PepsiCo: A Dividend And Defensive Play


  • PepsiCo has always stood strong against all market headwinds and outperformed the index in any turmoil.
  • The company is a financially sound, defensive, and an ever-rising dividend-paying name with the expectation of providing an almost 3% dividend yield in the coming years.
  • It has recently launched innovative products – Pepsi-Zero Sugar and Starry – in the beverage segment.
  • From my analysis of the PEP stock using four different valuation models, I arrive at an intrinsic value of $181, which implies a 7% upside to current share price.
  • I believe PepsiCo is a must-have stock in every dividend-focused portfolio, ETF, and mutual fund.

Can and glass of Pepsi cola

Fotoatelie/iStock Editorial via Getty Images

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Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in PEP over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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