Investing in PepsiCo for Long-Term Growth: A Smart Choice Over Coca-Cola

Thursday, 28 March 2024, 09:20

Choosing between PepsiCo (NASDAQ: PEP) and Coca-Cola (NYSE: KO) for investment boils down to understanding the companies' key metrics and growth potential. While both are Dividend Kings with similar dividend yield and payout ratio, PepsiCo's diversified business including beverages, snacks, and foods sets it apart. The potential for profit growth, driven by international scale and product diversity, makes PepsiCo a more appealing investment choice over Coca-Cola.
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Investing in PepsiCo for Long-Term Growth: A Smart Choice Over Coca-Cola

The Simple Reason That I'd Buy Pepsi Stock Before Coca-Cola Stock

I believe one of these two has a clearer path to long-term profit growth. The Coca-Cola Company (NYSE: KO) gets no shortage of attention from investors. It's been publicly traded for more than 100 years and has created many millionaires along the way.

Moreover, it counts famed investor Warren Buffett among its fans, which goes a long way in boosting investor sentiment.

However, I'd buy shares of PepsiCo (NASDAQ: PEP) today if I were forced to choose between it and Coca-Cola.

  • Don't get me wrong: I often drink Coke products and have loved the iconic branding since I was young.

But Pepsi has something that Coke doesn't and it makes all the difference for me when thinking about these two companies as an investor, not a consumer.


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