Our Terms of Service and Privacy Policy have changed.

By continuing to use this site, you are agreeing to the new Privacy Policy and Terms of Service.

2 of 6
BACK NEXT
PepsiCo
PepsiCo

Pepsi is your classic safe haven stock for a weak economy.

With brands such as its flagship Pepsi soft drinks as well as Gatorade and Quaker under its wing, the company is a leader in the North American food and beverage market. But it is also well-positioned to expand internationally.

"Long-term international opportunities coupled with its dominant market positions in North America strengthen the company's already best-in-class position," wrote analyst Jonathan Feeney of Wachovia in a report.

The company's steady cash flow has allowed it to invest heavily in overseas growth, Feeney said.

Shares of Pepsi trade at about 19 times 2008 year-end estimates, in line with the valuation for its top rival Coca Cola. But Pepsi's earnings are expected to grow at a faster clip over the next few years.

Pepsi pays a dividend that yields an attractive 2.1%. That's a tad lower than Coke's 2.3% yield, but Pepsi's dividend payout has increased 20% a year, on average, over the past five years, compared to annual dividend growth of 11% for Coke.



NEXT: Abbott Laboratories
Last updated June 20 2008: 1:23 PM ET
More Galleries
10 logo changes that drove people crazy When companies change logos, the backlash is often fierce. More
Hottest new Star Wars toys unveiled BB-8 can now be yours. So can interactive Furbacca, Yoda, a three-pronged lightsaber and other toys from the Star Wars movie. More
Google's logos through the years Google changed its logo for the fifth time in 17 years this week. Here's what the old ones looked like. More

Special Offer