How Dividendology’s view on $PEP changed

2026-09-16Bearish
“5 Dividend Stocks at a 52 Week Low!”
PEP is unattractive due to unsustainable dividend growth driven by high free cash flow payout ratios (99.5%) and weak future cash flow guidance.

Now, we come to Pepsi stock, a stock that I'm starting to wonder if people are tired of me talking about. Why? Well, I get tons of requests to cover Pepsi stock. I keep seeing online how it's an incredible opportunity because the starting yield is one of the highest it's been really in the last 5 to even 10 years.

On top of this, the valuation multiple is the lowest it's been in 10 years. However, I've been talking bad about Pepsi for really the last 3 to four years. In fact, I wrote an article on Seeking Alpha over a year ago titled Buy or Beware.

The warning signs are there. And Pepsi has not done well over the last year or over the last 5 years.

2026-08-25Bearish
“This is Bad News for Pepsi Stock... | Pepsi (PEP) Stock Analysis! |”
Bearish on PEP due to unsustainable capital allocation where dividends consume ~100% of FCF; DDM fair value of $105 implies 26% downside.

Pepsi stock continues to be one of the most debated stocks among investors right now, and really it's been that way over the last couple of years. Ultimately, if we jump over to the dividend breakdown sheet and look at Pepsi, what you can see is the stock is yielding over 4%, which real quick for reference, if we look here on Seeking Alpha and look at the historical dividend yield, this is the highest dividend yield the company has seen in the last decade.

2026-08-12Bearish
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