Any Pepsi Holders?

MichealKnight

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It's one of my cores. Obviously lackluster.

Any Pepsi holders and what is your current opinion?
 
I am not a PEP holder, but I do have an opinion. :)

This is not a growth stock, looks like it had average annual growth rate of 7.2% over the past 5 years and projected to grow an average annual rate of 8.9% over the next 5 years.

So, you're in it for the dividend, which is about 3.25% annual rate. Not too bad. But for total return you would be better off in an S&P500 index fund.

It depends on what you are looking for in returns and how much risk you want to take.

Me? I'm a bit more aggressive so I would sell some of the PEP stock and buy Celsius Holdings, CELH. Celsius is one of the best growth stocks of the past 5 years. They are in a partnership with Pepsi to bring the product international. This international effort started late last year with Mexico and Canada, and continues this year in Europe. Stock price has gone from $1.50 to $95 in the past 5 years. Analysts expect it to grow at an annual rate of 32.5% over the next 5 years.

Right now it's in a bit of a dip. This is a volatile stock but the long term prognosis is great, IMO. I got in at $54 in January. Bought some more at $83 when it dipped from $95 to low 80's in April.
 
I only hold PEP as part of my S&P500 funds, and I'm not sure why you'd want to be "overweight" in it by holding more. Unless, perhaps, you have a personal connection to it (former employee?) or have reason to think it will outperform its peers for some reason.
 
...

Me? I'm a bit more aggressive so I would sell some of the PEP stock and buy Celsius Holdings, CELH. Celsius is one of the best growth stocks of the past 5 years. They are in a partnership with Pepsi to bring the product international. This international effort started late last year with Mexico and Canada, and continues this year in Europe. Stock price has gone from $1.50 to $95 in the past 5 years. Analysts expect it to grow at an annual rate of 32.5% over the next 5 years.

Right now it's in a bit of a dip. This is a volatile stock but the long term prognosis is great, IMO. I got in at $54 in January. Bought some more at $83 when it dipped from $95 to low 80's in April.

Currently CELH is ~ $66.50 .

OP - Ask yourself why are you holding PEP as a core holding ?

Why not diversify more, by holding the S&P 500 (as example)
 
Coke has greater world-wide brand recognition?
 
Coke has greater world-wide brand recognition?

KO pays a 3.0% dividend.

It had average annual growth rate of 7.0% over the past 5 years and projected to grow an average annual rate of 6.0% over the next 5 years.

Between Pepsi and Coke, Pepsi is the better play (but still unremarkable.)
 
You'd think I would own PEP as much Diet Pepsi as I drink, but only in my mutual funds. YMMV
 
The WSJ did an article on soft drinks June 1 and included this graph. Pepsi is losing share.

If they can turn that around it might be a buying opportunity. If not, it may go down more.
 

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We’ve held PepsiCo stock for years. It’s a solid company that pays a good dividend that grows each year. Its dividend increases typically beat inflation.
It’s not one of our largest holdings, but it’s a core holding. We’ll keep it unless the fundamentals deteriorate.
 
Coke has greater world-wide brand recognition?
And taught the world to sing in perfect harmony?

SCHD holds both in the top ten, so I sing out of both sides of my mouth.
:)
 
Inherited some and have kept it this far. It’s not a huge piece of my holdings.
 
I have never had Dr Pepper, and cannot because of that name - that does not sound at all like a refreshment.
 
I have never had Dr Pepper, and cannot because of that name - that does not sound at all like a refreshment.

I had diet Dr. Pepper a few times years ago. When I drank diet soda, my rankings were diet Ginger Ale, Diet Coke, diet Dr. Pepper, and then diet Pepsi. (Recently, the carbonated beverage of choice is LaCroix.) When I was a teenager Tab was popular. Pepsi also makes snack foods, but those are no longer on the menu for me.

I have Pepsi on a watch list, but never pulled the trigger. (I do hold some SCHD as noted in #10 about).
 
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And taught the world to sing in perfect harmony?

SCHD holds both in the top ten, so I sing out of both sides of my mouth.
:)
Thanks everyone for the replies and thoughts. I'll certainly look into Celsius also. "Perfect Harmony" - ouch that tugs the heart a bit :) I admit I actually pull that commercial up on YouTube once in a blue moon and man, I lament how the advertising now is different----I mute it 100% of the time.

Pepsi to me was give or take, a 3% dividend, possibly tax advantaged (0-15%) and what seems to be a habit of increasing dividends well past inflation. As someone who needs an average nominal return on risk assets of 6-7% while not taking on too much risk, PEP appealed to me.

I built the position over time so some of the shares are in the red. Methinks I'll sell any lots that are in red and it won't cause a tax event and perhaps redeploy the funds elsewhere. One of my other "steady eddies" was MCD - I unloaded 50% of that in the 290s some months back in that I was worried that the days of huge price hikes for many of these companies is over.

On a more cheery note. One of my tiniest positions is NVDA and I got in very late other than QQQ. Brilliant huh.
 
Thanks everyone for the replies and thoughts. I'll certainly look into Celsius also. "Perfect Harmony" - ouch that tugs the heart a bit :) I admit I actually pull that commercial up on YouTube once in a blue moon and man, I lament how the advertising now is different----I mute it 100% of the time.

Pepsi to me was give or take, a 3% dividend, possibly tax advantaged (0-15%) and what seems to be a habit of increasing dividends well past inflation. As someone who needs an average nominal return on risk assets of 6-7% while not taking on too much risk, PEP appealed to me.

I built the position over time so some of the shares are in the red. Methinks I'll sell any lots that are in red and it won't cause a tax event and perhaps redeploy the funds elsewhere. One of my other "steady eddies" was MCD - I unloaded 50% of that in the 290s some months back in that I was worried that the days of huge price hikes for many of these companies is over.

On a more cheery note. One of my tiniest positions is NVDA and I got in very late other than QQQ. Brilliant huh.
All this is why I've steered clear of individual stocks and stayed with mutual funds. I guess I have no guts and definitely no ability to pick winners. Only individual stock I own is my old Megacorp which is tying to make me rich right now. To show you how bad an investor I am (in picking stocks) I've sold most of my stock in the company over the years. What little I have left is going gang busters. Too bad I didn't keep all of it - but, as I said, I'm a lousy investor. YMMV
 
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