The Dividend Aristocrat has raised its dividend for over 40 consecutive years. A huge portfolio of billion-dollar brands is a major reason for its success
With the potential for a second coronavirus wave, as well as
concerns over a recession amid an unprecedented macroeconomic outlook, many
investors are looking for stocks with a consistent track record of delivering
positive returns. One such stock is PepsiCo Inc. (NASDAQ:PEP).
The company has an outstanding track record of 48 years of
consecutive dividend increases, displaying a resilient business that can
withstand and even keep growing throughout adverse economic conditions.
PepsiCo is a global food and beverage company that generates
around $70 billion in annual sales. The company’s products include well-known
brands like Pepsi, Mountain Dew, Frito-Lay chips, Gatorade, Tropicana orange
juice and Quaker foods. It has 23 invidividual billion-dollar brands, which
each generate $1 billion or more in annual sales.
With a proven strategy of managing its brands, we believe
PepsiCo is a great stock to own for reliable, long-term returns.
Being a consumer staples company, PepsiCo’s sales are way
less volatile than other sectors since households are likely to keep consuming
the company’s products despite economic conditions. Everyday consumables like
Quaker and Lipton are mostly recession-proof. As a result, the company has been
able to grow its earnings consistently. Earnings per share has grown from $3.81
in fiscal 2010 to an estimated $5.64 for 2020. With such consistent
profitability, PepsiCo has keep increasing its capital returns as well.
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