#2 - Pepsico (NASDAQ:PEP)
The Pepsico (NASDAQ:PEP) versus Coca-Cola (NYSE:KO) debate extends to more than just the taste of each company’s respective carbonated beverages. Battle lines are frequently drawn on the company’s stock.
The pandemic has tested the narrative that demand for the company’s products was a foregone conclusion. Consumers couldn’t pick up the slack from the demand that was lost due to the suspension of live events and the shuttering of bars and restaurants. That, however, plays to Pepsi’s favor because Pepsi has been growing its snack food division which gives them a “both/and” model that Coke can’t currently match.
Another reason why dividend investors should consider Pepsico stock is because of its payout ratio which at 58.66% is well below Coke which has a payout ratio in the 80% range. This simply means that Pepsi should have more flexibility to increase its dividend going forward.
Pepsi should be one of the winners as the economy begins to reopen and they can begin to generate revenue from traditional distribution channels. And with a nifty dividend to boot, Pepsi is a solid addition to this list.
About PepsiCo
PepsiCo, Inc engages in the manufacture, marketing, distribution, and sale of various beverages and convenient foods worldwide. The company operates through seven segments: Frito-Lay North America; Quaker Foods North America; PepsiCo Beverages North America; Latin America; Europe; Africa, Middle East and South Asia; and Asia Pacific, Australia and New Zealand and China Region.
Read More - Current Price
- $152.89
- Consensus Rating
- Hold
- Ratings Breakdown
- 6 Buy Ratings, 9 Hold Ratings, 1 Sell Ratings.
- Consensus Price Target
- $184.31 (20.5% Upside)
