Tuesday, March 11, 2014

Recent Buy - Pepsico (PEP)

This feels like a bit of a deja vu since I just bought Coke (KO) but earlier this week I purchased shares of the soft drink giant Pepsico (PEP). This is my first position in the stock and I purchased 14 shares at $81.46 a share. I really wish I would have had the money to make this purchase a few weeks ago when Pepsi was around $78 !!! Recently PEP announced a generous 15.4% dividend increase which brings the dividend yield from 2.8% up to around 3.3% which is great.
PepsiCo, Inc. (PepsiCo), incorporated on November 13, 1986, is a global food and beverage company. Through the Company's bottlers, contract manufacturers and other partners, the Company makes, markets, sells and distributes a range of foods and beverages in more than 200 countries and territories.

PEP Basic Statistics

  • Ticker Symbol:PEP
  • PE Ratio: 19
  • Yield: 2.8%
  • Dividend Growth 10yr:  13%
  • Payout Ratio: 52%
  • Market cap: $126 B
  • Website: http://www.pepsico.com


  1. Completely agree with you on the timing of available capital! I think even at $81, you've gotten a great value for PEP. While they aren't going to spin off the snack business at this point, I can envision this happening at some point in the next few years.

  2. Captain:

    PEP will be a nice addition to your portfolio as it complements your KO position very well. Funny how PEP skips the Q4 dividend payment, but pays twice Q1 while KO does the exact opposite. Haha

    Catch you later!

  3. Captain,

    Congrats on initiating the position in PEP, I think you have made a great choice as they are a very strong dividend growth stock, with an extremely strong position in the food/beverage industry. Unless something drastic changes in their management/corporate model I look forward to joining you as a shareholder in the future as my personal funds permit. Well done and congratulations on your new dividends!

  4. Greetings Captain. Pepsi has been on my watch list for a while, although I've owned Coke for nearly 6 years. I love Pepsi's snack business. Congrats on the new purchase. I also wanted to thank you for adding me to your Blogroll. Have a great day

  5. Luckily I had some free capital when PEP took that dip to $78 so I jumped at that opportunity. The snack business is what I really like about PEP because while KO has more geographical diversification, PEP has more product diversification. I still think $81.46 is a decent price so congrats on the new purchase.

  6. Really like the buy. I too need to get in this game.

  7. I like the buy here, PEP is a great company that very diversified with snack brands as well. Great dividend company.

  8. I like the purchase as a fellow PEP shareholder myself. As others have mentioned, it should compliment your KO holding. I couldn't decide between the two so I bought both and have planned half positions for each. I love the snack foods that PEP owns as diversification.

  9. A good purchase, Captain!
    PEP will be one of my core-holdings in the future!

    Planned core-holdings: PEP, KO, JNJ, PG, MCD

    Best regards

  10. Thanks for the great post - enjoyed reading it. Please visit my page Sell Your Business and let me know what you think.

  11. Have you noticed that shopping mall food courts are almost entirely made out of franchise businesses? Using a broker you too can easily buy a franchise business.