Money and Finance
Consumer staples companies are the bread and butter of the dividend growth philosophy. The biggest reason for that is the consistency in their operations. In general they have rather inelastic demand compared to other sectors of the economy and for the companies with strong brands they have excellent pricing power. You might put off the purchase of a new car if the economy isn't firing on all cylinders but are you really going to stop eating or bathing?
PepsiCo (NYSE:PEP) is a fine example of an excellent consumer staple company with brand recognition, pricing power and even better growth. Forbes even recognized PepsiCo as the 29th Most Valuable Brand earlier this year and I expect PepsiCo to continue moving forward.
Historically, PepsiCo has been a wonderful investment with 43 consecutive years of dividend growth. Every dollar you invested 10 years ago has turned into $2.26 today. Every dollar invested 20 years ago has turned into $6.31 today and every dollar invested 30 years ago has turned into $55.94 today. That's an impressive record and I'm glad to call myself an owner (too bad my shares weren't purchased 30 years ago though).
Continue reading the PepsiCo quick analysis on Seeking Alpha.
For more detailed analyses check out my Stock Analysis page.
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Money and Finance
PepsiCo Inc.: You're Paying Up For This Consumer Staple
Consumer staples companies are the bread and butter of the dividend growth philosophy. The biggest reason for that is the consistency in their operations. In general they have rather inelastic demand compared to other sectors of the economy and for the companies with strong brands they have excellent pricing power. You might put off the purchase of a new car if the economy isn't firing on all cylinders but are you really going to stop eating or bathing?
PepsiCo (NYSE:PEP) is a fine example of an excellent consumer staple company with brand recognition, pricing power and even better growth. Forbes even recognized PepsiCo as the 29th Most Valuable Brand earlier this year and I expect PepsiCo to continue moving forward.
Historically, PepsiCo has been a wonderful investment with 43 consecutive years of dividend growth. Every dollar you invested 10 years ago has turned into $2.26 today. Every dollar invested 20 years ago has turned into $6.31 today and every dollar invested 30 years ago has turned into $55.94 today. That's an impressive record and I'm glad to call myself an owner (too bad my shares weren't purchased 30 years ago though).
Continue reading the PepsiCo quick analysis on Seeking Alpha.
For more detailed analyses check out my Stock Analysis page.
Image source
- Church & Dwight Co Inc.: Dividends Will Satisfy, Total Returns Look Dirty
One of my goals for the year was to increase my exposure to consumer staples companies in my portfolio. Consumer staples tend to have less fluctuations in their operations compared to other sectors of the economy. They also typically have pricing power...
- The Coca-cola Company Is Priced For Near Double Digit Returns
I love the consumer staples companies and want to have a bulk of my portfolio tied to their success. Consumer staples tend to have less fluctuation in their operations compared to other sectors simply because their provide consumable items that consumers...
- After The Run Up There's Still Double Digit Return Potential For Johnson & Johnson
When you think of some of the greatest companies in the world one name that is sure to come up is Johnson & Johnson (NYSE:JNJ). What's not to like about a company that has earned investors 8.0% annualized total returns over the last decade, 10.8%...
- Building An Empire With Pepsico Inc.
Earlier this month, PepsiCo Inc. (NYSE:PEP) announced Q2 earnings which they knocked out of the park with a beat on both the top and bottom line. PepsiCo has 22 different brands that generate over a billion dollars in annual revenue. Even better is that...
- Recent Buy
Well I just couldn't help myself this past Friday and made another purchase. It wasn't that long ago that I had doubled up my position in PepsiCo, February 14th to be exact but the price continued to decline so I added some more. I was fairly...