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Uncovering Unfamiliar Aspects of PepsiCo: One Surprising Fact You Shouldn't Ignore.

Dividend Yield depicted on a notepad, positioned atop papers featuring a graph, with a magnifying...
Dividend Yield depicted on a notepad, positioned atop papers featuring a graph, with a magnifying glass hovering nearby.

Uncovering Unfamiliar Aspects of PepsiCo: One Surprising Fact You Shouldn't Ignore.

PepsiCo, a well-known name in the corporate world, is a company that most investors are familiar with. Yet, there's a crucial aspect of PepsiCo that investors should consider when looking at its dividend: its historic consistency.

Currently, PepsiCo's dividend yield stands at an enticing 3.6%, hinting at a potential discount. However, this Dividend King boasts a rich history of dependable dividend growth that significantly alters the dividend narrative.

So, what does PepsiCo do exactly? It's more than just your average cola seller. As the No. 2 beverage company in the US behind Coca-Cola, PepsiCo's beverage business stretches beyond Pepsi, making up a substantial portion of its revenue. But PepsiCo's prowess doesn't stop there; it is also the leading U.S. company in salty snacks, thanks to Frito-Lay, and boasts a notable packaged food operation under its Quaker Oats division.

PepsiCo holds its own in every business it enters, giving it a distinctive edge as a consumer staples giant. With an impressive marketing and distribution network, PepsiCo represents a valuable partner for retailers worldwide. However, it's worth noting that its financial performance has been relatively dippy recently. Searching for clarity in such market unpredictability can seem challenging, but, historically, such periods tend to pass.

When you take a closer look at PepsiCo's dividend, it presents an even more compelling picture. With an impressive streak of 52 consecutive years of raising its dividend, PepsiCo joins the prestigious group of Dividend Kings. This record indicates that the company has a well-managed operation, both during the good times and the bad ones, making it a reliable choice for investors.

Inflation has a tendency to erode purchasing power, but over the past decade, PepsiCo's dividend has seen an annualized growth rate of 7%. Given that inflation tends to grow at nearly half this rate, as a shareholder, the value of your dividend advances.

Considering PepsiCo's yield on cost, the story continues to shift in your favor. Let's say you bought the stock at its highest price in 2013. With a quarterly dividend of $0.56 per share at the time, the yield was 2.6%. In the present day, the quarterly dividend stands at $1.355, resulting in a yield on cost of around 6.2%. This increase in yield, integrated with the stock's notable price appreciation, showcases how PepsiCo's long-term shareholders have gained significantly.

In conclusion, PepsiCo's high dividend yield today might be an opportunity too good to pass up, given the company's proven track record of dividend growth in good times and bad. As a dividend investor who thinks long-term, the yield on cost is a metric you can't disregard when considering adding PepsiCo to your investment portfolio.

Investors who are interested in financing their future should consider PepsiCo's attractive dividend yield of 3.6%. With a history of dependable dividend growth, PepsiCo, a Dividend King, has increased its dividend for 52 consecutive years, making it a reliable choice for long-term investors.

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