PepsiCo Hits Decade-Low Valuation Amid Beverage Business Struggles

PepsiCo is one of the largest and most well-known beverage and snack companies in the world, with over 30 billion-dollar brands under its belt. Despite its deep vertical integration, PepsiCo's North American beverage business has struggled to keep pace with competitors like Coca-Cola and Keurig Dr Pepper, leading to a decline in market share.

In response to this challenging operating environment, PepsiCo is now trading at an unusually low valuation, with a TTM free cash flow yield of almost 5%, the highest in at least a decade. This means that investors can earn a significant return on their investment, with the current dividend yield standing at 4.3%, the highest since the early 1990s.

PepsiCo is also a 'dividend king', having increased its dividend for 54 consecutive years. The author of this article has taken advantage of this opportunity to buy shares in PepsiCo, and stands ready to accumulate more if the stock continues to decline.