Will PepsiCo, Inc. (PEP) Help You Retire Rich?

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Despite the constant comparisons to Coca-Cola (NYSE:KO) , PepsiCo has staked out a different core business model, with big success. Rather than simply relying on beverages as Coke does, PepsiCo’s entire aim is to capitalize on the fact that consumers tend to buy snacks and drinks together. By offering both, PepsiCo, Inc. (NYSE:PEP) maximizes its revenue, while Coke leaves the potential snack sales on the table — often for Pepsi’s Frito-Lay to grab.

But lately, Pepsi has had to deal with the threat of rising anti-obesity sentiment. Soda sales have declined in the U.S., in part because of concerns about sugar and calorie content, and even as Pepsi has shifted toward alternate beverages, the impact on the company’s growth has been considerable. Even emerging-market sales haven’t been able to soften the blow entirely for Pepsi, as Coke has fought it around the world in search of higher-growth areas.

So far, though, Pepsi has resisted pressure to break itself into two separate companies. Despite the recent move from Kraft Foods (NASDAQ:KRFT) to free its Mondelez (NASDAQ:MDLZ) snack business, Pepsi’s unified approach to snack and beverage sales arguably requires a close relationship in order for it to work.

For retirees and other conservative investors, the fact that PepsiCo’s dividend growth has slowed recently even as its shares have gotten more expensive isn’t the best of news. Even with more than 40 years of rising dividend payouts, PepsiCo would be a better buy for a retirement portfolio at a slightly cheaper price — especially as it continues to work through the challenges of the current economic environment.

The article Will PepsiCo Help You Retire Rich? originally appeared on Fool.com.

Fool contributor Dan Caplinger has no position in any stocks mentioned. The Motley Fool recommends Coca-Cola and PepsiCo and owns shares of PepsiCo.

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