PepsiCo and Hormel have both been knocked down hard, and the selloff has turned them into the kind of names long-term income investors keep watching. PepsiCo shares are down 25% from their five-year high, while Hormel is down more than 50%, even though both companies still pay some of the market’s richer dividends.
That is why the search for a Pepsico Hormel Long-term Investment is picking up now. PepsiCo’s yield is 4.1%, and Hormel’s is 5.1%, both well above the S&P 500’s roughly 1% yield. For investors who want income they can hold through a full cycle, that gap matters as much as the stock-price decline itself.
The case for both companies rests on durability. PepsiCo and Hormel each have histories that stretch back more than 100 years, and each has raised its dividend every year for more than 50 years, putting them in the Dividend Kings group. That record does not erase the pressure they face now, but it does explain why they still draw attention when their shares slide.
The pressure is real. Inflation is running high and squeezing margins, consumers are tightening budgets, and buying habits are shifting toward healthier fare. PepsiCo operates globally across beverages, snacks and packaged food, and it remains the number one player in salty snacks and number two in beverages. Even so, its organic sales rose only 1.3% in the third quarter of 2026, while Coca-Cola’s organic sales grew 7% in the same period.
Hormel’s path has been rougher. Its organic sales fell 2% in the third quarter, and its turnaround efforts have hit a patch of uneven progress even as the long-term story stays intact for patient investors. Its food business is heavily focused on protein, and it has a large food service operation, but those strengths have not yet produced a clean rebound in the top line.
What keeps Hormel in the conversation is not just the yield. The Hormel Foundation owns roughly 47% of the stock, uses dividends for its philanthropic efforts and wants a reliable, slowly growing payout over time. That ownership structure also helps keep Hormel a stand-alone business, which can support steadier decision-making than a company under pressure from short-term demands.
That leaves the market with a simple question: whether these discounts are a warning or an opportunity. For now, the numbers point to opportunity more than distress. The stocks are far below their five-year peaks, the yields remain historically high and the dividend records are still intact. What is missing is a fast catalyst, so the investment case depends on patience, not a near-term bounce.
