PepsiCo is disappointing investors this year, but it offers dividend dependability and rebound potential if an activist investor can work some magic.For all the talk about the wind possibly coming out of the sails of the artificial intelligence (AI) trade, a real sector rotation hasn't played out.Recent headlines suggest investors are skittish about what the near term holds for growth and technology stocks. Such jitters often compel market participants to move into defensive sectors, but broadly speaking, c ...

Dividend investors usually don’t bother with timing entries, at least not from a technical standpoint. There’s really no need to check things like 7-day indicators, 20, 50 or 200-day moving averages, MACD oscillators, Bollinger Bands, or Commodity Channel Indexes. The best income investors (myself included) tend to focus on the fundamentals, such as whether the stock is cheap or undervalued right now. But, that doesn’t mean that you can’t use technical indicators, becuase sometimes, the best way to start ...

Share The Coca-Cola Company (NYSE: KO) is a total beverage company with products sold in more than 200 countries and territories. Our company's purpose is to refresh the world and make a difference. We sell multiple billion-dollar brands across several beverage categories worldwide. Our portfolio of sparkling soft drink brands includes Coca-Cola, Sprite and Fanta. Our water, sports, coffee and tea brands include Dasani, smartwater, vitaminwater, Topo Chico, BODYARMOR, Powerade, Costa, Georgia, Fuze Tea, Gol ...

Financial Data and Key Metrics Changes - In Q3 2025, volumes increased by 0.4% and revenue grew by 3.2%, outperforming the first half of the year [11] - The company reaffirmed its full-year guidance, indicating strong business resilience [6][19] - The NARTD category grew by approximately 6% in value and volume, highlighting the company's competitive position [7] Business Line Data and Key Metrics Changes - Coke Zero saw a volume growth of 6.3%, driven by promotional activities and partnerships [11] - Energy drinks, particularly Monster, experienced a significant volume growth of 24% in Q3 and 18% year-to-date [12] - Fanta and Sprite also performed well, with Fanta benefiting from a Halloween campaign and Sprite growing by 4.2% [12] Market Data and Key Metrics Changes - The company reported a 0.9% volume growth in Europe, supported by strong performance in the Away From Home segment [14] - The Philippines faced challenges due to flooding, impacting Q3 volumes, but recovery signs were noted in September [17] - Australia Pacific's volumes were down 0.6%, but revenue remained broadly flat excluding one-off impacts [16] Company Strategy and Development Direction - The company focuses on balancing premiumization with affordability, aiming for profitable growth while enhancing consumer value [8] - Investments in technology and infrastructure, including a new canning line and a new plant in the Philippines, are set to support long-term growth [18] - The company is committed to maintaining a balanced growth strategy, emphasizing revenue and margin management [20] Management's Comments on Operating Environment and Future Outlook - Management noted that while consumer sentiment remains challenging, they expect to see volume growth in 2026, supported by effective pricing strategies [24][25] - The company is optimistic about its ability to navigate a potentially softer environment due to its investments in digital tools and revenue management capabilities [29] - The fundamentals of the business are strong, with confidence in achieving mid-term growth objectives despite macroeconomic volatility [20][21] Other Important Information - The company declared a second-half dividend of EUR 1.25 per share, maintaining an annualized payout ratio of approximately 50% [19] - A EUR 1 billion share buyback program is set to conclude in December [19] Q&A Session Summary Question: Consumer affordability and its impact on strategy - Management indicated that consumer sentiment has been consistent, with a focus on value pricing and continued volume growth expected in 2026 [24] Question: Navigating a softer environment - Management expressed confidence in their capabilities to grow volume and revenue, citing investments in revenue and margin growth management as key factors [29] Question: Improvement in Indonesia's performance - Management acknowledged challenges in Indonesia but noted improvements in the sparkling portfolio and ongoing efforts to enhance the tea segment [40] Question: Trends in the Away From Home segment - Management highlighted strong growth in the Away From Home channel, driven by favorable weather and effective customer strategies [48] Question: Energy drinks growth and innovation - Management confirmed that both innovation and core products contributed to the 24% volume growth in energy drinks, with a strong pipeline for future innovations [66] Question: Top line growth outlook for next year - Management refrained from providing specific guidance for 2026 but expressed confidence in achieving mid-term growth objectives despite technical headwinds [72] Question: Key initiatives for 2026 - Management discussed plans for the World Cup activation, continued innovation in energy drinks, and a focus on flavor innovation for key brands [80]

Financial Data and Key Metrics Changes - For Q3 2025, the company reported a volume growth of 0.4% and revenue growth of 3.2%, indicating solid performance compared to the first half of the year [11][14] - The NARTD category grew by approximately 6% in value and also saw volume growth, which is a positive trend not observed in other FMCG categories [7][8] - The company reaffirmed its full-year guidance, reflecting confidence in its business resilience and performance [6][19] Business Line Data and Key Metrics Changes - Coke Zero experienced a volume growth of 6.3% during the quarter, driven by successful marketing campaigns [11] - Energy drinks, particularly Monster, saw a remarkable volume growth of 24% in Q3 and 18% year-to-date, supported by new product launches and distribution strategies [12][66] - The performance of the sparkling beverage segment was mixed, with Coke trademark volumes being flat due to various market challenges, including flooding in the Philippines and increased sugar taxes in France [11][57] Market Data and Key Metrics Changes - In Europe, volume growth was reported at 0.9%, with strong performance in the away-from-home segment contributing positively [14][48] - The Philippines faced challenges due to flooding, impacting distribution and sales, but there are signs of recovery as the market stabilizes [17][40] - The Australian market showed mid to high single-digit growth, supported by strong performance in Papua New Guinea [16] Company Strategy and Development Direction - The company is focused on driving profitable growth while balancing premiumization with affordability for consumers [8][15] - Investments in technology and infrastructure are ongoing, including the opening of a new canning line and the introduction of smart coolers [18][84] - The company aims to enhance its product portfolio, particularly in the energy and ARTD categories, to capture more market share [32][80] Management's Comments on Operating Environment and Future Outlook - Management noted that while consumer sentiment remains challenging, there are positive signs in the away-from-home segment and a return to growth in certain markets [20][46] - The company is confident in its ability to navigate the current environment, emphasizing the importance of value pricing and effective execution [29][30] - Future growth is expected to be supported by ongoing investments and a strong pipeline of innovations [33][66] Other Important Information - The company declared a second-half dividend of EUR 1.25 per share, maintaining an annualized payout ratio of approximately 50% [19] - A share buyback program of EUR 1 billion is set to conclude in December [19] Q&A Session Summary Question: Consumer affordability and its impact on strategy - Management indicated that consumer sentiment has been consistent, with a focus on value pricing and continued volume growth expected in 2026 [23][24] Question: Navigating a potentially softer environment - Management expressed confidence in their capabilities to manage pricing and maintain growth despite market challenges [28][29] Question: Improvement in Indonesia's performance - Management highlighted progress in the sparkling segment while acknowledging challenges in the tea portfolio, with expectations for better performance in 2026 [38][40] Question: Trends in the away-from-home segment in Europe - Management noted strong growth in the away-from-home category, driven by effective customer strategies and favorable weather conditions [45][48] Question: Growth of energy drinks - Management confirmed that both innovation and core products contributed to the strong growth in the energy drinks segment, with a positive outlook for future performance [66][67] Question: Top-line growth expectations for next year - Management refrained from providing specific guidance but expressed confidence in achieving mid-term growth objectives despite technical headwinds [70][72] Question: Focus areas for 2026 - Management discussed plans for continued innovation, particularly in the energy category, and emphasized the importance of the upcoming World Cup for brand activation [80][81]

Financial Data and Key Metrics Changes - In Q3 2025, volumes increased by 0.4% and revenue grew by 3.2%, outperforming the first half of the year [9][12] - The company reaffirmed its full-year guidance, indicating strong business resilience [4][19] - The NARTD category grew by approximately 6% in value and volume, highlighting the company's competitive position [5][19] Business Line Data and Key Metrics Changes - Coke Zero saw a volume growth of 6.3%, driven by promotional collaborations [9] - Energy drinks, particularly Monster, experienced a significant volume growth of 24% in Q3 and 18% year-to-date [10] - Fanta and Sprite also performed well, with Fanta benefiting from a Halloween campaign and Sprite growing by 4.2% [10][11] Market Data and Key Metrics Changes - The company reported a mixed consumer environment across different markets, with growth in the Philippines and GB, but challenges in Germany and Indonesia [12][19] - Away from Home channels showed strong growth, particularly in GB, contributing to overall volume increases [7][12] - The Philippines faced disruptions due to flooding, impacting Q3 volumes, but recovery was noted in September [15][19] Company Strategy and Development Direction - The company is focused on driving profitable growth while balancing premiumization and affordability [5][19] - Investments in technology and infrastructure are ongoing, including a new canning line in Queensland and a new plant in the Philippines [16][17] - The company aims to enhance its market presence through improved distribution and innovative product offerings [19][20] Management's Comments on Operating Environment and Future Outlook - Management acknowledged ongoing consumer affordability challenges but expressed confidence in maintaining pricing strategies and volume growth [22][24] - The company anticipates a return to growth in Indonesia, supported by a new marketing campaign and improved distribution [34][35] - Despite macroeconomic volatility, the company remains optimistic about its mid-term growth objectives, expecting to cycle out of current headwinds [19][60] Other Important Information - A second-half dividend of EUR 1.25 per share was declared, maintaining a payout ratio of approximately 50% [18] - The company is concluding a EUR 1 billion share buyback program in December [18] Q&A Session Summary Question: Consumer affordability and its impact on strategy - Management noted that consumer sentiment has remained consistent, with a focus on value pricing and continued volume growth expected into 2026 [22][24] Question: Navigating a softer environment - The company highlighted its investments in revenue and margin growth management as key to navigating challenges, with confidence in maintaining volume and revenue growth [27][29] Question: Performance in Indonesia - Management discussed improvements in the sparkling portfolio and ongoing challenges in the tea segment, with expectations for better performance in 2026 [34][35] Question: Trends in the away-from-home market - The company attributed growth in the away-from-home segment to favorable weather, effective customer strategies, and increased cooler placements [39][40] Question: Growth of energy drinks - Energy drinks, particularly Monster, showed strong growth driven by innovation and core products, with expectations for continued expansion [54][56] Question: Guidance for 2026 - While specific guidance for 2026 was not provided, management expressed confidence in achieving mid-term growth objectives despite technical headwinds [59][60]

Core Viewpoint - The recent recall of Coca-Cola products has had a limited impact on the company's stock performance, with shares remaining stable despite the recall announcement and subsequent FDA classification as a Class II recall [1][5]. Summary by Sections Recall Details - The bottling plant responsible for the affected Coca-Cola cans initiated a recall on October 3, and the FDA classified it as a Class II recall on October 20, indicating minimal health risks [1][3]. - The recalled products were distributed only in Texas, specifically in the Rio Grande Valley and San Antonio, and all affected products have been removed from store shelves [3]. Stock Performance - Following the recall announcement, Coca-Cola's shares remained relatively flat, and after the FDA's classification, the shares rose to their highest level in October before retreating slightly, ultimately stabilizing around the same level as before the recall [1][5]. - Over the past five years, Coca-Cola shares have increased by approximately 42%, indicating a strong long-term performance [6]. Brand Reputation and Market Response - Product recalls can potentially damage a brand's reputation and lead to consumer hesitance, but in this case, the limited scope and minor health risks contributed to a quick recovery in investor sentiment [2][5]. - Coca-Cola has a long-standing reputation for stability, having raised its dividend for 63 consecutive years, which suggests resilience against the impact of a single recall [7]. Comparison with Other Companies - The article compares Coca-Cola's situation to that of Johnson & Johnson, which faced a severe recall in 1982 but managed to recover quickly due to effective consumer-focused responses [4]. - Smaller or less established companies may not recover as easily from recalls, highlighting Coca-Cola's strong market position [8].

Group 1 - The S&P 500 has increased by 14.5% year to date and over 35% from its April lows, raising questions about the sustainability of the market rally [1] - Investors seeking reliable dividend stocks may find opportunities in the Dow Jones Industrial Average, which consists of 30 industry-leading companies [1] Group 2 - Procter & Gamble (P&G) and Coca-Cola are highlighted as strong dividend stocks, with P&G having a 21.8 forward price-to-earnings (P/E) ratio compared to a 10-year median of 25.7, and Coca-Cola at 23.9 versus a median of 27.7 [6] - Both companies have maintained impressive dividend growth, with P&G raising its dividend for 69 consecutive years and Coca-Cola for 63 years, qualifying them as Dividend Kings [5] Group 3 - McDonald's is noted for its recession-resistant business model, providing affordable food options even amid inflationary pressures [7] - Chevron continues to increase its dividend payouts despite low oil prices, indicating strong financial management [8] - Visa is positioned to return significant cash to shareholders without relying on a booming economy [8]

Group 1 - Coca-Cola has lost a significant court case, resulting in the company no longer having access to Dr. Pepper in certain markets, which is the second-best-selling soda brand [4][6] - The Texas court ruling allows Keurig Dr Pepper to take full control of its distribution, impacting Coca-Cola's supply chain and access to Dr. Pepper in venues and restaurants [4][5] - Sprite remains the dominant player in the lemon-lime soda market, while PepsiCo's attempts to compete have not been successful, with its brands lagging far behind [1][3] Group 2 - PepsiCo has a history of launching various lemon-lime sodas to compete with Sprite, including Teem and Sierra Mist, but these brands have struggled to gain market traction [7] - In 2023, PepsiCo discontinued Sierra Mist and introduced a new brand, Starry, targeting Gen Z with a modern flavor profile and branding [7]

Financial Data and Key Metrics Changes - Consolidated volume declined 0.6% to 1.04 billion unit cases, showing sequential improvement compared to the second quarter [8] - Total revenues grew 3.3% to MXN 71.9 billion, with a currency-neutral increase of 4.7% [9] - Gross profit increased 0.9% to MXN 32.4 billion, leading to a margin contraction of 100 basis points to 45.1% [9] - Operating income rose 6.8% to MXN 10.3 billion, with operating margin expanding 50 basis points to 14.3% [9] - Adjusted EBITDA increased 3.2% to MXN 14.4 billion, with EBITDA margin remaining flat at 20.1% [10] - Majority net income slightly increased to MXN 5.9 billion, driven mainly by operating income growth [10] Business Line Data and Key Metrics Changes - In Mexico, volumes declined 3.7% due to a soft macroeconomic backdrop, while Coca-Cola Zero grew 23% year on year [10][12] - Guatemala saw a volume increase of 3.2% to 50.8 million unit cases, with Coca-Cola Zero growing 16.9% [16] - In Brazil, volumes increased 2.6% year on year, with Coca-Cola Zero growing volumes by 38% [18] - Colombia's volumes grew 2.9%, reflecting a gradually recovering economy [20] Market Data and Key Metrics Changes - Mexico faced a soft macroeconomic environment impacting consumer preferences and demand [7] - South America experienced a more resilient macro and consumer environment, supporting positive volume performance [7] - The House of Representatives approved an 87% increase in the excise tax on soft drinks in Mexico, effective January 2026 [14] Company Strategy and Development Direction - The company focuses on a sustainable growth model, RGM affordability initiatives, and cost control measures to navigate challenging operating conditions [8] - The strategy includes maintaining household penetration and volume base while addressing short-term headwinds with productivity initiatives [15][24] - The company aims to incentivize low and non-caloric products in response to the new excise tax [15][86] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in adapting to challenging conditions, particularly in Mexico due to the excise tax increase [7][15] - The company anticipates a challenging year for volume performance in Mexico in 2026 but expects positive brand equity impacts from the World Cup [15] - Management highlighted the importance of maintaining competitive positioning and adapting strategies in Argentina, Colombia, and Guatemala [40] Other Important Information - The company has implemented cost control measures and productivity initiatives to improve profitability [39] - The supply chain team has achieved significant savings, generating $90 million year to date [32] Q&A Session Summary Question: Insights on profitability improvement in Mexico and Central America - Management noted that profitability improvements were driven by savings initiatives and operational adjustments rather than solely volume recovery [37][39] Question: Strategies for Argentina, Colombia, and Guatemala - Management discussed the importance of maintaining household penetration and adapting strategies to local market conditions in these regions [40][44] Question: CapEx plans for next year - Management indicated a rethinking of CapEx, primarily delaying investments in response to expected volume declines due to the excise tax [50][52] Question: Volume outlook for Mexico next year - Management provided a preliminary outlook of low to mid-single-digit volume declines for Mexico, considering the impact of the excise tax [62][67] Question: Pricing strategies in light of new taxes - Management confirmed plans to pass through the excise tax and adjust pricing strategies to maintain consumer choice while incentivizing low-calorie options [86]