This Dividend Stock Yielding Quadruple the S&P 500 Looks Like a Buy Right Now
Key PointsPepsiCo has been facing some challenges, but it's still growing.
PepsiCo (PEP) offers an enticing dividend yield of 4.4%, significantly higher than the S&P 500's 1.1%. This growth-oriented company saw a 3% increase in its third-quarter revenue, with an annual dividend per share rising from $3.22 in 2017 to $5.92. PepsiCo's portfolio includes popular snacks and drinks like Lay's, Doritos, Gatorade, and Mountain Dew, appealing to consumers in both good and bad economies.
The company recently appears attractively priced, boasting a forward P/E ratio of 15.5 and a price-to-sales ratio of 1.86, both below their five-year averages. While PepsiCo faced challenges due to shifting consumer preferences, it has addressed these issues by lowering prices and introducing healthier options. This commitment to change positions PepsiCo well for the future, making it an appealing option for investors seeking reliable income and potential growth.
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