If you own PepsiCo shares, you may have bought them because of the attractive dividend payments that flow into your account every quarter.

Rising dividends for 52 years! In fact, the company from Purchase, New York has been increasing its rewards for holding the securities for a whopping 52 years. For 2023, there is 2.97 percent, which is more than a savings account. But wait, in the course of 2023, PepsiCo’s stock lost 10.5 percent of its value and even in the still young year of 2024, the stock performance is declining, so that dividend hunters may have received their payments regularly, but on the other hand suffered book losses. Hardly won, already gone!

Revenue and profit development (annual) PepsiCo; Source: aktienscreener.com

The fundamental key data still look relatively stable, so that value investors might come up with the idea of buying in now.

Chart technical development of PepsiCo stock In October, the stock found its previous low after a longer sell-off phase and formed a sideways range. On the downside, the security was able to form a support at around 165 USD. On the upside, there were two breakout attempts above the resistance line at 172 USD. It is noticeable that there were strong sell-offs with high daily volume shortly afterwards. This is tendentially bearish. On the other hand, the value investors may still be right if the prices should be back above 172 USD and take off with strong volume. Until then, you will most likely be better off with cash positions.

PepsiCo stock (ISIN US7134481081) – 1 year in daily chart; Source: aktienscreener.com

Conclusion Dividend stocks can be attractive, but only if the prices are relatively stable. By regularly checking the charts, you can avoid many mistakes.