Snack on this stock

If you’re looking for a resilient investment during this pandemic, consider Pepsico (NASDAQ: PEP). It’s not simply a beverage company, as many people assume; it also owns the Frito-lay family of snacks and the Quaker Foods business. In fiscal 2019, Pepsico generated 46% of its revenue from beverages and 54% from foods. It’s also very much a global company, with 42% of revenue coming from outside the U.S. in fiscal 2019.

To grasp just how dominant Pepsico is in the food and beverage business, check out some of its brands: Pepsi-cola, Lay’s, Doritos, Aquafina, Mountain Dew, Gatorade, Pure Leaf, Tropicana, Quaker Oats, Brisk, Smartfood, Ruffles, Cheetos, Fritos, Tostitos, Rold Gold, Funyuns, Life cereal, Cracker Jack, Rice-a-roni, Sierra Mist, 7UP, Naked, Near East and Walkers. Fully 23 of its brands each generate more than $1 billion in annual revenue.

Pepsico isn’t resting on its laurels. It’s boosting its popular energy-drink offerings, and it’s building a direct-to-consumer revenue channel via its Pantryshop. com and Snacks.com websites.

Pepsico’s dividend recently yielded almost 3%, and that payout has been increased annually for 48 consecutive years. (The most recent increase was 7%.) The company’s market value was recently around $190 billion, and its forward-looking price-to-earnings (P/E) ratio was recently in the mid-20s; these suggest that it’s not a screaming bargain, but it’s not wildly overpriced, either.