Any Pepsi Holders?

[MichealKnight]

It's one of my cores. Obviously lackluster.

Any Pepsi holders and what is your current opinion?

 

[Qs Laptop]

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.

 

[Sojourner]

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.

 

[Sunset]

...

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)

 

[target2019]

Coke has greater world-wide brand recognition?

 

[Qs Laptop]

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.)

 

[Koolau]

You'd think I would own PEP as much Diet Pepsi as I drink, but only in my mutual funds. YMMV

 

[MichaelB]

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.

 

[Dash man]

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.

 

[target2019]

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.

 

[Act2]

Inherited some and have kept it this far. It’s not a huge piece of my holdings.

 

[Mr. Tightwad]

In 2009 I bought 550 shares at 56.01.

Still holding.

 

[target2019]

Keurig Dr. Pepper (KDP)?

How Dr Pepper passed Pepsi by marketing around football, flavor innovation

The 140-year-old soda brand has relied on investment, patience and agile marketing to become the number two soft drink in the U.S.

finance.yahoo.com

Maybe a large generational shift is coming for soft drinks?

 

[Koolau]

Keurig Dr. Pepper (KDP)?

How Dr Pepper passed Pepsi by marketing around football, flavor innovation

The 140-year-old soda brand has relied on investment, patience and agile marketing to become the number two soft drink in the U.S.

finance.yahoo.com

Maybe a large generational shift is coming for soft drinks?

That's interesting. I had no idea that Dr. Pepper was particularly popular. Perhaps it's because it's the one soft drink I despise the taste of. YMMV

 

[Aerides]

I have never had Dr Pepper, and cannot because of that name - that does not sound at all like a refreshment.

 

[MarieIG]

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).

 

[MichealKnight]

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.

 

[Koolau]

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

 

[imnontrad]

I have PEP. I heard last week that Dr. Pepper has surpassed Pepsi in sales. I think many younger people are now avoiding all sodas. so I think that PEP will stagnate.

 

[HarveyS]

I was surprised PEP dropped from #2 to Dr. Pepper. I know PEP is more than just carbonated beverage, but the chart MichaelB posted would alarm me if I directly held PEP. (I'm sure I hold some in MF's).

 

[Montecfo]

I own both KDP and PEP, small positions. They have been ok.

You buy these stocks more for defensive characteristics and steady returns, not as high growth vehicles.

Not looking to add to them here.

My large position within the space is Costco which has been stellar.