Potential FKA Alert: $PEP Pepsico

Investing Strategies Falling Knives
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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.

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Keep an eye on this name and some other consumer staples. They are hated by the market and higher interest rates are not helping. I suspect they may go through similar to 2022-tech moment and will get so cheap it will become no-brainer to buy. Just hope you have the courage to buy at that point and sit tight for couple of years.

These are the stocks you want to make sure you get the correct entry and then sit tight for a long time.

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My grocery store has 13 oz party size Lays potato chips priced at $6.50. Store brand other end of the aisle was $3.15. Utz was $3.50. Aldi price is $2.15. Sams $2.95.

I think brand loyalty has its limits.

Plus weight loss drugs may have an impact.

This knife could have a long way to fall.

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