PepsiCo: Is It One Of The Best Dividend Stocks?
The consumer staples sector is highly coveted by many dividend growth investors due to its relatively predictable growth prospects, as well as a willing consumer that views the products as needs rather than wants. The sector also typically strikes the balance between a higher current yield, i.e. more income now, with steady growth that outpaces inflation, i.e. more income later. That's one of the big reasons that consumer staples are one of the highest weighted sectors in my portfolio.
I've owned shares of PepsiCo (PEP) since 2013, and the results have been right on par with what I expected. At that time, I believed a purchase was made in the range of fair value and hte returns have been more than adequate. A year has passed since I last updated my valuation of PepsiCo, so it's time to re-value the business to see what's changed and at what levels a purchase would make sense.