Here's my writeup for my latest buy for this portfolio, PepsiCo:http://www.fool.com/investing/dividends-income/2011/02/14/ri...
I have been looking at PepsiCo. I have owned shares, through a dividend reinvestment plan, for a long time. It has been years since I added cash to the plan but that may change.The operating margins here are OK at 17% (although Coke comes in at 24%). But, it is the #1 position in snacks that gives the company the diversification that makes it special to me. My preference for Pepsi Max doesn't hurt either. LOLInflation worries may send this stock down to prices that will be more interesting. Pepsi is not a growth engine like CMG. But, it does have the brand portfolio that should allow the company to maintain good margins even in bad times.The biggest headwind may be the White House's efforts to get people to eat healthy foods. While Pepsi sells water and other goods consumers could switch into, I think the Administration will try to make their changes through the tax code. Like cigarettes, people will buy (or smoke) what they want. But, as prices go up, they buy less. The long-term effect could be negative (although Altria was one of the top total return stocks for decades).I like PepsiCo.W.D.
I'm not gong to get too excited about the move into 'healthy' foods until I see how healthy they really are. In my own experience as a grocer shopper, I've seen too many food loaded with chemical and/or sugar and/or fat and still labelled as 'healthy' because they are slightly lower in calories, made with whole grains or a smaller portion size. CADeb
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