PepsiCo, Inc. is a multinational American food and beverage corporation that is one of the biggest in the world. The corporation controls 22 brands, including Pepsi, Lays, and Gatorade, which produce more than $1 billion in revenue annually.
Our guide will show you how to open a brokerage account and how to buy PepsiCo stock.
Quick History of PepsiCo
PepsiCo, Inc. is a worldwide food and beverage company founded in Harrison, New York. Caleb Bradham developed the soft drink Pepsi, and the corporation was founded in Delaware in 1919.
The Pepsi-Cola Company and Frito-Lay, Inc. merged to establish PepsiCo in 1965. Pepsico owns businesses all over the world, and its goods are sold in hundreds of countries.
PepsiCo is the world’s second-largest food and beverage company, after only Nestlé. Since the early 2000s, its company has expanded to encompass a larger range of products, such as meals, snacks, and drinks.
PepsiCo’s Frito-Lay and Quaker Oats brands dominate the snack food sector in the United States and the company’s current product lines encompass several hundred brands on a global scale.
The Good and the Bad of PepsiCo Stock
Owning stock in a firm has various advantages. Here are some of the benefits and drawbacks of holding PepsiCo stock.
Pros of Owning PepsiCo Stock
- PepsiCo has a diverse selection of drinks and snack items that sell all over the world. Quaker Oats, Gatorade, Frito-Lay, and Doritos are among the huge brands that most people will continue to purchase for years to come.
- PepsiCo employs a complex distribution network known as direct store delivery. It aids in cost reduction as well as adapting to changing customer needs.
Cons of Owning PepsiCo Stock
- Pepsi continues to struggle in terms of volume. Coca-Cola has been outselling Pepsi in recent years.
- Pepsi is dealing with rising inflation. Purchasing crucial supplies is becoming increasingly costly.
Outlook for PepsiCo Stock
PepsiCo’s brand portfolio distinguishes itself from its competition, Coca-Cola. The company’s versatility and domination in the beverage and snack business gives them a significant competitive edge.
Pepsi’s fiscal first-quarter net income was $1.71 billion, or $1.24 per share, up from $1.34 billion a year ago. PepsiCo stock is thought to be properly valued at its current price of $147.75 per share and market worth of $204.14 billion.
PepsiCo announced a 5% rise in its quarterly dividend to $1.075 per share, or $4.30 for the complete year on May 4. Revenue during the first quarter of 2021 was $14.8 billion, with a net income of $1.7 billion.
Steps to Buy PepsiCo Stock
To buy PepsiCo stock, you must first create a brokerage account, then a trading account, deposit funds, and then start buying shares.
Step 1: Select a Brokerage
In order to purchase PepsiCo stocks through a brokerage, the brokerage must have access to the NASDAQ. You can also purchase their stock directly, online, through Computershare’s the Plan.
The Plan by PepsiCo allows purchases of PepsiCo stock and also offers a dividend reinvestment and sale of share plans. Whether purchasing PepsiCo stock through a brokerage or directly, make sure all accounts are set up correctly so that you are able to purchase when the price is right.
Step 2: Open the Trading Account
The next step is to make sure you have a trading account. After you’ve decided which brokerage is best for you, you’ll need to open an account with them to make purchases of stock.
This account will be for posting transactions and stock trading.
Step 3: Deposit Funds Into the Account
Without funds in your account, you won’t be able to purchase shares. So after you’ve linked an approved method of payment to your account, you’ll be able to deposit funds, to purchase PepsiCo shares.
Once your account is officially activate, you must specify how many shares of PepsiCo stock you wish to acquire.
Step 4: Search for the PepsiCo Ticker Symbol (PEP)
Stocks can be found either through their name or ticker symbol. Find PepsiCo stock using the name or ticker symbol, PepsiCo or PEP.
Be sure to conduct some research, using the ticker, before deciding whether this is a good investment for you.
Step 5: Purchase PepsiCo Stock
Brokers will have a “deal ticket” at the bottom of each page where you may place your order. You will enter the symbol and the number of shares you wish to purchase on the broker’s order form.
You can buy as many shares as you like with a market order, or you can use a limit order to postpone the purchase until the stock reaches a particular price.
Is PepsiCo a Good Buy?
The food and beverage conglomerate has a slew of brands that it has continuously grown over time. Pepsi is the company’s signature product, and you’ll see it being enjoyed across the globe.
The firm plans to stay competitive and invest in its digital capabilities in order to strengthen and expand its e-commerce presence. PepsiCo continues to be flexible and opportunistic in its acquisitions of complementary businesses toward its product line.
Investors should keep in mind that PepsiCo’s dividend has been continuously increasing throughout the years. The company’s recent additions should offer more opportunities for future expansion, making its stock an appealing investment.
If you would like to start investing in stocks or want to know what the best investment option is for you, then you should consider contacting a financial advisor.