PepsiCo Inc.

CISCO SYSTEMS INC., $29.43, Nasdaq symbol CSCO, jumped 8% this week after reporting better-than-expected quarterly results and raising its dividend. The company is a leading maker of hardware and software that links and manages computer networks. In its fiscal 2015 second quarter, which ended January 24, 2015, Cisco’s revenue rose 7.0%, to $11.9 billion from $11.1 billion a year earlier. That beat the consensus estimate of $11.8 billion....

PEPSICO INC. $94 (New York symbol PEP; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 1.5 billion; Market cap: $141.0 billion; Price-to-sales ratio: 2.2; Dividend yield: 2.8%; TSINetwork Rating: Above Average; www.pepsico.com) has launched Pepsi True, a new cola that has 30% less sugar than regular Pepsi. This new drink uses stevia, an all-natural sweetener without the calories or health drawbacks of sugar. Pepsi True will also contain no artificial sweeteners or high-fructose corn syrup. The launch follows a nine-year decline in U.S. soft drink sales as a result of increased health concerns spurred by research linking these drinks to obesity and other conditions....

PEPSICO INC. $94 (New York symbol PEP; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 1.5 billion; Market cap: $141.0 billion; Price-to-sales ratio: 2.2; Dividend yield: 2.8%; TSINetwork Rating: Above Average; www.pepsico.com) has launched Pepsi True, a new cola that has 30% less sugar than regular Pepsi.

This new drink uses stevia, an all-natural sweetener without the calories or health drawbacks of sugar. Pepsi True will also contain no artificial sweeteners or high-fructose corn syrup.

The launch follows a nine-year decline in U.S. soft drink sales as a result of increased health concerns spurred by research linking these drinks to obesity and other conditions.

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HEWLETT-PACKARD CO., $33.50, New York symbol HPQ, plans to break itself into two separate companies. The first firm, called Hewlett-Packard Enterprise, will sell computing products, like servers and analytics software, to businesses and governments. It will also offer cloud computing services and financing. Hewlett-Packard Enterprise will have annual revenue of $58.4 billion and $6 billion of gross profits. Meg Whitman, Hewlett’s current chief executive officer, will become its CEO....

ATLANTIC TELE-NETWORK, $55.15, symbol ATNI on Nasdaq, is raising its quarterly dividend by 7.4%, to $0.29 a share from $0.27, with the October 10, 2014, payment. The stock now yields 2.1%. Atlantic closed the sale of its Alltel wireless business to AT&T (symbol T on New York) late last year. It now holds cash of $407.6 million, or $24.64 a share, and has paid off its $271.1 million of debt. The company could use its high cash balance to make acquisitions or expand its remaining operations. It could also make further dividend increases or pay special dividends. Meanwhile, the stock trades at a high 26.3 times the $2.10 a share that Atlantic is forecast to earn this year....

PEPSICO INC. $89 (New York symbol PEP; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 1.5 billion; Market cap: $133.5 billion; Price-to-sales ratio: 2.1; Dividend yield: 3.0%; TSINetwork Rating: Above Average; www.pepsico.com) continues to face pressure from activist investor Nelson Peltz to spin off or sell its beverage business, which has suffered as health-conscious consumers cut their soft drink consumption. Peltz owns about 1% of the company’s shares. The beverage operations supply 48% of PepsiCo’s sales. The remaining 52% comes from its snack food operations, which include Frito-Lay potato chips and Quaker Oats cereals. The company has rejected the proposal because it feels making both soft drinks and snacks gives it manufacturing, distribution and marketing advantages. Instead, it aims to boost its profits with a new five-year plan that includes automating more of its bottling plants and closing less-efficient facilities. PepsiCo will use the resulting savings to buy back $5 billion worth of its shares in 2014....

PEPSICO INC. $89 (New York symbol PEP; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 1.5 billion; Market cap: $133.5 billion; Price-to-sales ratio: 2.1; Dividend yield: 3.0%; TSINetwork Rating: Above Average; www.pepsico.com) continues to face pressure from activist investor Nelson Peltz to spin off or sell its beverage business, which has suffered as health-conscious consumers cut their soft drink consumption. Peltz owns about 1% of the company’s shares.

The beverage operations supply 48% of PepsiCo’s sales. The remaining 52% comes from its snack food operations, which include Frito-Lay potato chips and Quaker Oats cereals.

The company has rejected the proposal because it feels making both soft drinks and snacks gives it manufacturing, distribution and marketing advantages. Instead, it aims to boost its profits with a new five-year plan that includes automating more of its bottling plants and closing less-efficient facilities. PepsiCo will use the resulting savings to buy back $5 billion worth of its shares in 2014.

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Sales are slowing at these beverage makers, mainly because health-conscious consumers are cutting back on sugary drinks and alcohol. Still, they are taking measures to support their well-known brands and help them continue to prosper. They’re also cutting their costs in order to free additional cash. PEPSICO INC. (New York symbol PEP; www.pepsico.com) is the world’s second-largest soft drink maker after Coca-Cola. It also makes other products, such as Frito-Lay snack foods, Gatorade sports drinks, Tropicana fruit juices and Quaker Oats cereals....

Sales are slowing at these three beverage makers, mainly because health-conscious consumers are cutting back on sugary drinks and alcohol. Even so, we feel their well-known brands will continue to help them prosper. They’re also doing a good job of cutting their costs, which is freeing up additional cash for acquisitions and dividends. However, in light of their recent gains, only one is a buy right now. PEPSICO INC. $87 (New York symbol PEP; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 1.5 billion; Market cap: $130.5 billion; Price-to-sales ratio: 2.0; Dividend yield: 3.0%; TSINetwork Rating: Above Average; www.pepsico.com) is the world’s second-largest soft drink maker after Coca-Cola. It also makes other products, such as Frito-Lay snack foods, Gatorade sports drinks, Tropicana fruit juices and Quaker Oats cereals....

PEPSICO INC. $87 (New York symbol PEP; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 1.5 billion; Market cap: $130.5 billion; Price-to-sales ratio: 2.0; Dividend yield: 3.0%; TSINetwork Rating: Above Average; www.pepsico.com) is the world’s second-largest soft drink maker after Coca-Cola. It also makes other products, such as Frito-Lay snack foods, Gatorade sports drinks, Tropicana fruit juices and Quaker Oats cereals.

Consumers are becoming increasingly concerned about the health effects of soft drinks, as well as potato chips and other snacks. The company continues to develop more nutritious alternatives in response.

For example, it owns the exclusive soft drink rights to a new type of sweetener called Sweetmyx, which lets food makers use less sugar in their products. At the same time, PepsiCo is cutting salt and fat from its foods.

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