PepsiCo: A Dividend King at a Discount – Time to Buy?PepsiCo, Inc. (PEP)
- Sector: Consumer Defensive
- What It Does: Produces beverages and snacks, like Pepsi, Frito-Lay, and Quaker products.
Fundamental metrics
- Dividend Yield: ~3.5%
- Payout Ratio: 67.8%
- 5-Year Dividend Growth Rate: 7.2%
- Debt-to-Equity Ratio: 2.05
- Return on Equity (ROE): 50.8%
- Price-to-Earnings (P/E) Ratio: 18.9
- Price-to-Book (P/B) Ratio: 11.6
- Analyst Average Price Target: $167.00
- Consecutive Years of Dividend Increases: 53
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Technical Factors
The stock is currently experiencing its largest correction since the COVID flash crash, with the last major downturn occurring during the 2008 financial crisis. In such a rare scenario, it's worth considering adding one of the top Dividend Kings to your portfolio.
These companies, with a track record of increasing dividends for 50 consecutive years, tend to be financially stable and reliable, making them an attractive option during market corrections. Their consistent dividend payouts offer a solid income stream, providing a level of security in uncertain times.
Criteria:
- Mid-round number at $150, acting as a psychological level
- Channel projection from the top, aligning with the price structure
- Equal waves from the top, suggesting symmetry in the correction
- Previous resistance levels turning into support, reinforcing the zone
- A key trendline inside the marked box, the last missing touch
The price has already met most of these criteria, except for the trendline, and it has rejected upwards twice from this zone. That’s why this level presents a solid long-term opportunity to consider an entry from current levels.
Make sure to conduct your own fundamental research to ensure the investment aligns with your investment thesis. While I can provide a technical "green light," it’s crucial to confirm that it also fits with the underlying fundamentals.
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