Dividend Stock - Pepsi (PEP) 2nd in the beverage industry!

Today, I would like to deal with the first and second place in the beverage industry. I only have Pepsi-Cola (PEP), but I plan to increase the weight of Coca-Cola (KO).

 

Ticker	Market cap	배당률Odds	Dividend Growth Rate (5 years)	Dividend Growth Year
KO	$231B	3.09%	4.25%	58 Years
PEP	$197B	2.80%	7.80%	48 Years

There is not much difference between the market cap of the 1st and 2nd in the industry.

The first reason for choosing Pepsi was to consider the dividend growth rate first.

However, considering the market share of the sector, which is a factor to consider in choosing a dividend stock recently, there is an opinion that Coca-Cola, which is the No. 1 in the industry, should be held.

 

 

-About Company

The company was founded in 1898 and is a global food and beverage company headquartered in Purchasing New York.
The company's brand portfolio includes Fritoray, Gatorade, Pepsi-Cola, Quaker and Tropicana.
The company operates through six sectors.
These are Frito-ay North America (FLNA), Quaker Foods North America (QFNA), North American Beverages (NAB), Latin America, European Sub-Saharan Africa (ESSA), Asia, Middle East and North Africa (AMENA). The FLNA segment includes its branded food and snack businesses in the United States and Canada. The QFNA segment includes the cereal, rice, pasta and other branded food divisions in the United States and Canada. The NAB segment includes its beverage divisions in the US and Canada. The Latin American segment includes the beverage, food and snack business units in Latin America. The ESA segment includes the beverage, food and snack business units in Europe and sub-Saharan Africa. The AMENA segment includes beverage, food and snack companies in Asia, the Middle East and North Africa.

 

Lists of Pepsi-Cola subsidiaries.

As you can see from the Pepsi-Cola stock price below, you can see the upward trend since its inception.

The reason is that it monopolizes rivals one by one through mergers and acquisitions.

There are brands we know often.

It is the same as Coca-Cola.

However, Coca-Cola far outperforms the market share.

	Market share
KO	43%
PEP	24%

 

--Stock chart

Pepsi Cola stock price chart since its inception.

Comparison with SPY for 5 years

In the past five years, SPY has grown 103% and PEP has grown 42%.

It is very disappointing that the stock price is below the market growth rate.

KO, PEP 5 year comparison chart (KO <PEP)

In terms of stock price growth, Pepsi-Cola is showing a more aggressive rise.

The rising power of the second place in the market capitalization is scary.

I liked Coca-Cola more than Pepsi, so I didn't think much about Pepsi.

 

 

 

 

 

 

 

-Financial Statements

It is expected to grow steadily at around $70B in annual sales.

Dividend payments are becoming stable.

Looking at the details of the cash flow statement, the operating margin and net profit growth are somewhat slow to see if the beverage industry is still in a bleeding competition. However, Coca-Cola has a clear advantage as its market share is superior to Pepsi.

 

 

-Dividend details

-Dividend breakdown ㅁ The dividend growth rate for 5 years is better than that of Coca-Cola.

Dividend growth graph over 48 years

Overall Review: PepsiCo pays an annual dividend of $4.09 per share, with a current dividend yield of 2.80%. PepsiCo has been raising its dividends for 49 consecutive years, indicating that the company has a strong commitment to maintaining and increasing its dividends. PepsiCo's dividend payout ratio is 73.96%. This payout rate is below 75% at a healthy and sustainable level. According to earnings estimates, PepsiCo will have a 67.72% dividend payout ratio next year. This indicates that PepsiCo can maintain or increase its dividend.

 

Dividend rate trend over 5 years

Dividend Rate Trend for 5 Years Pepsi-Cola has maintained a dividend rate of around 3%.
As long as the crisis does not come again, buying at the current stock price is a good option.


-Conclusion
1. The payout ratio itself is similar for both Coca-Cola and Pepsi (the ability to pay dividends).
2. Coca-ola, which has a high dividend rate due to a slight difference, can pay dividends without stopping with a steady market share, but Pepsi-Cola is a good choice if you consider the dividend growth rate.