Most Investors Overlook This. I'm Buying PepsiCo for Its Dividend.
PepsiCo's stock has lagged, but its 54-year dividend growth streak and reasonable valuation have me buying and getting paid to wait.
Overview
I've always kept a close eye on PepsiCo (NASDAQ: PEP), mostly because of its better-than-average dividend yield and its status as a Dividend King, meaning a company that increased its dividend for at least 50 consecutive years.
If you're asking "what is the best dividend stock" to buy right now, PepsiCo is one of the first names worth a good look, especially after its recent sell-off. However, the stock has been battered over the last year, reaching as high as $171 before falling to its current level around $142. Many investors attribute the drop to weaker volume, rising operating costs, and flat earnings growth over the last couple of years.
Details
But several things changed recently, many for the better, and that is enough to make investors take another look at PepsiCo at today's valuation. That brings us to the key question: Is PepsiCo's story pointing to a turnaround, or could it be a value trap, as many fear?
Source
Originally published at www.fool.com.