Summary of Forget Coca-Cola: These Unstoppable Dividend Stocks Are Better Buys

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    Coca-Cola: A Great Company but Expensive Stock

    Coca-Cola is one of the most well-known brands globally, and its success is evident from its Dividend King status with over six decades of annual dividend increases. However, the stock has become expensive, with its price-to-sales (P/S) and price-to-earnings (P/E) ratios slightly above their five-year averages.

    • Revenue has grown around 7.5% annually over the past five years.
    • Annualized earnings growth over the same period was over 10%.
    • The 20% stock price increase in the past 12 months may deter value-conscious investors.

    PepsiCo: A Diversified Consumer Staples Company

    PepsiCo, like Coca-Cola, is a well-known brand and a strong player in the beverage space. However, it has diversified into snacks and packaged foods, making it an attractive option for investors seeking diversification in the consumer staples sector.

    • PepsiCo is a Dividend King, with over 50 years of annual dividend increases.
    • While its earnings have been lower over the past five years, its dividend yield at 3% is higher than Coca-Cola's.
    • PepsiCo's P/S and P/E ratios are both below their five-year averages, making it a potential value play.

    Archer-Daniels-Midland: A Dividend Contender in the Stock Market

    Archer-Daniels-Midland (ADM) is a different kind of consumer staples company, supplying oilseeds, corn, and wheat to other food product manufacturers. While not yet a Dividend King, it has a strong dividend history with 49 annual dividend increases.

    • ADM's dividend yield of 3.3% is higher than Coca-Cola's and PepsiCo's.
    • The stock has fallen around 25% over the past year, potentially offering a buying opportunity.
    • ADM's P/S and P/E ratios are below their five-year averages, indicating a potential value play.

    Why Consider PepsiCo and ADM Over Coca-Cola?

    While Coca-Cola is a great company, its stock is currently expensive. PepsiCo and ADM offer attractive dividend yields, lower valuations, and the potential for long-term growth in the consumer staples and dividend stock markets.

    • PepsiCo's diversification into snacks and packaged foods provides a competitive edge.
    • ADM's position as a supplier to food manufacturers could benefit from changing consumer trends.
    • Both stocks have strong dividend histories and are currently trading at more attractive valuations than Coca-Cola.

    Key Takeaways for Stock Market Investors

    For investors seeking value and income in the stock market, PepsiCo and Archer-Daniels-Midland could be better buys than Coca-Cola, given their lower valuations, higher dividend yields, and potential for long-term growth in the consumer staples sector.

    • Coca-Cola is a great company but may be overvalued at the moment.
    • PepsiCo offers diversification into snacks and packaged foods, along with a strong dividend history.
    • ADM's position as a supplier to food manufacturers could benefit from changing consumer trends.
    • Both PepsiCo and ADM have attractive dividend yields and lower valuations than Coca-Cola.

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