PepsiCo, Inc. manufactures, markets, and sells various foods, snacks, and carbonated and non-carbonated beverages worldwide.Popular products include Pepsi, Mountain Dew, Gatorade, Tropicana, Quaker Foods, Lay's Potato Chips, Doritos Tortilla Chips, Cheetos, Rold Gold Pretzels, and SunChips. It is an iconic brand operating virtually worldwide.
PepsiCo, Inc. is a member of the eliteDividend Champion list, increasing its dividend for 38 straight years. Its average dividend growth rate in the last seven years is 17.3% with a payout ratio of under 40%. This is one of the safest and most sustainable dividends in the market.
The fundamentals ofPepsiCo, Inc. are downright exciting:
ROE in the last seven years is 33.4%, nearly three times the average. Likewise, the sustainable growth rate is 19.8%, nearly double the 10% SGR I look for in investments. PepsiCo, Inc. is currently trading at a P/E of 16.2, which is three points below its seven-year average.
When we model PepsiCo, Inc.'s future EPS using these metrics, the results are compelling:
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