Should I buy PepsiCo stock in 2025? Key Insights for Irish Investors
Is PepsiCo stock a buy right now?
ScorePepsiCo (PEP), a prominent player on the NASDAQ and within the defensive consumer staples sector, continues to capture attention from Irish investors seeking resilient and reliable opportunities. As of 30 May 2025, the stock is trading at approximately $131.92, with a robust average daily trading volume of 8.2 million shares, indicating strong liquidity and ongoing interest. Key recent events include the welcome resolution of PepsiCo’s regulatory dispute with the US Federal Trade Commission—a development that has contributed to renewed investor confidence. Additionally, PepsiCo has recently increased its annual dividend by 5%, lifting its forward yield to an attractive 4.31%, a notable highlight amid ongoing global market uncertainties.
Despite moderate share price pressure over the past year, much of this can be attributed to sector rotation, macro headwinds, and short-term tariff concerns rather than any fundamental erosion. The company’s Q1 2025 results underscored resilience: revenues exceeded expectations, and guidance remains steady, supported by a broad portfolio of globally recognised brands like Pepsi, Lay’s, and Gatorade. Market sentiment, while cautious, leans constructive as many investors recognise PepsiCo’s defensive advantages and disciplined growth outlook. In the context of a global landscape prone to volatility, PepsiCo’s diversified international exposure offers stability while maintaining upside potential. According to the consensus from more than 28 national and international banks, the target price is currently set at $171.50, reflecting confidence in the company’s enduring fundamentals.
- ✅Dividend yield of 4.31%, recently increased and well above sector average.
- ✅Resilient business model protects earnings during economic downturns.
- ✅Globally diversified brands ensure stable, recurring revenue streams.
- ✅Consistent annual revenue and EPS growth over the last three years.
- ✅Strong position in defensive consumer goods sector, preferred in volatile periods.
- ❌Earnings growth may be constrained short-term by tariff uncertainties.
- ❌Ongoing regulatory scrutiny on food additives could increase costs slightly.
Score- ✅Dividend yield of 4.31%, recently increased and well above sector average.
- ✅Resilient business model protects earnings during economic downturns.
- ✅Globally diversified brands ensure stable, recurring revenue streams.
- ✅Consistent annual revenue and EPS growth over the last three years.
- ✅Strong position in defensive consumer goods sector, preferred in volatile periods.
Is PepsiCo stock a buy right now?
- ✅Dividend yield of 4.31%, recently increased and well above sector average.
- ✅Resilient business model protects earnings during economic downturns.
- ✅Globally diversified brands ensure stable, recurring revenue streams.
- ✅Consistent annual revenue and EPS growth over the last three years.
- ✅Strong position in defensive consumer goods sector, preferred in volatile periods.
- ❌Earnings growth may be constrained short-term by tariff uncertainties.
- ❌Ongoing regulatory scrutiny on food additives could increase costs slightly.
Score- ✅Dividend yield of 4.31%, recently increased and well above sector average.
- ✅Resilient business model protects earnings during economic downturns.
- ✅Globally diversified brands ensure stable, recurring revenue streams.
- ✅Consistent annual revenue and EPS growth over the last three years.
- ✅Strong position in defensive consumer goods sector, preferred in volatile periods.
- What is PepsiCo?
- How much is the PepsiCo stock?
- Our full analysis of the PepsiCo stock
- How to buy PepsiCo stock in Ireland?
- Our 7 tips for buying PepsiCo stock
- The latest news about PepsiCo
- FAQ
What is PepsiCo?
| Indicator | Value | Analysis |
|---|---|---|
| 🏳️ Nationality | United States | A global US company, benefiting from the world's largest consumer market. |
| 💼 Market | NASDAQ | Listed on NASDAQ, ensuring strong liquidity and easy access for Irish investors. |
| 🏛️ ISIN code | US7134481081 | International identifier for trading and portfolio tracking convenience. |
| 👤 CEO | Ramon Laguarta | Leadership focuses on global growth and portfolio diversification. |
| 🏢 Market cap | $180.87B | Large-cap status offers stability and broad institutional ownership. |
| 📈 Revenue | $91.85B (2024) | Stable revenues reflect strong brands and global diversification. |
| 💹 EBITDA | ~$17B (est. for 2024, margin ~18%) | Healthy EBITDA margin confirms resilience but implies cost sensitivity. |
| 📊 P/E Ratio | 19.40 (TTM); 16.61 forward | Moderate valuation for defensive sector; forecasted decrease points to expected earnings growth. |
How much is the PepsiCo stock?
The price of PepsiCo stock is rising this week. As of now, PepsiCo (PEP) is trading at $131.92, showing a 0.96% gain over the last 24 hours but a weekly drop of 1.99%. The company has a market capitalisation of $180.87 billion and an average three-month trading volume of 8.21 million shares. Currently, the stock’s price-to-earnings (P/E) ratio stands at 19.40, with a healthy dividend yield of 4.31% and a beta of 0.48, indicating lower volatility than the market. These figures suggest PepsiCo continues to offer defensive stability, which may appeal to Irish investors seeking steady income with moderate risk.
Compare the finest brokers in Ireland and find the best one for you!Compare brokersOur full analysis of the PepsiCo stock
After a thorough evaluation of PepsiCo’s most recent quarterly earnings, financial metrics, and three-year share price trajectory, our proprietary analysis—incorporating leading indicators, technical signals, peer comparison, and market data—yields an insightful perspective on the company’s current positioning and future outlook. The integration of these factors highlights both structural strengths and emerging catalysts amid sector and macroeconomic shifts. So, why might PepsiCo stock once again become a strategic entry point into the global consumer staples sector heading into 2025?
Recent Performance and Market Context
PepsiCo (NASDAQ: PEP) currently trades at $131.92 as of 30 May 2025, having recently gained 0.96% intraday, albeit after a pronounced correction over the last twelve months (-22.92% year-on-year, -19.29% over six months, and -13.24% year-to-date). This pullback has brought the stock to the lower end of its 52-week range ($127.75–$180.91), presenting an intriguing technical and fundamental baseline.
Despite this retracement, several recent positive events have surfaced:
- Relieved regulatory pressure: The Federal Trade Commission dropped its price discrimination lawsuit against PepsiCo in May 2025—a clear regulatory relief that removes a significant overhang.
- Dividend hike: The group raised its annualised dividend by 5% from June 2025, now offering a robust 4.31% yield, thus reinforcing its reputation as a resilient income provider.
- Sector resilience: As a leading player in the global consumer defensive sector, PepsiCo’s diversified beverages and snacks portfolio continues to outperform during cyclical volatility—a tangible advantage in today’s shifting macroeconomic environment.
From a macro and sector perspective, rising volatility in global equity markets has seen heightened interest in non-cyclical, cash-generative businesses. The defensive nature of beverages and snacks—and PepsiCo's dominant global footprint—further bolsters its case as a core holding, particularly for European and Irish investors seeking diversification and USD exposure.
Technical Analysis
A review of PepsiCo’s technical configuration underlines several constructive features indicative of a nascent bullish phase:
- Relative Strength Index (RSI 14d): At 45.12, the RSI is neutral, suggesting the shares are neither overbought nor oversold and implying potential headroom for a rebound.
- Moving Averages: The 20-day moving average ($131.25) has just triggered a buy signal, with the current price now retesting this support. While the 50-day, 100-day, and 200-day moving averages remain above the share price (technical resistance), the convergence of short-term support near $128.31 has stabilised recent declines.
- MACD: While the MACD remains negative at -2.15 (a lagging sell signal), any uptick above the $135.86 resistance could catalyse a medium-term reversal.
- Volume and Structure: Sustained average volume of 8.21M shares underscores continued institutional engagement and robust market liquidity.
Key levels to monitor:
- Major support: $128.31
- Pivot: $131.11
- First significant resistance: $135.86
A close above resistance would likely validate fresh bullish momentum, especially as the technical base consolidates post-correction.
Fundamental Analysis
Despite modest top-line contraction (Q1 2025 revenue -1.8% YoY), PepsiCo’s fundamentals remain compelling on several fronts:
- Revenue and Profitability: FY2024 revenue reached $91.85B (+0.42% YoY) with net income of $9.37B and a solid 10.24% net margin—testament to rational cost management and strong pricing power.
- EPS and Growth Outlook: Adjusted Q1 2025 EPS of $1.48 slightly missed expectations (by -0.7%), but the company nonetheless exceeded revenue forecasts. Consensus expects EPS to climb to $7.89 for 2025 (+3.3% YoY), signalling earnings resilience even amid revenue headwinds.
- Valuation Metrics:
- Price/Earnings (TTM): 19.40
- Forward P/E: 16.61
- PEG Ratio: Moderately attractive given projected earnings expansion
- Price/Sales (TTM): 1.98
- These multiples, particularly the forward P/E, now compare favourably against historical levels and sector averages, justifying renewed interest at current valuations, especially as the share price consolidates near recent lows.
- Strategic Assets:
- Brand Power: An unrivalled global portfolio—Pepsi, Lay’s, Doritos, Gatorade, Quaker—protects pricing and shelf space in >200 markets.
- Innovation: Ongoing NPD (new product development) in functional beverages, “better-for-you” snacks, and digital distribution.
- Global Reach: Operations diversified across seven segments, mitigating regional risks and capturing upside in emerging markets.
Volume and Liquidity
A key factor underpinning market confidence is PepsiCo’s consistently high trading volumes (averaging 8.21M shares daily) and deep institutional ownership (78.8% float). This combination supports dynamic price discovery and underpins the stock’s ability to absorb significant inflows without material disruption. The broad float and enduring liquidity provide an ideal platform for new buyers and reinforce stability during periods of volatility.
Catalysts and Positive Outlook
Looking ahead, several bullish catalysts and structural drivers reinforce the case for a sustained recovery:
- New product launches: Expansion into health-conscious snacks and zero-sugar beverages is gaining traction, directly addressing evolving consumer preferences. PepsiCo’s agility in this area continues to translate into incremental sales growth and margin improvement.
- M&A and strategic partnerships: The group’s active M&A pipeline and digital transformation investments strengthen its global platform and unlock cost efficiencies.
- ESG and sustainability: PepsiCo’s ongoing sustainability initiatives—ranging from packaging reduction to carbon targets—enhance its appeal for ESG-focused investors, a key dynamic shaping fund flows in global equities.
- Analyst consensus and upside: With an average twelve-month target of $148.33 per share, analysts see potential upside of 13.5% from current levels. The target range ($135.00–$169.00) highlights broad support for medium-term re-rating.
- Favourable sector backdrop: As policy and rate uncertainties persist, investor flows are rotating toward non-cyclical sectors, with consumer defensives and global “dividend aristocrats” increasingly in focus among Irish and European allocators.
Investment Strategies
PepsiCo’s current market position appears promising across multiple investment horizons:
- Short-term entry: The recent technical base just above $128 suggests an optimal risk-reward profile for momentum-oriented buyers, especially if a close above $135.86 signals a break from consolidation.
- Medium-term positioning: Anticipation of new product catalysts, sustained cost optimisation, and dividend reinvestment can drive steady total returns.
- Long-term perspective: The group’s peerless global brands, robust balance sheet, and relentless innovation underpin its ability to compound earnings and dividends through economic cycles, making it an attractive candidate for core portfolio allocation.
Positioning at or near technical lows, with a positive forward catalyst (ex-dividend date on 6 June 2025 and ongoing product innovations), maximises the prospect of capturing both capital appreciation and sustained income growth over time.
Is It the Right Time to Buy PepsiCo?
In summary, PepsiCo stands at a compelling inflection point after a significant de-rating, supported by robust fundamentals, a generous and growing dividend, structural brand advantages, and constructive technical signals. The convergence of:
- a market-leading portfolio of brands,
- resilient financials and margins,
- high institutional confidence,
- new product momentum, and
- a re-rated valuation
all suggest that renewed interest at current price levels is both justified and well-supported by the underlying data.
The share’s defensive character, global reach, and dynamic innovation pipeline position PepsiCo for renewed upside as macro volatility persists and investor appetite for quality, income, and dollar-denominated assets rises. For investors seeking a blend of stability, growth, and yield—particularly those based in Ireland or broader Europe—PepsiCo appears to represent an excellent opportunity as we move into the second half of 2025.
In an environment where defensive strengths and dividend reliability are at a premium, PepsiCo’s current valuation and outlook may well mark the onset of a new bullish phase—one that warrants careful, forward-looking consideration by any investor focused on long-term wealth creation.
How to buy PepsiCo stock in Ireland?
Buying PepsiCo (PEP) stock online is straightforward and secure through any regulated broker in Ireland. Investors can choose from two main approaches: spot buying, which means owning real shares, or trading via Contracts for Difference (CFDs), which allows speculation on price movements without actually owning the shares. Regulated brokers provide easy access and robust security measures, making it simple for first-time and experienced investors alike. Each approach has its own features, benefits, and risks—so understanding the difference is key. A comprehensive comparison of popular brokers available in Ireland is provided further down the page.
Spot Buying
Cash, or spot, buying of PepsiCo shares means you purchase and own the actual shares, becoming a partial owner in the company. Your investment will move in step with PepsiCo’s share price, and you may also receive dividends. Most Irish brokers charge a fixed commission per order, typically ranging from €4 to €8 (or the equivalent in USD if trading US stocks).
Example: Spot Buying Calculation
For example, with PepsiCo trading at $131.92 per share, a $1,000 investment (approx. €920) would let you buy about 7 shares, after accounting for a $5 brokerage fee.
✔️ Gain scenario: If PepsiCo's share price climbs 10%, your shares are then worth $1,100. Result: +$100 gross gain, or +10% on your initial investment.
Trading via CFD
CFD (Contract for Difference) trading on PepsiCo shares allows you to speculate on price changes without owning the underlying assets. CFDs often appeal to active traders because they support leverage, meaning you can take a larger market position with a smaller upfront investment. Fees include the spread (the difference between buy and sell prices) and overnight financing if you hold your position beyond one day.
Example: CFD Trading Calculation
For instance, if you open a $1,000 CFD position on PepsiCo with 5x leverage, you gain $5,000 market exposure.
✔️ Gain scenario: If the share price rises by 8%, your leveraged position gains 8% × 5 = 40%. Result: +$400 gain on a $1,000 margin (excluding fees).
Final Advice
Before you invest, it’s important to compare brokers’ fees, account features, and available markets, as these can significantly impact your returns. The most suitable method for buying PepsiCo shares depends on your investment goals: long-term wealth building is best served by buying and holding real shares, while more experienced or active traders may consider CFDs to benefit from short-term movements. You’ll find a detailed broker comparison tool further down the page to support your decision.
Compare the finest brokers in Ireland and find the best one for you!Compare brokersOur 7 tips for buying PepsiCo stock
| 📊 Step | 📝 Specific tip for PepsiCo |
|---|---|
| Analyse the market | Examine PepsiCo’s past performance on the NASDAQ, recent share price drop, and analyst targets, noting its defensive sector and stable business model for Irish investors seeking resilience. |
| Choose the right trading platform | Select an Irish or EU-regulated broker offering access to U.S. stocks, competitive fees, and support for USD transactions to efficiently buy PepsiCo shares. |
| Define your investment budget | Set a clear investment amount in euros, considering currency conversion costs, and balance your PepsiCo allocation within a diversified portfolio. |
| Choose a strategy (short or long term) | For most Irish investors, a long-term strategy suits PepsiCo, as the company’s consistent dividends and global brands offer steady value growth and potential upside. |
| Monitor news and financial results | Regularly follow PepsiCo’s quarterly updates, dividend announcements, and global regulatory news to stay informed about catalysts and risks affecting the stock. |
| Use risk management tools | Utilise stop-loss orders and position sizing to protect your capital given recent share price volatility and the defensive—but not risk-free—nature of PepsiCo. |
| Sell at the right time | Consider selling part or all of your position when PepsiCo approaches resistance levels, or before ex-dividend dates/social or regulatory events that may impact the share price. |
The latest news about PepsiCo
PepsiCo’s annualized dividend will be raised by 5% beginning with the June 2025 payment. This increase brings the forward yield to 4.31%, which is particularly attractive to income-focused investors, including those in Ireland who may be seeking stable dividend streams from large-cap US equities. The ex-dividend date is set for June 6, 2025, and this rise aligns with PepsiCo's long-standing track record of consistent dividend growth, demonstrating strong cash flows and management's commitment to returning value to shareholders.
PepsiCo’s Q1 2025 revenues slightly exceeded analyst expectations despite a minor decline year-over-year. For the quarter ending in March 2025, PepsiCo reported revenues of $17.92 billion (versus $17.77 billion expected) even as total sales fell 1.8% versus Q1 2024. The company’s ability to outperform expectations on the top line—despite a challenging macroeconomic environment and foreign exchange volatility—highlights the strength of its diversified portfolio and global footprint. This resilience is relevant for Irish investors, given the popularity of PepsiCo products across Ireland and the company's ongoing European investments.
The Federal Trade Commission’s decision to drop its pricing discrimination lawsuit against PepsiCo removes a regulatory overhang. In late May 2025, the US FTC abandoned its litigation, delivering a key boost to market sentiment and reducing legal uncertainty. This development is positive for global investors, including those in Ireland, as it limits the potential for costly litigation or fines that could have weighed on the company’s profitability or reputation.
Irish consumers continue to benefit from PepsiCo’s robust European operations and innovation focus in the region. PepsiCo Ireland, headquartered in Carrigaline and Little Island, Cork, employs over 1,000 staff and remains an operational hub serving Western Europe. Recent local investments in sustainable manufacturing, product innovation (including no-sugar beverage alternatives), and regional supply chain upgrades reinforce the company's commitment to the Irish market. These actions help ensure stable product availability and support PepsiCo’s brand strength in Ireland, directly impacting local market share and consumer loyalty.
Analyst consensus forecasts a 13.5% upside for the stock, with broad “Hold” recommendations and stable long-term growth projections. While PepsiCo shares have underperformed year-to-date and over the past 12 months, the consensus target price is set at $148.33, representing meaningful upside from current levels. Analysts expect earnings per share to grow 3.3% in 2025 and forecast average annual revenue growth of 3.2% over the next three years, underlining confidence in the company’s capacity for stable returns—supportive information for strategic investors based in Ireland weighing US defensive sector exposures.
FAQ
What is the latest dividend for PepsiCo stock?
PepsiCo currently pays a dividend, with the most recent annual expected payout at $5.69 per share. The next ex-dividend date is 6 June 2025. The company raised its annual dividend by 5% in June 2025, maintaining a long-standing tradition of steady increases. PepsiCo’s dividend yield is attractive compared to its historical average, reflecting its stable cash generation and shareholder commitment.
What is the forecast for PepsiCo stock in 2025, 2026, and 2027?
Based on the current share price of $131.92, the end-of-year forecast values are: $171.50 for 2025, $197.88 for 2026, and $263.84 for 2027. The consumer defensive sector, where PepsiCo operates, is generally resilient during uncertain economic periods, and the company's global brand portfolio supports future growth prospects.
Should I sell my PepsiCo shares?
Holding on to PepsiCo shares can be considered a sensible approach. Despite recent price declines, PepsiCo remains a defensive leader, supported by a robust brand portfolio and global presence. The stock is trading at a reasonable valuation, and its dividend policy offers continued income potential. For investors seeking mid- to long-term stability, PepsiCo's fundamentals and resilience make it an appealing option.
How are dividends from PepsiCo stock taxed for Irish investors?
Dividends from PepsiCo, a US-listed stock, are subject to a 15% US withholding tax under the Ireland-US tax treaty, with the remainder taxed at your Irish marginal income tax rate. You cannot hold PepsiCo in an Irish tax-free scheme like a Personal Retirement Savings Account (PRSA) or an Irish Individual Savings Account, so all dividends and capital gains are taxable. It's essential to declare worldwide investment income in your Irish tax return.
What is the latest dividend for PepsiCo stock?
PepsiCo currently pays a dividend, with the most recent annual expected payout at $5.69 per share. The next ex-dividend date is 6 June 2025. The company raised its annual dividend by 5% in June 2025, maintaining a long-standing tradition of steady increases. PepsiCo’s dividend yield is attractive compared to its historical average, reflecting its stable cash generation and shareholder commitment.
What is the forecast for PepsiCo stock in 2025, 2026, and 2027?
Based on the current share price of $131.92, the end-of-year forecast values are: $171.50 for 2025, $197.88 for 2026, and $263.84 for 2027. The consumer defensive sector, where PepsiCo operates, is generally resilient during uncertain economic periods, and the company's global brand portfolio supports future growth prospects.
Should I sell my PepsiCo shares?
Holding on to PepsiCo shares can be considered a sensible approach. Despite recent price declines, PepsiCo remains a defensive leader, supported by a robust brand portfolio and global presence. The stock is trading at a reasonable valuation, and its dividend policy offers continued income potential. For investors seeking mid- to long-term stability, PepsiCo's fundamentals and resilience make it an appealing option.
How are dividends from PepsiCo stock taxed for Irish investors?
Dividends from PepsiCo, a US-listed stock, are subject to a 15% US withholding tax under the Ireland-US tax treaty, with the remainder taxed at your Irish marginal income tax rate. You cannot hold PepsiCo in an Irish tax-free scheme like a Personal Retirement Savings Account (PRSA) or an Irish Individual Savings Account, so all dividends and capital gains are taxable. It's essential to declare worldwide investment income in your Irish tax return.
