There Are Only a Handful of Nasdaq-100 Stocks That Yield Over 3%. Here’s My Top Pick to Buy in September.
Most investors think of the Nasdaq-100 index as a tech index. That’s not unreasonable, given that 66% of the index is, indeed, in the technology sector. However, if you are looking for a high-yield stock, tech usually isn’t the place to look. Which is why my pick in September is from the just over 2% weighting in consumer staples companies.
PepsiCo (PEP -2.92%) has a yield of roughly 4.3%. For reference, the S&P 500 index (^GSPC +0.17%) yields only about 1%, while the average consumer staples stock yields roughly 2.1%. So that yield is attractive on both an absolute and a relative basis. Here’s a quick rundown on why PepsiCo’s yield is so high and why I bought it anyway.
Image source: Getty Images.
PepsiCo isn’t hitting on all cylinders
In the second quarter of 2026, PepsiCo’s organic sales rose 2.4%. That’s actually not a terrible number for a consumer staples company, but it is less than half the 6% that Coca-Cola (KO +0.22%) achieved. Given that these two companies are key competitors in the beverage space, you can see why Wall Street isn’t happy with PepsiCo’s business results.
To be fair to PepsiCo, its business spans beverages, snacks, and packaged food products. So it is far more diversified than Coca-Cola. Right now, that’s a headwind, but I actually see the added diversification as a net positive. I believe it gives PepsiCo more levers for long-term growth.
Today’s Change
(0.22%) $0.19
Current Price
$88.25
Key Data Points
Market Cap
Day’s Range
$87.52 – $88.28
52wk Range
$65.35 – $92.49
Volume
28M
Avg Vol
16.8M
Gross Margin
61.95%
Dividend Yield
2.38%
But right now, consumer tastes are shifting. Some of that is related to a general increase in health consciousness. And some is tied to the development of GLP-1 weight-loss drugs, which are changing the way people eat. The why here is less important than the fact that there is a change. PepsiCo is aware of it and is working to update its brand portfolio. That takes time, and Wall Street is famously impatient, so the stock price has fallen. I think that’s an opportunity for long-term investors like me.
PepsiCo has dealt with change before
What’s important to remember right now is that consumer buying habits shift constantly. While the current change may feel dramatic, at least partly due to the impact of GLP-1 drugs, PepsiCo has adjusted its business many times over the past 54 years. Fifty-four may seem like an oddly specific number, but it really isn’t. It is the number of years that PepsiCo has increased its dividend.
Today’s Change
(-2.92%) $-3.91
Current Price
$129.75
Key Data Points
Market Cap
Day’s Range
$129.55 – $132.30
52wk Range
$129.55 – $171.48
Volume
23.5M
Avg Vol
8.4M
Gross Margin
53.98%
Dividend Yield
4.47%
That streak makes PepsiCo a Dividend King. A company can’t create a streak like that by accident. It requires a strong business plan that gets executed well in both good times and bad. Today is just a “bad” time. Given the consumer staples giant’s long and successful history, I’m confident it will eventually get back on track. To get there, it is leaning into innovation and acquiring on-trend brands.
PepsiCo is paying you well to wait
Not only is PepsiCo’s yield high relative to the S&P 500 and the average consumer staples stock, but it is also near the highest levels in the company’s own yield history. Wall Street is basically treating PepsiCo as if it is a terrible business, even though organic sales are still increasing and the company remains highly profitable, with second-quarter earnings of $2.20 per share, up 4% year over year. This is not a money-losing start-up on the verge of bankruptcy.
If you buy PepsiCo today, you can collect an attractive yield while this historically well-run company adjusts its brand portfolio, as it has many times before. While the stock isn’t a risk-free investment, I think the risk-versus-reward balance is tilted heavily toward reward.
