A Motley Fool contributor argues that Mondelēz International, Kimberly-Clark, Target and PepsiCo are undervalued long-term holdings, pointing to durable consumer brands, shareholder returns and plans to grow or refresh their businesses while investors focus on AI.
Management at Mondelēz wants chocolate, biscuits and baked snacks to rise from about 80% to nearly 90% of net revenue over time, with targets of 3%–5% organic growth, high-single-digit adjusted earnings growth and more than $3 billion in free cash flow. Kimberly-Clark's quarterly dividend is $1.28 per share after 54 consecutive annual increases; the article says 2026 operating cash flow covered both dividends and increased investment. PepsiCo raised its annualized dividend 4% for a 54th straight year and plans nearly $9 billion in shareholder returns in 2026.
Target's multi-year plan includes an additional $2 billion for operating improvements and more than $1 billion in extra capital spending, focused on store layouts, in-store service, technology and AI. Same-day and next-day fulfillment already account for a large share of its digital sales. PepsiCo says it is working to cut added sugar, sodium and saturated fat while developing more nutritious products. Zimmerman disclosed no positions in stocks mentioned in the article; The Motley Fool disclosed positions in and recommendations for Target, Amazon and Walmart.
