Portfolio New Addition: PepsiCo

Another company added to my portfolio is PepsiCo, Inc. (NYSE: PEP). A food and beverage company that have their presence in over 200 countries and territories. A look at the rationale behind investing in PepsiCo and a reminder to why I should continue holding on to it.

Products of PepsiCo

Pepsico logo | Investor MonkeyPepsiCo, Inc. (NYSE: PEP) is a global food and beverage company. Manufacturing, marketing, distributing and selling a variety of beverage, food and snacks to more than 200 countries and territories. The company operates through six segments:  Frito-Lay North America, Quaker Foods North America, Latin America Foods, which includes its food and snack businesses in Latin America; PepsiCo Americas Beverages, which includes its North American and Latin American beverage businesses; PepsiCo Europe (Europe), which includes beverage, food and snack businesses in Europe and South Africa, and PepsiCo Asia, Middle East and Africa (AMEA), which includes beverage, food and snack businesses in AMEA, excluding South Africa.

Rationale for Addition to Portfolio

PepsiCo have grown their dividends at 7.4%, on average, over the last five years. Although their Earnings per Share (EPS) growth was not doing as well, average growth of 1.3% over the last five years, the payout ratio of 59.3% gives me the assurance that they will still be able to grow their dividends, at least over the next few years.

If their EPS does not improve, will have to relook at this investment.

Was contemplating between buying PepsiCo or its competitor, The Coca-Cola Co. (KO). Although many of my friends were telling me to buy Coke because it is a better known company and they have their presence felt around the world better. In the end I decided to follow my own research.

Transaction Details

Date September 16, 2015
Shares 5
Price 92.35
Yield (TTM)* 2.88%
* as at time of purchase

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