Will buying PepsiCo stock today set up you for the rest of your life?
When searching for new stocks to invest in, dividend investors usually try to find a good compromise between income, income stability and growth potential. There is no full investment that will rise at once in all three, so you need to make trade-offs. Now, PepsiCo (NASDAQ: PEP) It appears to offer a good combination of positives to investors. Because they face short-term negatives that look like temporary headwinds.
Here’s why buying PepsiCo today can help you set up your lifetime of reliable dividends:
Given the name of the company, PepsiCo is often considered a beverage company. This is not wrong, as it produces a wide range of drinks along with the brand of that name. However, the company is much more diverse, and snacks and packaging foods are much more diverse. actual, Consumer standard Giant’s snack business is probably more exciting than the beverage business, considering Pepsico is the second player in non-alcoholic beverages, but the first player in the salty snacks of the Fritray business.
Also, although packaged food operations are not near the top of the pack, there is a serious name recognition in PepsiCo’s Quaker Oats division. PepsiCo is a huge force within the consumer staples sector, with a diverse portfolio of truly differentiated products. It’s pretty close to one stop shop Food space.
Meanwhile, its industry-leading position is protected by its size and size. Pepsico has a distribution network and marketing team that is difficult to compete with. Given its size and financial strength, it can serve as an industry integrator and should be aware that it has recently just purchased a Mexican-American food brand called SIETE. This type of acquisition could quickly add to PepsiCo’s growth as small businesses plug into PepsiCo’s distribution network and profit from increasing advertising.
So, from a large perspective, PepsiCo is the kind of company that allows investors to benefit from strong possibilities for long-term business growth. However, that’s a small story because buying a good company that’s too expensive can turn it into a bad investment.
Pepsico’s recent performance, coupled with the tough industry dynamics, has pushed stocks into the realm of value. The dividend yield of 3.6% is an all-time high, with the value ratio of price-to-selling, revenue to price, and book value all falling below the five-year average. Pepsico stock appears to be listed on the sales rack.