Keep holding these two foodmakers

Article Excerpt

These two companies are food-industry leaders and continue to expand beyond their home markets. Those factors should let them continue to raise their dividends. However, after their recent price gains, both stocks are somewhat expensive in relation to their projected earnings. That increases the chances of a sudden setback if their growth stalls. PEPSICO INC. $112 (New York symbol PEP; Conservative-Growth Payer Portfolio, Consumer sector; Shares outstanding: 1.4 billion; Market cap: $156.8 billion; Dividend yield: 2.9%; Dividend Sustainability Rating: Above Average; www.pepsico.com) is the world’s second-largest soft-drink maker after Coca-Cola. Its other brands include Frito-Lay snack foods, Gatorade sports drinks, Tropicana fruit juices and Quaker Oats cereals. LISTEN:   Starting with the June 2017 payment, the company will raise its quarterly dividend by 7.0%, to $0.805 a share from $0.7525. The new annual rate of $3.22 yields 2.9%. Stead In the quarter ended December 31, 2016, the company’s sales rose…