Is PepsiCo An Attractive Dividend Stock?
By Dividend Growth Investor on March 13, 2009 | More Posts By Dividend Growth Investor | Author’s Website PepsiCo, Inc. (PEP) manufactures, markets, and sells various snacks, carbonated and non-carbonated beverages, and foods worldwide. PepsiCo is a major component of the S&P 500 (^GSPC), Dow Industrials (^DJI) and the Dividend Aristocrats Indexes. PepsiCo has been consistently increasing its dividends for 36 consecutive years. From the end of 1998 up until December 2008 this dividend growth stock has delivered a 4.70% annual average total return to its shareholders. At the same time company has managed to deliver a 9.90% average annual increase in its EPS since 1999. The ROE has remained largely between 31% and 38%, with the exception of 2004, when it fell to as low as 22%. Annual dividend payments have increased by an average of 13.50% annually since 1999, which is much higher than the growth in EPS. Analysts are expecting slight increase in EPS for 2009 compared to 2008, given the s
