These Dividend Monsters Continue to Outshine the Market: PEP, HSY

Amid the continued AI craze in 2026, many have overlooked simple businesses that aren’t overly flashy, such as well-established companies like Hershey HSY, and PepsiCo PEP, both of which have nicely outperformed relative to the S&P 500 in 2026, as shown below.

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Hershey Enjoys Bullish Revisions

The Hershey Company, a current Zacks Rank #2 (Buy), is the largest chocolate manufacturer in North America and a global leader in chocolate and non-chocolate confectionery. The company has seen its earnings outlook for its current and next fiscal year jump higher over recent months, a huge positive concerning sustaining its recent momentum.

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Hershey has also been on a nice earnings streak, exceeding earnings and revenue estimates in three consecutive quarters, underpinning the recent momentum nicely.

Shares are also highly attractive from an income-focused standpoint, with the company overall a long-time favorite of those seeking consistent paydays. Shares currently yield a solid 2.7% annually, which compares to a current yield of 1.1% from the S&P 500.

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PepsiCo Keeps Paying

PepsiCo is a long-established company engaged in the manufacturing, marketing, and distribution of grain-based snack foods, beverages, and other products.

While revisions for its current and next fiscal year stand a hair below where they were a year ago, the bounce back and stability of revisions that have followed since last June eases concenrs nicely. The stock also popped on its latest set of better-than-expected results, with improved operational efficiencies leading to 15% year-over-year EPS growth.

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Keep in mind that PepsiCo holds the elite Dividend King title, showing an unparalleled commitment to its shareholders through 50+ consecutive years of increased dividend payouts. Shares currently yield a rock-solid 3.6% annually, with its dividend reliability illustrated below.

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Bottom Line

You don’t have to focus on the hottest tech trend to see great returns. Less-flashy companies like PepsiCo PEP and The Hershey Company HSY have established themselves fully by doing the ‘simple’ things exceptionally well. Of course, they’re likely not to impress investors given their less-flashy nature, but sometimes boring is better.

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Hershey Company (The) (HSY): Free Stock Analysis Report

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This article originally published on Zacks Investment Research (zacks.com).

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