These Reliable Dividend Giants Are Still on Sale - 8/9

Company: PepsiCo (SYM: PEP)
Dividend Yield: 3.93%

PepsiCo is a household name, and for good reason. The company has built an empire of iconic brands including Pepsi, Gatorade, Lay’s, Tropicana, and Quaker. Even during challenging macro environments, PepsiCo has demonstrated its resilience and ability to maintain strong cash flow.

Recently, the stock tested a 52-week low of just under $128. Now back above $144, it’s showing signs of a solid rebound. From here, there’s potential for a return to the $157 level—a mark it last hit in early 2024.

While investors wait for that bounce, they can collect a solid dividend. PepsiCo recently declared a quarterly payout of $1.4225 per share, payable on September 30 to shareholders of record as of September 5. That equates to a 3.93% yield—well above the S&P 500 average.

Earnings are also back on the upswing. In its second-quarter report, PepsiCo posted EPS of $2.12, beating estimates by nine cents. Revenue came in at $22.73 billion, up 1% year over year and ahead of expectations by $430 million.

CEO Ramon Laguarta commented, “Our international business momentum continued, while our North America businesses improved their execution and competitiveness.” That bodes well for continued top-line and bottom-line strength heading into the second half of the year.

Company: Hormel Foods (SYM: HRL)
Dividend Yield: 4.06%

Hormel Foods has been under pressure lately, falling from around $31.50 to lows near $27.77. But this drop may be offering a hidden gift to value and income investors.

While waiting for a recovery, investors are compensated with a 4.06% dividend yield, well above the market average. Hormel paid its most recent quarterly dividend of $0.29 per share on August 15, and it has one of the most impressive dividend streaks in the market: 55 consecutive years of payments without interruption.

Goldman Sachs recently initiated a Buy rating on Hormel with a $35 price target—representing nearly 30% upside from current levels. The firm cited Hormel’s “strong packaged food portfolio with diverse brands, price points, and occasions across key protein categories.”

Hormel also benefits from a relatively conservative balance sheet and strong operating cash flow, making its dividend secure and sustainable. In uncertain markets, stocks like HRL can offer a stabilizing force in portfolios—and a reliable stream of income.

Company: United Parcel Service (SYM: UPS)
Dividend Yield: 7.64%

UPS has fallen out of favor, but that’s exactly what makes it compelling right now. Currently trading near $85.82, the stock hasn’t been this cheap since mid-2020. A mix of earnings concerns, economic uncertainty, and management pulling its 2025 guidance earlier this year has put pressure on the share price.

But most of the bad news appears to already be priced in—and patient investors could be rewarded.

In the meantime, UPS is offering an extremely attractive dividend yield of 7.64%. That includes a $1.54 per share quarterly dividend, scheduled for payout on September 4 to shareholders of record as of August 18.

Despite recent downgrades, including one from Bank of America, UPS remains a global logistics powerhouse. The company is a critical link in global commerce and could see a rebound as shipping volumes stabilize and tariff concerns ease. For long-term investors, the yield alone may be reason enough to give this stock a serious look.

Bonus Chart of the Day: D-Wave Quantum (SYM: QBTS)

For those looking beyond traditional Blue Chips and into emerging tech, D-Wave Quantum (SYM: QBTS) is a stock to watch.

Quantum computing is one of the most transformative technologies on the horizon. Bank of America recently went so far as to call it “humanity’s biggest breakthrough since the discovery of fire.” While that’s certainly dramatic, it reflects growing institutional enthusiasm around the space.

QBTS is gaining attention. B. Riley just raised its price target to $22, reiterating a Buy rating. Canaccord Genuity initiated coverage with a Buy rating and a $20 price target, and further upgrades could be on the way as quantum technology inches closer to commercialization.

Quantum computing is poised to revolutionize areas like:

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  Drug discovery through rapid molecular simulation

  
  


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  Financial modeling and algorithmic trading

  
  


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  Artificial intelligence and machine learning

  
  


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  Cybersecurity

  
  


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  Battery innovation and green energy optimization

  
  

While QBTS is speculative, it’s also uniquely positioned in a space that could generate multi-billion-dollar markets over the next decade. For investors willing to take on risk in exchange for upside, this could be a stock worth watching.