In 2026, both Hershey Company (HSY) and PepsiCo (PEP) have significantly outperformed the S&P 500, capitalizing on their robust business foundations amidst the AI-fueled market. Hershey, North America’s largest chocolate manufacturer, has seen positive earnings revisions for the current and next fiscal year, leading to consistent quarterly revenue and earnings surprises. The company’s shares yield 2.7%, exceeding the S&P 500’s 1.1% yield.
PepsiCo, a major player in the snack and beverage sectors, has experienced a 15% year-over-year growth in earnings per share (EPS) thanks to operational efficiencies. Despite slightly lower earnings revisions compared to the previous year, the company’s stock remains stable. PepsiCo boasts a 3.6% annual dividend yield and has maintained increased payouts for over 50 consecutive years, earning its reputation as a Dividend King.
