12-03-2014, 09:44 AM
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.
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.