PepsiCo: Too Pricey?
In February of this year the Board of Directors approved an increase to the quarterly dividend of 7.1% to $0.7525. PepsiCo is firmly implanted as a Dividend Champion and has a 44 year streak of growing dividends to investors.
Every $1 invested in PepsiCo 10 years ago has compounded at a 8.6% rate and is now worth $2.28. Every $1 invested 20 years ago is worth $5.27 good for 8.7% annual growth. Stretch it back to an investment 30 years ago and it's compounded at a 13.3% rate and is now worth $42.85.
I initiated a position in the company in late 2013 and since that time I've received 3 dividend increases growing my income from those first shares by 32.6%. Through the closing price from March 28th, $100.98, I've earned a 14.0% internal rate of return on my PepsiCo investment. So I'm more than pleased with the results I've had with investing in PepsiCo.
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