► Prefer to read?: https://dividendsandincome.com/high-quality-dividend-growth-stock-for-march-2021-pepsico-pep/ ► Jason Fieber's Stock Portfolio + BUY and SELL alerts: https://patreon.com/jasonfieber ► Dave Van Knapp’s Top 30 Dividend Growth Stocks for 2021: https://DaveVanKnapp.com/ ► Subscribe for new videos every day!: http://bit.ly/dai_youtube ► Buy and Hold These 3 Dividend Stocks Forever: https://yn345.isrefer.com/go/tdh36dtadvinc0321/dta/ ► #1 Fund for a Rock-Steady 8% Dividend in 2021… Paid Monthly: https://contrarianoutlook.com/members/aff/go/gregory/?i=343 ► WARNING: Avoid These Kinds of 5G Stocks Like the Plague: https://orders.investorplace.com/?cid=MKT464279&eid=MKT529316 ► Get FREE stocks (2 Stocks valued anywhere from $4-$1600): https://bit.ly/DAI-Bull In this series, High Quality Dividend Growth Stock of the Month, I cover phenomenally good companies. High-quality stocks go in and out of style on the market all the time. You've probably heard the phrase sector rotation. That's when investors, for whatever reason, abandon the latest hot thing for the next hot thing. Companies that were formerly market darlings get left behind when sentiment shifts in a different direction. In the past couple of years, the Info Tech sector has run away from the rest of the market, with annual price returns of 50.3% in 2019 and 43.9% in 2020. That's why so many great tech stocks are way overvalued right now. This month's High Quality Dividend Growth Stock does not come from the tech sector. It comes from the "boring" Consumer Staples [CONS] sector. I would have thought that Consumer Staples did great during the pandemic of 2020, but it actually ranked 7th out of the 11 sectors, lower than the S&P 500 as a whole. In fact, the Consumer Staples sector has price-underperformed the S&P 500 for five years in a row. For a value-seeking investor, that's not bad news. That’s where well-valued opportunities come from, like March’s High Quality DG Stock: PepsiCo (PEP). PepsiCo is often thought of as primarily a beverage company, sort of like Coca-Cola (KO), but it is much more than that. It makes more money from snacks than from beverages. Overall, PepsiCo has more than a dozen powerhouse brands with more than $1 Billion in annual sales, including Frito-Lay, Gatorade, Pepsi-Cola, Quaker, Tropicana, Lay’s, Naked Juice, Aquafina, Lipton, Doritos, Tostitos, Mountain Dew, Ruffles, Cheetos, and Sierra Mist. Great brands lead to business advantages such as pricing power. On top of that, PepsiCo's sheer scale leads to high production volumes, which tend to mean lower per-item manufacturing costs, lower procurement costs, and better leverage of fixed costs. The breadth of PepsiCo's product lines leads to distribution synergies. PepsiCo owns a large portion of its distribution network including bottling plants, warehouses, and delivery trucks. They can fill trucks with both beverage and snack products, which translates not only to economies of scale but also strong relationships with retailers and distribution partners. These structural advantages show up in PepsiCo's finances. I own PepsiCo in my Dividend Growth Portfolio (which I'll discuss in a future video). In fact, it was a charter member of the portfolio back in 2008. It has been a good performer since then, not only nearly doubling in value, but also contributing thousands of dollars to the portfolio’s dividend stream over the years, most of which have been used to invest in other stocks and build up the portfolio. The position occupies almost 7% of my portfolio, so it is maxed out for me. If it were not, I would strongly consider adding to the position at today’s prices. A 5-10% dip would make it even more attractive. You can catch dips like that by using a limit order rather than a market order. FOLLOW US: ► Website: http://www.dividendsandincome.com/ ► YouTube: http://bit.ly/dai_youtube ► Patreon: http://bit.ly/dai_patreon #BestDividendStocks #DividendStocksToBuyNow #DividendGrowthInvesting LEGAL DISCLAIMER: Please consult with a licensed investment professional before investing any of your money. Never invest in a security or idea featured on this channel unless you can afford to lose your entire investment. If your money is not FDIC insured, it may decline in value. Dave is not a licensed financial advisor, tax professional, or stockbroker and he does not purport to be. Links above may include affiliate commissions paid to the owners of Dividends and Income and help support this channel.