Acquiring PepsiCo Shares for Enhanced Passive Revenue due to Personal Beverage Company Preference
Acquiring PepsiCo Shares for Enhanced Passive Revenue due to Personal Beverage Company Preference
Looking to beef up my passive income portfolio, I recently snagged some shares of the legendary beverage and snack titan, PepsiCo (PEP). Let me spill the beans on why this high-yield dividend stock has me all jazzed up about quenching my income thirst.
Dividend Dynamo
With an eye-popping dividend yield of approximately 3.8%, PepsiCo's payout far surpasses its typical historical range of 2.5% to 3% from the past decade. Its yield handily outpaces that of the S&P 500 (1.2%), delivering more income on every dollar invested.
As a geezer in the club of Dividend Kings – this elite squad has been doling out dividends consecutively since 1965 – PepsiCo has more than earned its stripes. In fact, the company has boosted its dividend a whopping 52 years in a row while yielding a solid 7.7% compound annual growth rate since 2010.
PepsiCo cups its financialbt Coffers well. It generates sheaves of cash flow and boasts a sturdy balance sheet. Last year, it shelled out more than $7 billion in dividends and gobbled up $1 billion in repurchased shares. It wrapped up the third quarter with a cushy $8 billion cash hoard and a modest debt-to-equity ratio, making it a bond-rater's delight with an A+/A1 rating.
Revenue Rejuvenation
PepsiCo projects that revenue and earnings will continue their growth spurt in the upcoming years, which means the distribution of those juicy dividends should keep flowing like a sparkling mountain stream.
The most recent fiscal year saw the company on track for low-single-digit organic revenue growth and an impressive 8% leap in earnings per share, hitting its long-term ambitions of 4% to 6% organic revenue growth and high-single-digit EPS growth.
With the global beverage and convenient food bazaar worth an eye-popping $1.2 trillion, PepsiCo has a veritable buffet of growth opportunities. Sitting pretty with less than $100 billion in earnings, the company has a veritable pot of gold at the end of its rainbow.
To tap into those growth opportunities, the food behemoth has been stretching its legs in recent years. It's added its paws to the energy drink market, reduced sugar and sodium numbers in its snacks and drinks, expanded its do-good offerings with baked goods and whole grains, and launched an admirable assortment of portion control packaging and tantalizing new flavors. It's also been on a global expansion spree, boosting international sales twofold.
Dividend Delights
Some ups and downs have plagued PepsiCo's stock lately (it's plummeted 20% from its 52-week high), but with its robust long-term growth outlook and continued push to up its healthy offerings game, the sell-off has made PepsiCo's succulent dividend an irresistible offer. I believe this burly income stream will happily supply me with a steady increase in tasty shareholder payouts for the years to come.
Given the text, here are two sentences that contain the words 'investing', 'finance', and 'money':
- With the financial rewards of its dividend policy in mind, I began investigating potential investments in companies known for their reliable dividend payouts.
- By allocating a portion of my investing portfolio to high-yield dividend stocks like PepsiCo, I'm able to generate a consistent stream of income from my investments.