Consumer staple stocks, such as PepsiCo (NASDAQ:PEP), can be a great addition to any long-term portfolio because they are known to perform well during recessions and provide consistent dividend increases over time. While they may not be as exciting as some of the cutting-edge tech stocks that have been propelling the market higher in recent months, there is something to be said for a well-known brand name company that consistently delivers steady gains and strong earnings.

When it comes to evaluating the major beverage companies, PepsiCo and Coca-Cola are neck and neck. While both of these stocks have a lot to offer investors, there are a few reasons why they should consider PepsiCo stock right now. The global snack and beverage conglomerate owns some of the world’s most recognizable brand names and is seeing a nice rebound in the areas of its business that were impacted by the pandemic. It’s a very appealing option for investors interested in consumer staples, with over 49 consecutive years of dividend growth and a strong balance sheet.

First, PepsiCo stock is worth adding due to its impressive Q2 earnings release, which confirms the company is successfully executing its business strategy. The report pushed the stock to a new all-time closing high, potentially paving the way for higher prices in the future. PepsiCo reported Q2 net sales of $19.22 billion, up 20.5 percent year on year, and earnings per share of $1.70, up 44 percent year on year. The report also highlighted the company’s 12.8 percent organic revenue growth in the second quarter. Organic growth provides a clearer picture of how a company is expanding by increasing output and improving internal sales, as it excludes the effects of things like foreign currency, acquisitions, and other factors.

Following the strong quarter, the company raised its full-year earnings guidance, implying that PepsiCo will continue to perform well for the rest of the year. PepsiCo now expects organic revenue growth of 6% and EPS growth of 11% for the year, both of which are well above the company’s initial estimates. There’s also the fact that PepsiCo announced a $1 billion cost-cutting plan that will last until 2026 and will help the company’s bottom line in the long run. Finally, investors should be excited about how the company is shifting its portfolio toward offering healthy products, as well as PepsiCo’s potential in emerging markets, both of which are positives for the company’s earnings.

Remember, PepsiCo sells a lot of its soft drinks in restaurants, bars, stadiums, and other public places. The pandemic had a significant impact on this area of the company’s business, as many people stayed at home to avoid putting their health at risk. With more people getting vaccinated on a daily basis, the stock appears to be a great reopening play. It’s amazing to see how quickly people are getting back out into the world after a tumultuous year, which clearly helped PepsiCo’s Q2 earnings numbers.

Look no further than PepsiCo’s Q2 North America beverage segment’s organic revenue growth of 21%, the highest of any of the company’s divisions, for proof that this company will benefit from people returning to public places to enjoy life. The bottom line is that investing in PepsiCo is a prudent and conservative way to capitalize on the reopening, especially when compared to stocks in the airline and travel industries, which face a more uncertain road to recovery.

Finally, PepsiCo stock is a good buy right now because it is a defensive blue-chip stock. Volatility in the market can happen quickly, especially since the indices have been steadily rising for the past few weeks. It might be a good idea to start overweighting low-volatility names like PepsiCo, especially if you believe the market is due for a correction. With a beta of 0.61, investors will not be rewarded with massive market outperformance during rallies, but they will also not be exposed to massive drawdowns if the market falls.

PepsiCo, like many low-volatility blue-chip stocks, focuses on returning capital to shareholders, which is certainly appealing to long-term investors. The dividend yield of 2.88 percent offered by the company is certainly appealing, and it can provide you with peace of mind knowing that your investment is producing income regardless of market conditions.