Two Top Consumer Stocks to Buy Now: Realty Income and PepsiCo

The article discusses two stocks to buy now: Realty Income and PepsiCo. Realty Income is a net lease REIT with a large yield, a strong business, and a history of reliably paying dividends. PepsiCo's business is underperforming, leading to a historically attractive yield. Both stocks are considered foundational passive income investments with long histories of dividend growth.

In the quest for reliable passive income, investors often turn to dividend stocks with proven track records. Two stocks that have garnered attention for their potential as foundational passive income investments are Realty Income Corporation (NYSE:O) and PepsiCo Inc. (NYSE:PEP).

Realty Income Corporation

Realty Income, known as "The Monthly Dividend Company," is an S&P 500 company and member of the S&P 500 Dividend Aristocrats index. It invests in people and places to deliver dependable monthly dividends that increase over time [1]. The company's monthly dividends are supported by the cash flow from over 15,450 real estate properties primarily owned under long-term net lease agreements with commercial clients.

During the first quarter of 2025, Bahl & Gaynor Inc. decreased its stake in Realty Income by 24.7%, now holding 2,409,181 shares after selling 791,831 shares [1]. Despite missing earnings expectations in the second quarter, Realty Income reported revenue of $1.34 billion, surpassing analyst predictions. The company recently increased its monthly dividend to $0.269 per share, marking a boost from the previous dividend of $0.26, with an annualized yield of 5.5% [1].

PepsiCo Inc.

PepsiCo, a global food and beverage company, has seen its business underperform recently, leading to a historically attractive yield. The company has a long history of dividend growth and is known for its stable and consistent dividend payouts. Despite recent challenges, PepsiCo remains a significant player in the industry, with a strong brand portfolio that includes iconic products like Pepsi, Mountain Dew, and Frito-Lay.

Conclusion

Both Realty Income and PepsiCo offer attractive dividend yields and a history of reliable dividend growth. While Realty Income has seen a decrease in its stake by a major institutional investor, its strong business fundamentals and consistent dividend increases make it an attractive option for passive income investors. PepsiCo, despite recent underperformance, remains a solid choice for those seeking a stable and long-term dividend income stream.

References

[1] https://www.marketbeat.com/instant-alerts/filing-realty-income-corporation-o-holdings-trimmed-by-bahl-gaynor-inc-2025-08-23/