PepsiCo is not only one of the biggest companies in the world but a great investment opportunity, some experts assert
Pepsi Co is not only one of the biggest companies in the world but a great investment opportunity, some experts assert. With a stunning 120-year history and over $10 billion of operating profit in its last fiscal year, PepsiCo is one of this world’s most valuable and well-known brands. And it’s no stranger to the stock market – PepsiCo shares have been available since 1972 but it was in the 2000s that their value increased greatly. ↗️
How great exactly? According to CNBC data, a $1,000 investment in PepsiCo in 2009 would be worth more than $2,600 as of 2019. This is mainly due to the fact that the brand increased its sales and margins steadily, it was able to increase its dividend Compound annual growth rate (CAGR) by 8.32% in the last 10 years. Looking back, data shows that PepsiCo has in fact 46 years of consecutive dividend increases.
It’s no wonder that thousands choose to invest in PepsiCo shares – the brand has a very, very reliable revenue generation history and big potential to increase its dividends in mid- or even long-term. Another thing that draws investors to PepsiCo is that the company returns the biggest part of its earnings to its shareholders. Thus, after investing about $3 billion back into the business in 2018, in 2019 PepsiCo now has about $6 billion to direct back to shareholders. There are those who question the company’s rock-solid financial position. On February 1st 2019, Ivan Feinseth of financial firm Tigress Financial Partners, quoted by CNBC pinpointed one big isue with PepsiCo: “The biggest problem that Pepsi and similar companies face, is that there is no growth in carbonated soda.”
However, PepsiCo does offer products other than sodas and has recently made new acquisitions to diversify its portfolio of products. The company also owns popular snack brands Cheetos, Doritos and Lays, as well as beverage brands like Gatorade and Lipton.
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