Oil Prices Surge Amid U.S. Tensions; Bank Earnings Reports Loom
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 13 2026
0mins
Source: CNBC
- Oil Price Surge: Oil prices jumped 7% today, surpassing $100, following President Trump's announcement of a blockade on the Strait of Hormuz due to failed peace talks with Iran, which could lead to instability in global energy markets.
- Goldman Sachs Earnings Beat: Goldman Sachs reported better-than-expected earnings for Q1, driven by record equity trading results, although disappointing fixed-income trading led to a more than 2% drop in its stock price, highlighting mixed performance in its trading divisions.
- AI Security Risk Discussions: The release of Anthropic's new AI model has raised cybersecurity concerns, prompting Federal Reserve Chair and Treasury Secretary to meet with major bank CEOs to discuss potential risks, indicating heightened government scrutiny over AI technology safety.
- Trump vs. Pope Controversy: Trump criticized Pope Leo XIV on social media for being weak on the Iran war, while the Pope responded by emphasizing his commitment to promoting peace and dialogue, reflecting the ongoing tension between political and religious spheres that may influence public opinion.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy PEP?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on PEP
Wall Street analysts forecast PEP stock price to rise
12 Analyst Rating
6 Buy
6 Hold
0 Sell
Moderate Buy
Current: 154.620
Low
144.00
Averages
161.90
High
172.00
Current: 154.620
Low
144.00
Averages
161.90
High
172.00
About PEP
PepsiCo, Inc. is a global beverage and convenient food company. The Company’s segments include PepsiCo Foods North America (PFNA), PepsiCo Beverages North America (PBNA), International Beverages Franchise (IB Franchise), Europe, Middle East and Africa (EMEA), Latin America Foods (LatAm Foods), and Asia Pacific Foods. PFNA segment includes all of its convenient food businesses in the United States and Canada. PBNA segment includes all of its beverage businesses in the United States and Canada. IB Franchise segment includes its international franchise beverage businesses, as well as its SodaStream business. EMEA segment includes its convenient food businesses and beverage businesses with Company-owned bottlers in Europe, the Middle East and Africa. LatAm Foods segment includes all of its convenient food businesses in Latin America. Asia Pacific Foods segment consists of its convenient food businesses in Asia Pacific, including China, Australia and New Zealand, as well as India.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Three Dividend Stocks Worth Considering for Your Portfolio
- Strong Performance of Vici Properties: Vici Properties reported a 3.5% revenue increase to $1 billion in Q1 2026, supported by a 100% occupancy rate, demonstrating stability in the casino REIT sector and likely to continue attracting investor interest.
- High Yield from PepsiCo: PepsiCo achieved an 8.5% net revenue growth and a 27% increase in earnings per share in Q1 2026, with a payout ratio of 89.3%, yet its 4.1% dividend yield surpasses Coca-Cola, showcasing its competitive edge in the beverage market.
- Robust Growth of T. Rowe Price: T. Rowe Price's revenue grew by 5.3% to $1.85 billion in Q1 2026, maintaining a net profit margin of 29.53%, and with a 4.9% dividend yield and a low payout ratio of 54.77%, it stands as an ideal long-term investment choice.
- Investment Portfolio Potential: Combining Vici Properties, PepsiCo, and T. Rowe Price creates a solid dividend investment portfolio that offers investors stable cash flow and long-term growth potential.
See More
High-Yield Stock Recommendations: Vici, Pepsi, T. Rowe
- Vici Properties Performance: Vici Properties, owning 61 casinos, reported a 3.5% revenue increase to $1 billion in Q1 2026, with a 5.7% growth in adjusted funds from operations (AFFO), and pays out 90% of its income as dividends at a yield of 6.19%, showcasing its strong position in the high-yield REIT sector.
- Pepsi's Financial Strength: Pepsi's net revenue grew by 8.5% year-over-year in Q1 2026, with earnings per share (EPS) soaring 27% and net profit margin rising from 8.83% to 9.21%, despite a higher debt load, its 4.1% dividend yield remains attractive compared to Coca-Cola, highlighting its appeal among blue-chip stocks.
- T. Rowe Price's Steady Growth: T. Rowe Price has been providing financial services since 1937, with Q1 2026 revenue increasing 5.3% to $1.85 billion and a dividend yield of 4.9%, while its low payout ratio of 54.77% positions it well to achieve Dividend King status by 2037, reflecting solid financial health.
- Portfolio Construction Advice: By combining Vici Properties, Pepsi, and T. Rowe Price, investors can create a robust high-yield stock portfolio; although Vici Properties was not included in Motley Fool's top ten recommended stocks, its long-term growth potential remains noteworthy.
See More
Dividend Growth Potential in Consumer Goods Companies
- Home Depot's Resilience: Despite facing high interest rates and a weak housing market, Home Depot achieved a 0.3% increase in same-store sales in 2025 and paid its 156th consecutive quarterly dividend in March, totaling $9.32 per share annually, with a forward yield of 2.9%, demonstrating strong profitability and dividend-paying capacity.
- PepsiCo's Sustained Growth: PepsiCo reported a 2.6% organic revenue growth in Q1, with core earnings per share up 5%, and increased its dividend for the 54th consecutive year to an annualized $5.69, yielding 3.7%; although its payout ratio is high, future dividend growth potential remains promising as earnings increase.
- Starbucks' Transformation Progress: Under the leadership of former Chipotle CEO Brian Niccol, Starbucks is undergoing a turnaround, with Q1 adjusted earnings per share surging 22% year-over-year and global comparable store sales rising 6%; despite a payout ratio of 187%, future earnings growth is expected to support dividend sustainability.
- Market Opportunities and Investments: Home Depot's acquisitions, including SRS Distribution, expanded its market opportunity by $100 billion, while PepsiCo and Starbucks are actively optimizing operations and leveraging technologies like AI to enhance profitability, laying the groundwork for future dividend growth and share price appreciation.
See More
Dividend Performance of Home Depot, PepsiCo, and Starbucks
- Home Depot's Dividend Stability: Home Depot has paid dividends for 39 consecutive years, currently offering a 2.9% yield, and despite a challenging housing market, its comparable sales increased by 0.3% in 2025, demonstrating business resilience.
- PepsiCo's Growth Potential: PepsiCo has increased its dividend for 54 consecutive years, with an annualized dividend of $5.69 and a yield of 3.7%, while organic revenue grew 2.6% year-over-year in Q1, showcasing its adaptability in a high-inflation environment.
- Starbucks' Recovery Progress: Under former CEO Niccol, Starbucks is undergoing a turnaround, recently paying its 64th consecutive dividend with a yield of 2.4%, and although its payout ratio is high at 187%, future earnings are expected to support dividend growth.
- Investor Opportunities: Currently, Home Depot, PepsiCo, and Starbucks all offer above-average dividend yields, attracting income-focused investors, particularly as strong performance in the consumer goods sector lays the groundwork for future dividend increases.
See More
Top Three High-Yield Stocks to Buy
- Home Depot's Resilience: Despite facing high interest rates and a weak housing market, Home Depot achieved a 0.3% increase in comparable sales in 2025 and paid its 156th consecutive quarterly dividend in March, totaling $9.32 per share annually, with a forward yield of 2.9%, significantly above the S&P 500 average.
- PepsiCo's Steady Growth: PepsiCo reported a 2.6% organic revenue growth in Q1, with core earnings per share up 5% on a constant-currency basis, and increased its dividend for the 54th consecutive year, currently at $5.69 annually, yielding 3.7%, indicating potential for future dividend sustainability despite a high payout ratio.
- Starbucks' Turnaround Strategy: Under the leadership of former Chipotle CEO Brian Niccol, Starbucks is undergoing a strategic transformation, with Q1 adjusted earnings per share surging 22% year-over-year and global comparable store sales increasing by 6%, despite a high payout ratio of 187%, future earnings growth is expected to support dividend increases.
- Attractive Investment Opportunities: All three companies demonstrate strong market positions and profitability, with Home Depot's market opportunity estimated at $700 billion, PepsiCo generating $95 billion in annual revenue from its brand portfolio, and Starbucks' recovery strategy potentially positioning it as an undervalued dividend stock, appealing to income-focused investors.
See More
Greg Abel's First Shareholder Meeting as CEO Receives Mixed Reviews
- Attendance at Shareholder Meeting: Greg Abel's first annual meeting as CEO saw attendance at just over half capacity, indicating a significant drop in draw compared to the Buffett and Munger era, although it still surpassed typical corporate annual meetings.
- Capital Allocation Concerns: Abel's failure to provide clear guidance on the future of Berkshire's equity portfolio and substantial cash reserves has heightened investor concerns regarding the company's capital allocation strategy, potentially impacting market confidence in Berkshire.
- Lackluster Buyback Performance: Despite announcing a resumption of stock buybacks, Berkshire repurchased only $234 million in shares during Q1, falling short of market expectations and possibly undermining investor trust in the company's buyback strategy.
- New CFO Compensation: The new CFO, Charles Chang, will receive an annual salary of $8 million, a significant increase compared to the previous CFO Marc Hamburg's total compensation of $4.3 million, raising potential shareholder concerns about the reasonableness of executive pay.
See More
Three Dividend Stocks Worth Considering for Your Portfolio
- Strong Performance of Vici Properties: Vici Properties reported a 3.5% revenue increase to $1 billion in Q1 2026, supported by a 100% occupancy rate, demonstrating stability in the casino REIT sector and likely to continue attracting investor interest.
- High Yield from PepsiCo: PepsiCo achieved an 8.5% net revenue growth and a 27% increase in earnings per share in Q1 2026, with a payout ratio of 89.3%, yet its 4.1% dividend yield surpasses Coca-Cola, showcasing its competitive edge in the beverage market.
- Robust Growth of T. Rowe Price: T. Rowe Price's revenue grew by 5.3% to $1.85 billion in Q1 2026, maintaining a net profit margin of 29.53%, and with a 4.9% dividend yield and a low payout ratio of 54.77%, it stands as an ideal long-term investment choice.
- Investment Portfolio Potential: Combining Vici Properties, PepsiCo, and T. Rowe Price creates a solid dividend investment portfolio that offers investors stable cash flow and long-term growth potential.
See More
High-Yield Stock Recommendations: Vici, Pepsi, T. Rowe
- Vici Properties Performance: Vici Properties, owning 61 casinos, reported a 3.5% revenue increase to $1 billion in Q1 2026, with a 5.7% growth in adjusted funds from operations (AFFO), and pays out 90% of its income as dividends at a yield of 6.19%, showcasing its strong position in the high-yield REIT sector.
- Pepsi's Financial Strength: Pepsi's net revenue grew by 8.5% year-over-year in Q1 2026, with earnings per share (EPS) soaring 27% and net profit margin rising from 8.83% to 9.21%, despite a higher debt load, its 4.1% dividend yield remains attractive compared to Coca-Cola, highlighting its appeal among blue-chip stocks.
- T. Rowe Price's Steady Growth: T. Rowe Price has been providing financial services since 1937, with Q1 2026 revenue increasing 5.3% to $1.85 billion and a dividend yield of 4.9%, while its low payout ratio of 54.77% positions it well to achieve Dividend King status by 2037, reflecting solid financial health.
- Portfolio Construction Advice: By combining Vici Properties, Pepsi, and T. Rowe Price, investors can create a robust high-yield stock portfolio; although Vici Properties was not included in Motley Fool's top ten recommended stocks, its long-term growth potential remains noteworthy.
See More
Dividend Growth Potential in Consumer Goods Companies
- Home Depot's Resilience: Despite facing high interest rates and a weak housing market, Home Depot achieved a 0.3% increase in same-store sales in 2025 and paid its 156th consecutive quarterly dividend in March, totaling $9.32 per share annually, with a forward yield of 2.9%, demonstrating strong profitability and dividend-paying capacity.
- PepsiCo's Sustained Growth: PepsiCo reported a 2.6% organic revenue growth in Q1, with core earnings per share up 5%, and increased its dividend for the 54th consecutive year to an annualized $5.69, yielding 3.7%; although its payout ratio is high, future dividend growth potential remains promising as earnings increase.
- Starbucks' Transformation Progress: Under the leadership of former Chipotle CEO Brian Niccol, Starbucks is undergoing a turnaround, with Q1 adjusted earnings per share surging 22% year-over-year and global comparable store sales rising 6%; despite a payout ratio of 187%, future earnings growth is expected to support dividend sustainability.
- Market Opportunities and Investments: Home Depot's acquisitions, including SRS Distribution, expanded its market opportunity by $100 billion, while PepsiCo and Starbucks are actively optimizing operations and leveraging technologies like AI to enhance profitability, laying the groundwork for future dividend growth and share price appreciation.
See More
Dividend Performance of Home Depot, PepsiCo, and Starbucks
- Home Depot's Dividend Stability: Home Depot has paid dividends for 39 consecutive years, currently offering a 2.9% yield, and despite a challenging housing market, its comparable sales increased by 0.3% in 2025, demonstrating business resilience.
- PepsiCo's Growth Potential: PepsiCo has increased its dividend for 54 consecutive years, with an annualized dividend of $5.69 and a yield of 3.7%, while organic revenue grew 2.6% year-over-year in Q1, showcasing its adaptability in a high-inflation environment.
- Starbucks' Recovery Progress: Under former CEO Niccol, Starbucks is undergoing a turnaround, recently paying its 64th consecutive dividend with a yield of 2.4%, and although its payout ratio is high at 187%, future earnings are expected to support dividend growth.
- Investor Opportunities: Currently, Home Depot, PepsiCo, and Starbucks all offer above-average dividend yields, attracting income-focused investors, particularly as strong performance in the consumer goods sector lays the groundwork for future dividend increases.
See More
Top Three High-Yield Stocks to Buy
- Home Depot's Resilience: Despite facing high interest rates and a weak housing market, Home Depot achieved a 0.3% increase in comparable sales in 2025 and paid its 156th consecutive quarterly dividend in March, totaling $9.32 per share annually, with a forward yield of 2.9%, significantly above the S&P 500 average.
- PepsiCo's Steady Growth: PepsiCo reported a 2.6% organic revenue growth in Q1, with core earnings per share up 5% on a constant-currency basis, and increased its dividend for the 54th consecutive year, currently at $5.69 annually, yielding 3.7%, indicating potential for future dividend sustainability despite a high payout ratio.
- Starbucks' Turnaround Strategy: Under the leadership of former Chipotle CEO Brian Niccol, Starbucks is undergoing a strategic transformation, with Q1 adjusted earnings per share surging 22% year-over-year and global comparable store sales increasing by 6%, despite a high payout ratio of 187%, future earnings growth is expected to support dividend increases.
- Attractive Investment Opportunities: All three companies demonstrate strong market positions and profitability, with Home Depot's market opportunity estimated at $700 billion, PepsiCo generating $95 billion in annual revenue from its brand portfolio, and Starbucks' recovery strategy potentially positioning it as an undervalued dividend stock, appealing to income-focused investors.
See More
Greg Abel's First Shareholder Meeting as CEO Receives Mixed Reviews
- Attendance at Shareholder Meeting: Greg Abel's first annual meeting as CEO saw attendance at just over half capacity, indicating a significant drop in draw compared to the Buffett and Munger era, although it still surpassed typical corporate annual meetings.
- Capital Allocation Concerns: Abel's failure to provide clear guidance on the future of Berkshire's equity portfolio and substantial cash reserves has heightened investor concerns regarding the company's capital allocation strategy, potentially impacting market confidence in Berkshire.
- Lackluster Buyback Performance: Despite announcing a resumption of stock buybacks, Berkshire repurchased only $234 million in shares during Q1, falling short of market expectations and possibly undermining investor trust in the company's buyback strategy.
- New CFO Compensation: The new CFO, Charles Chang, will receive an annual salary of $8 million, a significant increase compared to the previous CFO Marc Hamburg's total compensation of $4.3 million, raising potential shareholder concerns about the reasonableness of executive pay.
See More
