PepsiCo (NYSE:PEP)

PepsiCo is a American multinational active in the agri-food sector. It is of course known for its famous soda, Pepsi, but it also markets other brands such as Gatorade, Lay's, Doritos, Lipton, 7 Up, Benenuts... The company was created in 1965, by the merger of Pepsi-Cola Company and Frito-Lay. In 1997 it separated from Taco Bell, KFC and Pizza Hut, creating the holding company Yum! with which it maintains a lifelong contract. The multinational is headed by Indra Nooyi who is considered one of the most powerful women in the world.

Pepsi is of course Coca-Cola's historical competitor. From a taste perspective, each brand has its fans and detractors. From a more interesting perspective, dividends, we give a slight plus to KO, although the two companies are quite close. PEP offers a decent long-term yield of 2.75%, but lower than that of its competitor, which it compensates for with slightly higher dividend growth, at 9.66%. The company has increased its distributions for 39 consecutive years, which gives a good idea of its ability to weather the various crises.

The most notable difference between these two competitors comes from the distribution ratio, which is notably higher at Pepsico, at 49.03%. We nevertheless remain in quite interesting proportions, since with such figures PEP maintains a ample room to increase dividends, buy back its own shares, or simply cope with a difficult period. As for the volatility of the action in CHF, it is very reasonable, at 10.06%, which is less than the average of our portfolio.

The title has beaten the market since the early 80s since we arrive at a cumulative performance of just over 5,000%. What is interesting is that the P/E ratio has been falling since 1997, despite rising prices.

Our algorithm considers PEP to be an interesting stock to monitor or keep if we already have it in our portfolio.