PepsiCo is Marching Toward Dividend King Designation

Given the ubiquity of the PepsiCo (NASDAQ: PEP) brand worldwide, it is easy to think of Pepsi as a mature company that is past the growth phase of its lifecycle. While Pepsi isn't growing like an early stage tech stock, there is plenty to like about the consumer packaged goods giant.

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Growth in consumption of soft drinks, bottled water and snacks is closely correlated with global GDP growth and population growth, which bodes well for Pepsi as more people around the globe enter the world's middle class. The company also has plenty of runway ahead in terms of gaining market share. According to the company's 2021 presentation at the Consumer Analyst Group of New York, Pepsi currently has a 9% share of the $570 billion global beverage business. The company simultaneously has a 7% share of the $550 billion global snacks business and boasts a portfolio of well-known brands, including Doritos, Tostitos and Cheetos. Both of these opportunities are growing at a 4-5% compounded annual growth rate per year so this growth combined with Pepsi's ability to take market share means there is plenty of potential runway ahead.

Source Fool.com