PepsiCo (NYSE: PEP) is one of the most well-known and highly regarded dividend stocks out there, and for good reason. PepsiCo has a long track record of paying a dividend. It also has the financial strength to raise its dividend year after year. This makes PepsiCo an ideal dividend stock for investors to buy, particularly for retirees. Investors in or nearing retirement often desire income from their investments to help replace the income lost from no longer receiving a paycheck. That's where dividend stocks can play a huge role in a retirees' portfolio. Here are two reasons why PepsiCo definitely qualifies as a top dividend stock to buy right now.

Sometimes, a stock pays a high yield but doesn't grow its dividend. Other times, it's the reverse, whereby a stock has a high rate of dividend growth but a very low dividend yield. Stocks like these can leave an investor feeling as though there's a missing piece of the puzzle. PepsiCo, however, is an ideal mix of dividend yield and dividend growth. The stock currently yields 2.7%, which compares favorably with the current dividend yield of 1.88% for the S&P 500 Index. If that weren't enough, PepsiCo has a great track record of dividend growth. PepsiCo has increased its dividend for 42 years in a row. Over the past five years, PepsiCo has raised its dividend by 7% compounded annually. This means PepsiCo's dividend doubles every 10 years or so on average.

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