PepsiCo's current dividend yield has reached approximately 4%, a historically high level, as the company's stock price has fallen significantly from its 2023 highs. This increase in yield is particularly appealing to dividend-focused investors, especially given PepsiCo's status as a Dividend King, having raised its dividend for over five decades. The company recently announced a 5% increase in its dividend, reflecting management's confidence in future growth despite current market challenges.

Despite facing challenges such as lower organic sales growth compared to competitors like Coca-Cola, PepsiCo remains a well-managed company with a diversified product portfolio. The recent stock price decline has made the shares appear undervalued based on key financial metrics, suggesting a potential buying opportunity for long-term investors. The company's strategic acquisitions, including a Mexican-American food maker and a probiotic beverage company, aim to modernize its brand portfolio and enhance growth prospects.