Pepsico (PEP)

PepsiCo International has seen steady, strong growth in recent years. In the latest quarter rising sales volume in Asia helped offset rising input costs. "Overall Pepsi has shown a much bigger progress than Coke over the past 10 years. In addition, it’s trading at a bargain multiple relative to its biggest competitor. And last but not least, its dividend growth is much higher than Coke. I would consider adding to Pepsi on dips below $68. I might also consider adding to Coca-Cola below $51."

Over the past several weeks the company has traded below 68 on a couple of occasions. I am considering buying some PEP this week, as long as the price is below $68.

In addition to that PEP recently announced an increase in its annual dividend from $1.50 to $1.70, which is a healthy 13.33% raise. The quarterly dividend of $0.425 is payable June 30, 2008, to shareholders of record on June 6, 2008.The ex-dividend date is June 4.

The diversity of PEP's product line gives it a certain amount of protection against poor conditions in any one of its markets.

PepsiCo International has seen steady, strong growth in recent years. Frito-Lay products are showing particular growth potential, which looks to continue into the future.

PepsiCo's implementation of the Smart Spot program has been very successful, garnering the company some good publicity.