Pepsico is testing critical support around $150~$152. If this is breached then we are looking at hello $130. $PEP pays $1.355 per quarter or $5.42 annual dividend and increases dividend every year at healthy clip. I assume under reasonable scenarios they can earn $8~9 B in net income, and their current dividend commitment comes to $7.5 B. $PEP is not a big buyback company, they may buy about 1 million shares every quarter…
The company had a productivity pump recently that pushed net income from $8 to $10 B range. There are headwinds, and a potential economic weakness, not clear how the tariffs will impact, and then GLP. So there are some issues, but Pepsico is a great snack and soft drink brand.
At $130, the dividend yield will come to 4.15%, around $110, the dividend yield gets to 5%. At that dividend yield, I would like to own this stock for a long-term.
