Underperforming
PepsiCo is a quite famous stock amongst investors since it is seen as a defensive play, pays a reliable dividend and has a rather low volatility. Over the last decade though Pepsico has underperformed the S&P 500 significantly. While the S&P index rose +200%, the food & beverage giant only did +78%. That’s a big gap!
In my view it’s unattractive to invest in companies that underperformed the market that much. You should rather watch out for stocks that performed better than the broad index, like Microsoft, McDonalds or Infineon, which I wrote about lately.
For me Pepsico, that reported robust numbers just today and is a robust company, still is not an investment I would do at the moment. Maybe if dividend yield was 4% - much better than S&P yield - I would consider an entry.
What do you think about PepsiCo stock?
