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PepsiCo: A New Dividend King Is Coming With 48 Years Of Increasing Dividends

Published Sat, 17 Oct 2020 09:06:04 -0400 on Seeking Alpha

Seeking AlphaDividend Ideas | Consumer PepsiCo: A New Dividend King Is Coming With 48 Years Of Increasing DividendsOct. 17, 2020 9:06 AM ET|| About: PepsiCo, Inc. (PEP)by: William StammWilliam Stamm Long Only, Dividend Growth Investing, Growth At Reasonable Price, Total ReturnSummaryPepsiCo's dividend yield is above average at 3% and has been increased for 48 years in a row as a dividend aristocrat, an increase to 49 years expected next year.
PepsiCo's three-year forward CAGR estimate of mine at 7% is fair and will give you growth with the increasingly growing world economy and population after the virus is controlled.
Earnings for PepsiCo's last quarter were great, beating estimate by $0.17, higher earnings than last year, and increasing revenues of 5.2% year over year.
PepsiCo (PEP), one of the largest manufacturers and distributors of snack food and beverages, is a buy for the dividend growth and total return investor. PepsiCo has steady growth and has plenty of cash, which it uses to buy bolt-on companies, add new products, and increase the dividend each year. Even with an earnings beat in the last quarter, Mr. Market viewed PEP as fully valued. I think this is an opportunity to buy a great defensive company at a discount if you do not have a company position. PEP is 0.7% of The Good Business Portfolio, my IRA portfolio of good business companies balanced in all styles of investments.

Source: PepsiCo website
As I have said before in previous articles:
I use a set of guidelines that I codified over the last few years to review the companies in The Good Business Portfolio (my portfolio) and other companies that I am reviewing. For a complete set of guidelines, please see my article "The Good Business Portfolio: Update to Guidelines, March 2020". These guidelines provide me with a balanced portfolio of income, defensive, total return, and growing companies that hopefully keeps me ahead of the Dow average.
When I scanned the... Read more