My long-term financial goal is to eventually collect enough passive income each year to cover my basic living expenses. One aspect of my strategy is to invest in companies that pay an above-average dividend that steadily rises. That should enable me to achieve my passive income goal sooner.

I'm always looking for new dividend stocks to help me reach my goal. That pursuit recently led me to buy shares of PepsiCo (PEP 1.22%). Here's why I think the beverage and snacking giant can help me quench my thirst for more passive income.

Among the dividend elite

PepsiCo currently offers a dividend yield of around 3.8%. That's well above its historical average range of 2.5% to 3% over the past decade. Its yield is currently more than three times higher than the S&P 500's dividend yield (1.2%). That high-yielding payout will enable me to generate more income from every dollar I invest in the stock, which will certainly help satisfy my thirst for passive income.

The beverage and snacking giant has a phenomenal record of paying dividends. It has paid consecutive quarterly dividends since 1965, while last year marked its 52nd straight year of annual dividend growth, keeping it in the elite group of Dividend Kings. Since 2010, PepsiCo has grown its dividend at a 7.7% compound annual rate, including by 7% last year.

The company can easily afford its high-yielding dividend. It generates strong cash flow and has an excellent balance sheet. It expected to pay $7.2 billion in dividends last year and repurchase $1 billion of its shares. Meanwhile, it ended the third quarter with about $8 billion of cash on its balance sheet and a low leverage ratio, which supports its A+/A1 bond rating.

More growth ahead

PepsiCo expects to continue growing its revenue and earnings at solid rates in the coming years, which should support future dividend increases. The company was on track to deliver low-single-digit organic revenue growth last year and at least an 8% rise in its earnings per share. That tracks with the company's long-term targets of producing 4% to 6% organic revenue growth and high-single-digit earnings per share growth.

The company has a massive opportunity to continue expanding. It estimates that the global beverage and convenient food opportunity is over $1.2 trillion. With less than $100 billion in revenue, PepsiCo has a long growth runway ahead.

PepsiCo is investing heavily in growing its business. It expanded its energy drinks and water offerings. It has also reduced sugar and sodium to make its drinks and snacks healthier while adding whole grain and baked offerings. In addition, it added more packaging choices for portion control and launched bold new flavors. The company has also continued to work on expanding its international sales.

The food and beverage company will also use its strong balance sheet to make acquisitions that enhance its ability to grow. For example, it bought Garza Food Ventures for $1.2 billion last October, adding the maker of tortillas, salsas, seasonings, sauces, cookies, and snacks to its portfolio. The company also acquired the remaining 50% interest in the Sabra and Obela products last year, accelerating its innovation in refrigerated fresh dips and spreads. These accusations have enabled PepsiCo to evolve its food portfolio to give consumers more choices.

Too tempting to pass up

PepsiCo's stock price has been under a bit of pressure over the past year (down 20% from its 52-week high) due to lower-than-expected sales growth and concerns that weight loss drugs will reduce consumers' appetite for sweet drinks and savory snacks. While it has faced some near-term headwinds, its long-term growth outlook remains strong, especially as it continues expanding its healthier options. That's why I think the sell-off has made PepsiCo's higher-yielding dividend too tempting to pass up. I believe it can supply me with a satisfying stream of steadily rising dividend income in the coming years.