PepsiCo: Cash Flow Headwinds Along With Others Will Likely Continue To Cause Underperformance (Rating Downgrade)


  • PepsiCo’s latest earnings beat expectations, but faced headwinds in the U.S. due to inflation and product recalls.
  • Dividend safety is a concern as cash flows declined, but future free cash flow growth projections remain positive, albeit slower.
  • Valuation appears attractive with potential upside, but downside risks include inflationary pressures will likely continue to negatively impact their financial performance.
  • Free cash flow was negative during Q1, but the most recent dividend increase shows management is confident in their ability to continue paying the dividend.

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PepsiCo (NASDAQ:PEP) has long been one of my favorite dividend stocks. And for obvious reasons. The company has a very long history of paying growing dividends, more than a half of century to be exact. But as







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