2023 Week 20: PepsiCo Inc (NASDAQ: PEP)

Portfolio Update

The FiveTwenty portfolio received $60.91 in dividends in the past week. APD and GD paid their quarterly dividend during the week.

Past Week Dividend$60.91
Current Quarter Dividend (Q2 2023)$638.86
LifeTime Dividend$10,812.44
Estimated Annual Dividend$9,211.17
Dividend Scorecard

The capital allocation for the week of 05/14/2023 to 05/20/2023 will be used to add to our position in PepsiCo Inc (NASDAQ: PEP).

PEP – Position Update

Since our last check-in on PEP in week 19 of 2023, there have been no new developments. Furthermore, the share price has increased slightly from $194.27 to $196.12.

TTMPrev. Update10-year median
Dividend Streak50 years50 years
Yield2.35%2.37%2.74%
Payout Ratio65.71%165.71%1
P/E27.75127.751
Entry Criteria Scorecard

1 computed using adjusted (core) EPS of $7.00 as of Q1 2023

Q1 2023 earnings report

Did PEP’s latest earnings report raise any warning flags?

We discussed PEP’s Q1 2023 results in our previous update.  Overall, revenue grew 10.2%, core net income increased 15.4%, and core EPS were 16.3% higher than in Q1 2022.

Revenue
(in millions)
Core Net Income
(in millions)
Core EPS
.
Q1 2022$16,200$1,795$1.29
Q1 2023$17,846$2,071$1.50
% Change10.2%15.4%16.3%

Thesis

Why are we adding to our position in PEP?

Our thesis remains unchanged for our previous update. This week’s investment represents our desire to continue to build our position in the company.

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