Yahoo Finance Analysis: Despite 10-year Treasury yields nearing 5%, analysts still favor PepsiCo as a source of passive income.
Analysis indicates that the current 10-year US Treasury yield has reached 4.8%, nearing its multi-year high of 5% in 2023. In comparison, PepsiCo's (NASDAQ: PEP) forward dividend yield is 4.3%. Despite the higher yield and government backing of US Treasuries, analysts believe PepsiCo's dividends have sustainable growth potential (having increased for 54 consecutive years) and the stock itself offers capital appreciation, whereas Treasury interest payments are fixed and may be eroded by inflation over the long term.
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