PepsiCo: An Undervalued Dividend Star


  • PepsiCo continues to generate robust growth thanks to its diverse portfolio and efficient management.
  • Cost-cutting initiatives of management will benefit earnings and ultimately increase returns to shareholders.
  • Company’s shares are included in the S&P Dividend Aristocrat Index with consistent dividends paid during last half of century.
  • DDM suggests the stock is 14% undervalued.

PepsiCo To Lay Off Hundreds Of White Collar Workers

Brandon Bell/Getty Images News

Investment thesis

PepsiCo (NASDAQ:PEP) is a dividend aristocrat which has a strong track record of delivering consistent growth thanks to its strong brand recognition and diverse products portfolio. Management has proved themselves of being able

Company's most famous brands


PepsiCo's segments disaggregation

Author’s calculations

Latest financials of PepsiCo


PEP revenue by-segment dynamics

Author’s calculations

PEP Profitability Grade

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PEP dividend history

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PEP dividend growth quant ratings

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PepsiCo DDM valuation

Author’s calculations

Data by YCharts

PEP dividend grade


Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within 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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