By J. Royden Ward, Editor of Cabot Benjamin Graham Value Letter
From Cabot Wealth Advisory 10/21/10 Sign up for free Cabot Wealth Advisory e-newsletter
PepsiCo (PEP) is a global leader in the soft drink and snack food industries. The company is expanding in international markets and focusing on health and wellness beverages and foods. Annual revenues, earnings and dividends increased 8%, 10% and 12% respectively during the past 10 years.
We expect Pepsi to increase sales, earnings, and dividends by 10% to 12% during the next five years. New products and further expansion into emerging markets will spur future business.
The stock is reasonably priced at 15.0 times next 12-month EPS. Dividends have been paid since 1952 and currently provide a yield of 2.9%.
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J. Royden Ward
Editor of Cabot Benjamin Graham Value Letter
A lifelong investment professional, J. Royden Ward applies his 40 years of investment research, portfolio management, writing and publishing experience to his role as analyst and editor of Cabot Benjamin Graham Value Letter, which is directed to long-term investors seeking a guide to profitable value investing based on the time-tested systems originally developed by Benjamin Graham, the Father of Value Investing. A second-generation disciple of Benjamin Graham, Roy in 1969 pioneered the development of a computerized model that applied the formulas developed by Graham using a unique ranking system. Today, Roy applies his system to two models in the Value Letter.
700 Anderson Hill Road
Purchase, New York 10577
|Index Membership: S&P 100, S&P 500, S&P 1500 Super Comp |
Sector: Consumer Goods
Industry: Processed & Packaged Goods
Full Time Employees: 203,000