Core Viewpoint - The recent stock market volatility has led investors to favor stable consumer staples, particularly those with predictable dividend growth, with PepsiCo showing resilience while Coca-Cola demonstrates stronger growth metrics [1][2]. Growth and Outlook - Coca-Cola has outperformed PepsiCo in organic sales growth, achieving a 14% increase compared to PepsiCo's 2% [2]. - Coca-Cola projects organic revenue growth of 5% to 6% for the upcoming year, while PepsiCo anticipates low-single-digit revenue gains [2]. - PepsiCo's sales volume declined by 1% last quarter, contrasting with Coca-Cola's 2% increase, indicating Coca-Cola's better pricing power and volume retention [3]. Cash Flow and Returns - PepsiCo plans to allocate $7.6 billion for dividends and $1 billion for stock buybacks in 2025 [4]. - Coca-Cola spent $8 billion on dividends and $1.1 billion on stock buybacks last year, with both companies increasing their dividends by 5% in 2025 [5]. Valuation - PepsiCo shares are trading at 18 times expected earnings, while Coca-Cola's forward P/E is 24, indicating a valuation premium for Coca-Cola [6]. - In terms of revenue valuation, PepsiCo trades at 2.3 times revenue compared to Coca-Cola's 6.5 times [6]. Profitability - Coca-Cola boasts a higher operating profit margin of 30%, significantly surpassing PepsiCo's 14% [7]. - Coca-Cola's strong growth and profitability justify its premium valuation, making it a preferred choice for many investors [8]. Investment Preference - While PepsiCo offers a higher yield at 3.55% compared to Coca-Cola's 2.7%, Coca-Cola's overall business performance and stability make it a more attractive investment [5][8]. - Coca-Cola's consistent dividend increases, marking its 63rd consecutive year, solidify its status among Dividend Kings [8].

Core Viewpoint - The recent drop in the Nasdaq Composite and S&P 500 has led investors to seek safer investments, particularly in consumer staples, but not all consumer staples stocks are advisable to buy now [1] Group 1: Consumer Staples Overview - Consumer staples companies provide essential products that consumers regularly purchase, making them generally viewed as safer investments during economic downturns [2] - Over the past month, the average consumer staples stock has declined less than the S&P 500 or Nasdaq Composite, indicating relative stability [3] Group 2: Company Performance - PepsiCo has outperformed the average consumer staples stock, with a 2.6% increase in value over the past month, while the average consumer staples stock has decreased by 2.6% [3] - In 2024, PepsiCo reported a 2% rise in organic sales and a 9% increase in adjusted earnings, demonstrating solid business performance despite previous inflation-driven price hikes [4] Group 3: Stocks to Avoid - Kraft Heinz is struggling, with organic sales in its key segment declining from a 0.5% increase in Q1 to a 5.2% drop in Q4 of 2024, indicating it is not a safe investment despite a 5.3% dividend yield [6] - Conagra's organic sales rose only 0.3% in Q2 of fiscal 2025, while adjusted earnings fell 1.3%, raising concerns about investing in its second-tier brands despite a 5.4% dividend yield [7] - B&G Foods offers a high dividend yield of over 10%, but its acquisition-driven model has resulted in a heavy debt load, making it a risky investment despite the attractive yield [8]

Hi, my name is Kody. Aside from my articles here on Seeking Alpha, I am also a regular contributor to Sure Dividend, The Dividend Kings, and iREIT+Hoya Capital. I have been investing since September 2017 (age 20) and interested in dividend investing since about 2009.Since July 2018, I have ran Kody's Dividends. This is a blog that is documenting my journey towards financial independence using dividend growth investing as the means to transform the dream of financial independence into a reality. It's also th ...

Group 1 - The Consumer Staples Sector ETF (XLP) experienced a significant rally from mid-January to early March, driven by a broader risk-off trade that shifted investments from high-momentum equities to blue-chip stocks [1] - This shift in investment strategy indicates a growing preference for stability and reliability in the consumer staples sector during uncertain market conditions [1] Group 2 - PepsiCo is highlighted as a key player within the consumer staples sector, benefiting from the recent market trends favoring established companies [1]

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]