Investing in PepsiCo
So, is it a good idea to invest in Pepsi? Buying shares in PepsiCo may be quite a profitable business, but it is still necessary to know all the information regarding its progress, income and financial stability, as well as to know on which platforms it is convenient to carry out this operation.
That is why today we will show you everything you need to know about PepsiCo shares and how you can invest in this company through an online broker.
What is PepsiCo?
The Pepsi Cola company originated in 1919, but it was not until 1931 when Charles Guth acquired all the power of the company, including the recipe for the soft drink.
Thanks to pharmacist Guth, Pepsi Cola began to succeed with the new formula of its beverage, in addition to establishing new bottling options, including the 12-ounce bottle, which was sold for only 5 cents, which led to the company’s financial growth.
PepsiCo merged with large companies such as Loft in 1941 and Frito-Lay in 1965. Some time later it acquired three restaurant chains named Pizza Hut in 1977, Taco Bell in 1978 and finally KFC (Kentucky Fried Chicken Corporation) in 1986.
Other well-known companies now owned by PepsiCo include: Seven-Up (1986), Tropicana Juice (1998), Dole (1998) and Quaker (2001). Thanks to all these mergers, products such as: Gatorade, Quaker cereals, Doritos, Lay’s potato chips, Pepsi soft drinks and 7UP stand out.
PepsiCo is recognized as the largest food and beverage company in countries where it already has a headquarters: Russia, the United States, Spain, Ecuador, Colombia, Chile, Mexico, El Salvador, Paraguay, Argentina and Uruguay. However, its products have traveled all over the world.
Currently we can see PepsiCo stock market being one of the most stable and resistant to economic downturns. It has also innovated in the production of new food items that are low in calories and fatty substances, and has worked on marketing, using thousands of strategies to its advantage to reach its consumers.
Why buy PepsiCo stock?
There are several reasons why buying PepsiCo shares is a good option. One of them is its incredible source of income and the stability with which the company has maintained itself despite the economic crisis that was fomented by a 40% loss in the wake of COVID-19 during the month of March 2020.
However, it was able to recover thanks to a significant increase in snacks, fried foods and beverages, earning PepsiCo stocks a total of US$1,646 million in net income and reducing its percentage decline to 19%.
PepsiCo Nasdaq presents extremely interesting charts and this is due to the constant production and development of activities in the financial and food sector. So much so that the PepsiCo share price reaches $145.52 and continues to rise.
Although the price of PepsiCo stock is somewhat lower than other companies, this is definitely an advantage and is ideal for buying in the month of December 2020 because of the minimal risk involved.
And if there is one thing to be sure of, it is that when PepsiCo’s share price rises, profits will increase to the benefit of investors.
Now let’s look at the strengths and weaknesses you should consider when buying a PepsiCo stock.
Buying PepsiCo Shares: Advantages
- Recognition and good use of marketing. Over the years, PepsiCo has gained popularity and fame thanks to the variety of products they offer. In addition, they have attracted the attention of their followers for their incredible advertising campaigns that are attractive and even funny.
- Partnerships. The main increase in its economy has been thanks to mergers with various food product companies, restaurant chains and supermarkets. Also, PepsiCo has managed to partner with Motorola and Unilever, in order to expand its products and offer extra benefits to the loyal consumers of these brands.
- Low stock price. Investors state that PepsiCo’s low stock price is a wonderful buying advantage and is a good choice for a medium-term investment.
- Dividends. By having access to PepsiCo stock, we have the advantage of receiving dividends on a quarterly basis, which means that you will receive your dividends at the end of March, June, September and soon ending December.
Buying PepsiCo Shares: Disadvantages
- Competition. It is no secret that PepsiCo’s potential competition is the Coca Cola company, which also offers as its main product its soft drink and other food products. However, PepsiCo’s stock value is almost three times higher than Coca Cola’s, so it may be one step ahead.
How to buy PepsiCo shares
If you want to know how to invest in PepsiCo by buying its shares, it is important that you use a reliable broker such as eToro for example, which is the ideal platform to invest in the shares of this company as a beginner.
Here’s a step-by-step guide on how to buy PepsiCo through eToro:
- Register on the eToro platform by filling in the requested fields with your personal data. Verify your account and log in.
- Once you are in your profile, locate the search bar and enter: PepsiCo.
- You will see real-time company data such as how much a share of PepsiCo is worth. Once you know this data you can click on the buy button.
- The platform will show you a pop-up window where you will be asked for the number of shares you wish to purchase.
- If you have already indicated the amount of shares you will buy in PepsiCo, then you only need to choose the type of quote that best suits your needs. Here you have two types: the quote proposed by the market, which is the price of the day, and the limited quote in which you can enter the estimated amount to be paid.
- After choosing the most suitable option for you, just click on the “invest” option and wait until you confirm the transaction.
- Learn everything you need to know about PepsiCo and what progress they have made as a company so far.
- It analyzes their advantages and disadvantages in detail.
- Compare results of other investors and corroborate that their earnings with PepsiCo are successful.
- Buy shares when the share price is low, and in case you want to sell them, do it when their value is increasing.