Sometimes, we analysts write an article on a stock whose thesis requires many hundreds or thousands of words to rigorously piece together into a conclusion. In my last article on Pepsico (PEP) , while I hope readers went "cover to cover" on it, AsI'm Rob Isbitts, founder of Sungarden Investment Publishing. I run the new investing group Sungarden YARP Portfolio, a community dedicated to navigating the modern investment climate with humility, discipline, and a non-traditional approach to income investing. I'v ...

PURCHASE, N.Y., March 13, 2025 /PRNewswire/ -- PepsiCo, Inc. (NASDAQ: PEP) today announced that it will issue its first-quarter 2025 (ending March 22) financial results and other related information on Thursday, April 24, 2025 by posting the following materials and links on the company's website at www.pepsico.com/investors. Press release and 10-Q at approximately 6:00 a.m. EDT Prepared management remarks (in PDF format) at approximately 6:30 a.m. EDT Live question and answer session for analysts with Ramon ...

Group 1: PepsiCo - PepsiCo is currently facing slower growth in both revenue and earnings compared to the post-pandemic period, as it can no longer implement significant price increases [2][3] - For 2024, PepsiCo anticipates organic revenue growth of 2% and adjusted earnings growth of 9%, with similar expectations for 2025 [3] - Despite the slowdown, these growth figures are considered respectable within the consumer staples sector, which is known for steady growth [4] - PepsiCo offers a historically high dividend yield of 3.5%, supported by over 50 years of annual dividend increases, making it attractive for dividend investors [5][4] - The company is a major player in the beverage and snack industries, with a diversified portfolio and strong global distribution and marketing capabilities [6] - The recent share price pullback of approximately 20% presents a buying opportunity, especially if market conditions shift towards safer investments [6] Group 2: Hershey - Hershey is currently facing challenges due to rising cocoa prices and potential impacts from new weight loss drugs, leading to a stock decline of around 33% from recent highs [7] - The high cocoa prices are expected to stabilize over time as production adjusts, while Hershey plans to raise prices and manage costs in the interim [8] - Concerns regarding weight loss drugs may be overstated, as historical trends suggest consumers may not abandon chocolate, which remains a cost-effective indulgence [9] - Hershey's dividend yield has increased to about 3% due to the stock price drop, making it an attractive option for dividend investors [9] - The Hershey Trust, which holds 79% of the voting power, ensures that the company prioritizes reliable and growing dividends, allowing management to make long-term decisions without pressure [10] - The current high yield presents a potential opportunity for investors to establish a position in Hershey, especially if market conditions become turbulent [11] Group 3: Market Context - Both PepsiCo and Hershey have outperformed the S&P 500 index during a recent period of market uncertainty, indicating potential resilience [12] - The stocks of both companies remain below recent highs, and their historically high yields make them attractive for long-term dividend investors [13] - Investors are encouraged to act quickly, as the current opportunity may not last [13]

Core Viewpoint - The ongoing trade dispute between the U.S. and key trading partners is disproportionately affecting certain companies, particularly those facing tariffs, such as PepsiCo [1]. Group 1: Company Impact - PepsiCo has been negatively impacted by the current tariffs, resulting in a nearly 3% decline in its share price on a day when the S&P 500 index gained 0.5% [2]. - A group of major American food and drink manufacturers, including PepsiCo, has formally requested exemptions from tariffs on certain ingredients not available from U.S. sources, such as cocoa and fruit [3][4]. - Jefferies has downgraded PepsiCo's rating from buy to hold, citing general weakness and market share losses as reasons for the delayed turnaround [5]. Group 2: Industry Response - The letter from food and drink manufacturers to President Trump emphasizes the need for a targeted removal of tariffs on specific inputs to protect domestic manufacturers and mitigate consumer inflation [4]. - The potential fallout from the trade dispute raises concerns about the overall health of the food and beverage industry, suggesting that PepsiCo may be a stock to avoid for the time being [6].

I aim to invest in companies with perfect qualitative attributes, buy them at an attractive price based on fundamentals, and hold them forever. I hope to publish articles covering such companies approximately 3 times per week, with extensive quarterly follow-ups and constant updates.I manage a concentrated portfolio targeted at avoiding losers and maximizing exposure to big winners. This means that often I'll rate great companies at a 'Hold' because their growth opportunity is below my threshold, or their d ...

Group 1: Market Overview - The Nasdaq Composite started the week down 4%, marking its worst day since September 2022, and is currently 12.5% off its all-time highs [1] Group 2: Dividend Stocks Appeal - Dividend stocks provide reliable income, especially during market downturns, allowing investors to book returns without selling shares [2] - The focus on dividend stocks increases as investors seek passive income and capital preservation [18] Group 3: PepsiCo Analysis - PepsiCo has a high dividend yield of 3.6% and has raised its dividend for 53 consecutive years, supported by a diversified business model [4][6] - Despite a stagnant stock price over the past four years, PepsiCo maintains a low P/E ratio of 21.3, making it an attractive investment compared to Coca-Cola [7][5] Group 4: Chevron Analysis - Chevron has a 4.4% dividend yield and has increased its dividend for 38 consecutive years, demonstrating resilience during economic downturns [8] - The company generates significant free cash flow even at lower oil prices and has a strong balance sheet with minimal debt [9][10] - Chevron's ability to maintain dividends during downturns is supported by its solid financial position [11] Group 5: Southern Company Analysis - Southern Company operates in a regulated utility sector, providing predictable income and a clear path for dividend growth [12][13] - The stock has increased over 7.7% year-to-date, with a P/E ratio of 22.2 and a dividend yield of 3.2%, indicating it is not overpriced [14][15] - Factors such as population growth and the transition to cleaner energy sources support Southern Company's long-term growth [16] Group 6: Summary of Investment Opportunities - PepsiCo, Chevron, and Southern Company are highlighted as reliable dividend stocks with strong track records, high yields, and robust business models [17] - These companies are suitable for risk-averse investors focused on capital preservation rather than capital appreciation [18]

Jefferies downgraded PepsiCo Inc (NASDAQ:PEP) stock to "hold" from "buy," and cut its price target to $170 from $171. The analyst in coverage cited limited upside potential amid a soft beverages market.Analysts were divided on PEP coming into today, with 10 calling it a tepid "hold" or worse, while 10 said "strong buy." Should more firms swing to the bearish side, the security could dip even lower.The shares are on track for their third loss in the last four sessions, and have fallen more than 15% in the la ...

The start of 2025 has proven to be more challenging for investors compared to the stock market's record-breaking highs of 2024. The Nasdaq Composite index is down approximately 13% from its all-time high, amid renewed jitters regarding the strength of the economy and uncertainty over the effect of trade tariffs being implemented by the Trump administration.Investors seeking some relief from the volatility should take a closer look at index constituent PepsiCo (PEP -2.51%). Shares of the packaged foods giant ...

There's nothing particularly magical about a 10% drop in a stock market index. It is just a number, like any other. But it still stirs up emotions, particularly the fear of losing money. That's a very powerful motivator, and with the Nasdaq Composite off by more than 10% as of this writing, fear is in the air today.If you feel like you need to find some "safe" (or least safer) stocks, try looking at reliable dividend payers like PepsiCo (PEP -2.51%), Enterprise Products Partners (EPD -1.43%), and Black Hill ...

Group 1: Company Overview - Coca-Cola focuses exclusively on beverages, leveraging a vast global distribution network and strong marketing skills, making it a leader in the consumer staples sector [2] - PepsiCo, while also a major beverage player, diversifies its offerings with snacks and packaged food products, maintaining a strong distribution network and marketing capabilities [3] - PepsiCo ranks as the No. 1 snack brand and holds a solid No. 2 position in the broader beverage market, showcasing its diversified business model [4] Group 2: Dividend Strength - Both Coca-Cola and PepsiCo are recognized as Dividend Kings, indicating robust underlying business models, with Coca-Cola having a longer dividend streak [5] Group 3: Current Performance - Currently, Coca-Cola is outperforming PepsiCo, which is experiencing some business weakness, particularly after a period of significant price increases due to inflation [6][7] - PepsiCo reported organic sales growth of 2% and core earnings growth of 9% in 2024, with expectations for similar performance in 2025 [7] Group 4: Stock Valuation - PepsiCo's stock has declined approximately 20% from its peak in 2023, resulting in a historically high yield and price-to-sales and price-to-earnings ratios below five-year averages, suggesting it is undervalued [8] - In contrast, Coca-Cola's stock has rallied, leading to a lower dividend yield and price ratios above their five-year averages, making it appear more expensive [9] Group 5: Investment Recommendation - For long-term investors, particularly those focused on income, PepsiCo presents a more compelling investment opportunity due to its attractive yield of 3.5% following Coca-Cola's recent price rally [10]