PepsiCo Hormel long-term investment cases look stronger after PepsiCo fell 25% from its five-year high and Hormel dropped over 50%. Both now trade at historically high yields, which changes the entry point for income investors focused on dividends rather than short-term price moves.
PepsiCo 4.1% yield
4.1% is PepsiCo’s historically high yield, and it sits far above the 1% yield on the S&P 500 index. PepsiCo operates globally in beverages, snacks, and packaged foods, and it remains the number one player in salty snacks and the number two player in beverages, but its shares still sit well below their peak.
1.3% was PepsiCo’s organic sales increase in the third quarter of 2026, which lagged Coca-Cola’s 7% gain in the same period. That gap shows why the stock has struggled to regain its former level even as the business keeps growing, just more slowly than a direct rival.
Hormel 5.1% yield
5.1% is Hormel’s historically high yield, reflecting a stock that has fallen over 50% from its five-year high. Hormel has also been under pressure from inflation, tighter consumer budgets, and a shift toward healthier fare, all of which have squeezed margins and slowed the sales path that investors wanted to see.
2% was Hormel’s organic sales decline in the third quarter after a year or so of growth. That pullback matters because it interrupted the turnaround investors were hoping would stabilize the business and support a faster recovery in the share price.
Dividend Kings and 47%
50+ years of annual dividend increases make both PepsiCo and Hormel Dividend Kings, and that record is the reason income investors keep these names on their lists. More than 100 years of operating history also gives the two companies staying power that newer businesses do not have, even when their stock charts look weak.
47% is the Hormel Foundation’s ownership stake, and the dividends it collects help fund its philanthropic efforts while supporting a structure designed to keep Hormel a stand-alone business. For investors, that ownership base adds a layer of long-term continuity, but the immediate question is simpler: whether sales growth can improve enough to narrow the gap between current prices and the companies’ older highs.
