They require massive amounts of water for multiple uses including cooling, processes, cleaning, employee sanitation, steam generation and, in some cases, to produce their products. Within the past week, two corporations in two different sectors, Ford and PepsiCohave committed to drastically reducing their water use in manufacturing. Ford, which has set a long-term goal to use zero potable water in manufacturing, plans to reduce its water use by nearly three-fourths by
PEP manufactures, markets, and sells various foods, snacks, and carbonated and non-carbonated beverages worldwide. The company operates in four divisions: The company is a dividend championwhich has increased distributions for 42 years in a row.
The most recent dividend increase was in Maywhen the Board of Directors approved a Over the past decade, this dividend growth stock has delivered an annualized total return of 6.
The company has managed to deliver 7. Share buybacks have resulted in the decrease in outstanding shares from 1, million in to 1, million in A history of consistent share repurchases is helpful, because it shows that the company is willing to help out long-term holders of stock with increased proportional share of earnings and the business over time.
PepsiCo has a wide moatdue to strong recognizable brands it owns, scale of operations, relationships with retailers and having a distribution network of bottlers that will take billions of dollars to create and replicate. Because of the consumer affinity for branded snacks and beverages that PepsiCo makes, they are less likely to switch to a cheaper product.
Hence, PepsiCo is part of a sort of unregulated monopoly, which has pricing power. Future growth in earnings will come from international expansion, particularly in emerging markets. The number of servings that consumers abroad consume is much lower than that in North America, which is why I believe there will be years of growth ahead.
In addition, I like the fact that the company sells not only beverages, but snacks as well. As an investor, I like to be diversified; hence, I like it when the companies I own are diversified in products and geography. In addition, it is estimated that the company achieves close to a billion in synergies by operating both a beverage and a snack business.
Earnings can also increase through organic growth for those snacks and beverages, and price increases to offset cost pressures. Strategic cost initiatives to streamline operations, increase productivity and reduce redundancies are another tool to increase shareholder earnings. PepsiCo has also focused on fast growing non-carbonated soft drinks.
Future earnings growth could also come from synergies associated with the acquisitions of its bottlers, streamlining of operations and cost cutting. Earnings growth could also come from other strategic acquisitions, as well as product innovations in health and wellness food and beverage section.
The annual dividend payment has increased by If we check the dividend history, going as far back aswe could see that PepsiCO has actually managed to double dividends every five years on average.
A lower payout is always a plus, since it leaves room for consistent dividend growth minimizing the impact of short-term fluctuations in earnings. The return on equity increased from The decline was caused by the acquisition of Pepsi Bottling interests in North America, which require more capital than your regular soda syrup.
I generally like seeing a high return on equity, which is also relatively stable over time. Currently, the company is close to overvalued as it sells for It is slightly more expensive than Coca-Cola, which sells for 19 times forward earnings and has the same yield.
The pure play on North American soda is Dr. Pepper Snapple is cheaper at 17 times forward earnings and a current yield of 2. I like PepsiCo, but it is selling at the highest point I would be willing to put money at. As a result, I would likely not put money there, unless valuation gets better or unless I run out of other ideas.
However, I do like PepsiCo, and find it to be one of the quality dividend paying cornerstones of my dividend portfolio. Thus, I plan on holding on to this dividend machine, and eagerly wait for drops in the stock price.Coca-Cola Co.
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Calculations: Coca-Cola Ma x L Ma Source(s) of Error: 1) The solutions could have been contaminated which could have affected our measurements. 2) The Coca-Cola and the Pepsi graphs were very similar which can cause flaws in calculating the molarity and analysis of the graphs.
However, around the world, the company continues to push their products to addict children where that pressure does not exist. To Coke executives and board members, profits take precedence over morality, ethics and the well-being of children.
Coke's Crimes in India Overexploitation and pollution of water sources in India. Of the countries where Coca-Cola is sold, India reportedly has the fastest-growing market, but the adverse environmental impacts of its operations there have subjected the parent company and its local bottlers to a firestorm of criticism and protest.
Coca-Cola SWOT Analysis - Coca-Cola SWOT Analysis SWOT stands for Strengths Weakness Opportunities Threats. SWOT analysis is a technique much used in many general management as well as marketing scenarios.