+- Dividend Growth Forum (http://DividendGrowthForum.com)
+-- Forum: Dividend Growth Investing (http://DividendGrowthForum.com/forumdisplay.php?fid=15)
+--- Forum: Individual Dividend Growth Stocks (http://DividendGrowthForum.com/forumdisplay.php?fid=35)
+--- Thread: DPS or PEP? (/showthread.php?tid=773)
DPS or PEP? - Bogart - 12-03-2014
I'm trying to decide which to purchase in my Loyal3 account. I already own KO. Which would you buy if you were intending to hold for 30+ years? I like the fact that PEP has Frito Lay and the international presence but being a Texan it's hard to not like DPS.
RE: DPS or PEP? - alexg - 12-03-2014
Buy both
RE: DPS or PEP? - EricL - 12-03-2014
Both are somewhat overvalued at current prices, with DPS a bit more so than PEP.
I own DPS and think its a great dividend growth company. If you have a chance to read past conference call transcripts on Seeking Alpha, management goes out of their way to talk about shareholder returns and the dividend. That said, I think PEP is a great company as well and is definitely more diversified than DPS.
I don't think you can go wrong with either over a long time frame, but would reiterate that both appear about 20-25% overvalued compared to historical valuations. Nothing wrong with starting an investment here, just wanted to point out the premium you are paying.
RE: DPS or PEP? - ChadR - 12-03-2014
I own both. Like EricL said, they are both overvalued. I own a lot more of PEP over DPS for their snack business portion of the company and for the international exposure. And being a fellow Texan, I can't say no to a cold Dr. Pepper. Since you are using a Loyal3 account, I would say go ahead and buy both as long as the investments are not large. Better values than both of these out there, but if you are stuck on these, got with both or if just one take PEP.
RE: DPS or PEP? - Turvok - 12-03-2014
I would go with PEP for the long run. With the snack business, I see more growth potential than just DPS.
RE: DPS or PEP? - Bogart - 12-03-2014
Since I already own a little KO is it a concern owning all three?
RE: DPS or PEP? - EricL - 12-03-2014
(12-03-2014, 10:21 PM)Bogart Wrote: Since I already own a little KO is it a concern owning all three?
Just depends on how many positions you want in your portfolio. I own KO and DPS but see nothing wrong with owning all three of them as long as you have diversification with other positions.
For example, If you have a portfolio of 10 companies, I probably wouldn't recommend holding all 3, but if you have a portfolio of 50, I would see no problem with it.