Reasons To Buy Pepsico Stock

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Reasons To Buy Pepsico Stock

Two Reasons To Buy PepsiCo Stock

There are a lot of good stocks in the beverage and snacks category. However, PepsiCo (PEP) is one of those stocks that stand out for all the right reasons.

Analysts think there are two good reasons why you should buy and hold PepsiCo stock for the long term. These reasons are a reliable dividend income and an improved growth rate.

PepsiCo Is Raising Its Dividend Yield For Decades

Every investor likes to get a steady and reliable stream of income. That's where PepsiCo truly shines with its dividend yield of 4.7%. This is quite a good yield when we consider PepsiCo is a blue-chip stock. To put things into perspective, the dividend yield of PepsiCo is almost double that of Coca-Cola.

PepsiCo also has a long history of paying its dividend on time. The company has been raising its dividend yield for almost 54 years now. So, that's one of the strongest reasons for buying PepsiCo stock.

Improved Growth Rate With New Product Launches

PepsiCo has also introduced new products to its portfolio. The company has introduced dye-free Doritos. Another big launch was the prebiotic cola. Both of these products show that PepsiCo is really thinking outside of the box.

These new products are also expected to attract more health-conscious customers. The company think its top-line growth will be 2%-4% this year. This means the pre-share profit growth could be 4%-6%.

Now, some people may think these numbers are nothing extraordinary. But let's not forget the sheer scale of PepsiCo. So, even these numbers are pretty good.

Also, PepsiCo operates in the consumer goods industry, which is slow-moving by its design. Analysts think that PepsiCo could manage to maintain this growth rate for the next few years easily.

So, that's yet another strong reason why you should consider buying PepsiCo stock. Growth like this will translate to solid revenue growth. All of this will trickle down to higher PepsiCo share prices in the next few years.

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