The 10-Year Treasury Bond Yields Nearly 5% Right Now. Here's Why I'd Still Choose PepsiCo for Passive Income.

finance.yahoo.com · 2026-09-13

The safety of government-guaranteed bonds is compelling to be sure. There are just a couple of nagging drawbacks that I can't live with. Maybe you can.

TickrTrends take: PepsiCo trades in an environment where risk-free Treasury yields have risen to levels that increase the cost of capital for dividend-paying stocks, yet TickrTrends currently identifies PEP as undervalued within the Consumer Defensive sector. Investors monitoring valuation metrics should track whether PEP's dividend yield and earnings power can sustain their relative attractiveness compared to higher Treasury returns, particularly as market conditions shift. The spread between PEP's yield and competing fixed-income alternatives will remain a key consideration for those evaluating the risk-reward profile of the position.

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