It has been a very busy stock week for me and many other investors alike. Due to the election this week, the stock market was faced with quite a bit of fluctuation and volatility. With fluctuations and extreme volatility come great entry points for investors. Nothing feels better then purchasing into a stock when it is in the red. I have quoted it before but my favorite time to get into the market is when others are selling out
I did just that this week and I was able to take advantage of a great sale in a company I have been waiting on the side lines to enter into. That company is Pepsi. I wrote an in depth article highlighting my love for this company in the beginning to this year and all these values still hold true to this day,
One of the best safety nets investors like my self can employ to help protect my portfolio is diversify. This is exactly what Pepsi has managed to do with it's company. Pepsi is diversified in a LOT of products. To name a few, Gatorade, Doritos, Tostito's, Lipton, Mountain Dew, Quaker Oats and Lay's.
If you haven't heard of any of these brands, It may be safe for me to say that you live under a rock. Although I don't consume any of the products Pepsi owns I do know that the rest of the world does. This company has continued to grow sales consistently from year to year.
Here is a list of amazing facts that really make me feel secure about this purchase. The dividend yield is at 2.92% which is not the highest, but is still a great number. That makes it a payout of $3.01 per share and per year. The payout ratio is a little higher then I typically like but it is still within the a healthy level for dividend payout increases. Earnings per share is at an amazing $4.80 and the company has consistently been growing dividend payouts for 43 years straight! If these facts weren't enough to make you like the company here are a few more. Market cap is at 148B, EPS growth of 35% and revenue of 62B.
To say the least, this is a solid company with a solid balance sheet. They have amazing diversification within the consumer goods sector and this company is has the ability to grow and payout dividends for years to come.
now the fun facts on the addition to my Independence Fund. On 11/11/2016 I purchased 9 shares of PEP at 103.57 a share. I'm very happy with this entry point and it gives my position a lot of gas to grow with investment gains as well. With this new addition to my portfolio I have added 27.09 to my annual dividend Income. With this purchase it puts my portfolio's projected annual dividend income at $756.93 per year! I'm climbing closer and closer towards my year end goal $800 per year. It is becoming increasingly harder for me to hit this target by the end of the year but I'm very determined to hit this goal! I'm going to have to hit it out of the park with my next investment since I'm only $43.07 off from my goal. This is a very reasonable target and I have full confidence I will hit this goal with my next purchase.
I have also already broken another one of my yearly goals of owning 10 companies by the end of the year. I still have one more goal left for me to hit by the end of the year which I'm sure I will be able to surpass. With December approaching quickly I may not be able to put much extra into the account next month but we will see what I can do!
I'm really looking forward to the rest of the month as I still have two more dividend payouts to receive.
December will also be a very nice month for dividend payouts and I',m very excited for the rest of the year and what the market has in store for all of us.
How is everyone else's month going? Hopefully some others have taken advantage of some great buying opportunities this month. Photo courtesy of Pepsi Co. All Rights Reserved.