Best Stock to Buy Right Now: PepsiCo vs. Kraft Heinz

Core Insights - PepsiCo is a Dividend King with a 52-year streak of annual dividend increases, indicating a strong business model [2] - Kraft Heinz offers a higher dividend yield of 5.4%, but its dividend has been stagnant at $0.40 per share since 2019, raising concerns for income investors [3][7] - PepsiCo is currently facing a business slowdown and broader industry challenges, yet it reported a 2% increase in organic sales and a 9% rise in core earnings per share for 2024 [4][5] Company Performance - PepsiCo's outlook for 2025 is subdued, with management guiding for similar organic sales growth and earnings rates, reflecting a return to slow and steady growth [6] - Kraft Heinz's organic sales among its key brands fell by 4.5% in Q3 2024 and another 5.2% in Q4 2024, indicating ongoing challenges [9] - PepsiCo appears to be managing its short-term issues effectively, while Kraft Heinz is still in a turnaround phase, which may prolong its stagnant dividend situation [10][11] Investment Considerations - Long-term dividend investors may find PepsiCo's consistent dividend growth more appealing compared to Kraft Heinz's stagnant dividend and ongoing turnaround efforts [11] - The current high yield of PepsiCo, despite its lower yield compared to Kraft Heinz, may attract income-focused investors looking for stability [3][6]