Product adjustments should protect their payouts

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Both revenue and earnings for these leading U.S. foodmakers have stayed solid during the pandemic. That supports their dividends, which still look secure. However, they will need to continue adjusting their offerings to satisfy consumer demand for healthier food and to spur their shares. PEPSICO INC. $144 is a hold. The company (Nasdaq symbol PEP; Conservative-Growth Dividend Payer Portfolio, Consumer sector; Shares o/s: 1.4 billion; Market cap: $201.6 billion; Divd. yield: 2.8%; Dividend Sustainability Rating: Above Average; www.pepsico.com) is the world’s second-largest soft-drink maker after Coca-Cola. Its other brands include Frito-Lay snack foods, Gatorade sports drinks, Tropicana fruit juices and Quaker Oats cereals. With its June 2020 payment, PepsiCo raised your quarterly dividend by 7.1%, to $1.0225 a share from $0.955. The company’s new annual rate of $4.09 yields 2.8%. PepsiCo has raised that amount annually for the past 48 years. PepsiCo recently paid $3.85 billion for Rockstar Energy Beverages. Its energy drinks feature high caffeine levels. Partly due to new operations, PepsiCo’s sales in the quarter ended…