PepsiCo Dividend Stock Analysis

PepsiCo, Inc. (PEP) manufactures, markets, and sells various foods, snacks, and carbonated and non-carbonated beverages worldwide. The company operates in four divisions: PepsiCo Americas Foods (PAF), PepsiCo Americas Beverages (PAB), PepsiCo Europe, and PepsiCo Asia, Middle East and Africa (AMEA). The company is a dividend champion, which has increased distributions for 46 years in a row. 

Between 2007 and 2017, PepsiCo managed to grow its earnings from $3.41/share to $5.11/share. The 2017 figures include a $2.5 billion provisional net tax expense ($1.73 per share) as a result of the U.S. Tax Cuts and Jobs Act (TCJ Act) passed on December 22, 2017. PepsiCo is expected to earn $5.66 per share in 2018 and $5.96 per share in 2019. 

 

Share buybacks have resulted in the decrease in outstanding shares from 1.645 billion in 2007 to 1.44 billion in 2017. A history of consistent share repurchases is helpful, because it shows that the company is willing to help out long-term holders of stock with increased proportional share of earnings and the business over time.

 

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Disclaimer: I am not a licensed investment adviser, and I am not providing you with individual investment advice on this site. Please consult with an investment professional before you invest ...

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