors and industries is recommended to minimize volatility and mitigate risk [1] - Incorporating companies with a low Beta Factor is suggested to further reduce the overall risk level of the investment portfolio [1] - The investment portfolios typically consist of a blend of ETFs and individual companies, emphasizing broad diversification and risk reduction [1] Total Return Focus - The selection process for high dividend yield and dividend growth companies is meticulously curated, prioritizing total return, which includes both capital gains and dividends [1] - This approach ensures that the portfolio is designed to maximize returns while considering the full spectrum of potential income sources [1] - The goal is to create a well-crafted investment portfolio that generates extra income through dividends while reducing risk through diversification and prioritizing total return [1]

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PepsiCo (NasdaqGS:PEP) 2026 Conference February 18, 2026 09:00 AM ET Company ParticipantsBonnie Herzog - Member of the Board of DirectorsKevin Grundy - Managing DirectorRamon Laguarta - Chairman and CEOSteve Schmitt - EVP and CFOConference Call ParticipantsAndrea Teixeira - Managing Director and Senior Equity Research AnalystDara Mohsenian - Managing Director and Senior Equity AnalystMichael Lavery - Managing Director and Senior Research AnalystBonnie HerzogGood morning, everyone. It's a pleasure to welcome ...

HUNGRY & THIRSTY FOR GROWTH Ramon Laguarta Chairman & CEO Steve Schmitt CFO 2026 SAFE HARBOR STATEMENT & NON-GAAP INFORMATION Safe Harbor Statement Statements in this communication that are "forward - looking statements," including our guidance and long - term targets, are based on currently available information, operating plans and projections about future events and trends. Terminology such as "aim," "anticipate," "believe," "drive," "estimate, " "expect," "expressed confidence," "forecast," "future," "g ...

Quick Read PepsiCo (PEP) hiked its quarterly dividend distributions by 5% last year and is likely due for another dividend raise. Lowe’s (LOW) has a steady record of product sales and hiked its dividend by 4.3% in 2025. Emerson Electric (EMR) grew its net sales to $18.106 billion in fiscal 2025 and currently offers a respectable 1.46% dividend yield. A recent study identified one single habit that doubled Americans’ retirement savings and moved retirement from dream, to reality. Read more here. ...

Core Insights - PepsiCo Inc.'s international business is a key growth driver, generating $38 billion in revenues in 2025, accounting for over 40% of total net revenues and core segment operating profit [1][9] - The international segment achieved 4.5% organic revenue growth in 2025, with consistent performance across food and beverage categories [2][4] Financial Performance - The international segment recorded its 19th consecutive quarter of mid-single-digit organic revenue growth, alongside a 27% growth in core operating profit and a 225 basis points margin expansion in Q4 2025 [2][9] - PepsiCo's shares have increased by 15.7% year-to-date, outperforming the industry growth of 13.3% [8] Geographic Diversification - Growth is geographically diversified, with strong performance in markets such as Mexico, Brazil, Argentina, India, Germany, Egypt, and Thailand for food, and Mexico, the U.K., Spain, Poland, Pakistan, and Australia for beverages [3][4] Strategic Initiatives - Management anticipates a "long runway for profitable growth" driven by localized innovation, expanded distribution in developing markets, and increased participation in energy and functional categories [4] - The company is well-positioned for further scaling due to resilient demand, margin expansion, and sustained share gains in international markets [4] Valuation and Earnings Estimates - PepsiCo trades at a forward price-to-earnings ratio of 19.11X, compared to the industry average of 20.08X [10] - The Zacks Consensus Estimate for PepsiCo's earnings per share implies year-over-year growth of 5.4% and 6.7% for 2026 and 2027, respectively [11]

Core Viewpoint - The Invesco Food & Beverage ETF (PBJ) and the First Trust Nasdaq Food & Beverage ETF (FTXG) provide exposure to the U.S. food and beverage industry, with differences in risk, income potential, and trading characteristics that may influence investor decisions [1] Cost & Size - PBJ has an expense ratio of 0.61% and FTXG has a slightly lower expense ratio of 0.60% - As of February 14, 2026, PBJ has a 1-year return of 7.50% while FTXG has a return of 6.87% - The dividend yield for PBJ is 1.62% compared to FTXG's 2.60% - PBJ has a beta of 0.55 indicating higher volatility compared to FTXG's beta of 0.42 - Assets Under Management (AUM) for PBJ is $103.9 million while FTXG has $20.10 million [2] Performance & Risk Comparison - Over the past five years, PBJ experienced a maximum drawdown of -15.84% while FTXG had a larger drawdown of -21.71% - An investment of $1,000 in PBJ would have grown to $1,296 over five years, whereas the same investment in FTXG would have grown to $925 [4] Holdings Composition - FTXG tracks a smart beta index with 31 holdings, including major positions in PepsiCo, Archer-Daniels-Midland, and Mondelez International - PBJ also holds 31 stocks, with top holdings in Hershey, PepsiCo, and Sysco [5] Investment Implications - For long-term investments, PBJ has shown a 31% return over the last five years, while FTXG has decreased by 6.94% during the same period - Despite FTXG's higher dividend yield, PBJ offers a higher quarterly dividend payout due to its higher fund price [7] - The choice of top holdings may influence investor preference, with FTXG's leading asset being PepsiCo and PBJ's being Hershey [8] - Both ETFs can serve as valuable portfolio additions during economic downturns, as they consist of consumer defensive stocks that provide essential goods [9]