PEP
PepsiCo, Inc.
stock NASDAQ

Why not just peel off an amount equal to the dividends from am S&P investment? If the total return of PEP is something like -1% over the last 5 years but the S&P is +89.6%, wouldn't it just make more sense to sell $400/qtr or whatever this div frequency is? The returns are so far apart that even an S&P down year puts you so far ahead.

## 📈 52-Week Highs:
The 52-Week Highs list shows stocks that have reached their highest price point in the past 52 weeks during the trading session.
| Symbol | Name | Price | Year High | Market Cap |
|:-------|:-----|:-----:|:---------:|:----------:|
| [ASX](https://marketrodeo.com/asset/ASX) | ASE Technology Holding Co., Ltd. | $45.31 | $45.74 | $99.6B |
| [BK](https://marketrodeo.com/asset/BK) | The Bank of New York Mellon Corporation | $141.91 | $143.09 | $97.4B |
| [HONIV](https://marketrodeo.com/asset/HONIV) | Honeywell International Inc. Common Stock Ex Distribution When Issued | $256.01 | $267.99 | $81.1B |
| [MRNA](https://marketrodeo.com/asset/MRNA) | Moderna, Inc. | $203.46 | $208.90 | $80.7B |
| [RCB](https://marketrodeo.com/asset/RCB) | Ready Capital Corporation | $25.34 | $25.35 | $61.3B |
## 📉 52-Week Lows:
The 52-Week Lows list shows stocks that have reached their lowest price point in the past 52 weeks during the trading session.
| Symbol | Name | Price | Year Low | Market Cap |
|:-------|:-----|:-----:|:--------:|:----------:|
| [HD](https://marketrodeo.com/asset/HD) | The Home Depot, Inc. | $288.04 | $287.34 | $287.2B |
| [PEP](https://marketrodeo.com/asset/PEP) | PepsiCo, Inc. | $128.69 | $126.42 | $175.8B |
| [MCD](https://marketrodeo.com/asset/MCD) | McDonald's Corporation | $233.98 | $232.06 | $166.2B |
| [NEE](https://marketrodeo.com/asset/NEE) | NextEra Energy, Inc. | $75.89 | $74.78 | $158.3B |
| [TBB](https://marketrodeo.com/asset/TBB) | AT&T Inc. 5.35% GLB NTS 66 | $19.02 | $19.02 | $154.3B |
**Source:** [52-Week Highs-Lows](https://marketrodeo.com/market-movers?tab=highs-lows)

As much as I would like to add to my PEP, I cannot justify it. A dividend king, but I cannot justify adding more.
1.48 quarterly, PEP is at 128.50
That is a 4.61% yield, which is tempting
We find out on October 8.
Will I add if PEP goes to $110? That is a 5.38% yield.
PEP at $100 = 5.92% yield
I must see that new FCF number to see if PEP can justify its dividend.

Why not just peel off an amount equal to the dividends from am S&P investment? If the total return of PEP is something like -1% over the last 5 years but the S&P is +89.6%, wouldn't it just make more sense to sell $400/qtr or whatever this div frequency is? The returns are so far apart that even an S&P down year puts you so far ahead.

## 📈 52-Week Highs:
The 52-Week Highs list shows stocks that have reached their highest price point in the past 52 weeks during the trading session.
| Symbol | Name | Price | Year High | Market Cap |
|:-------|:-----|:-----:|:---------:|:----------:|
| [ASX](https://marketrodeo.com/asset/ASX) | ASE Technology Holding Co., Ltd. | $45.31 | $45.74 | $99.6B |
| [BK](https://marketrodeo.com/asset/BK) | The Bank of New York Mellon Corporation | $141.91 | $143.09 | $97.4B |
| [HONIV](https://marketrodeo.com/asset/HONIV) | Honeywell International Inc. Common Stock Ex Distribution When Issued | $256.01 | $267.99 | $81.1B |
| [MRNA](https://marketrodeo.com/asset/MRNA) | Moderna, Inc. | $203.46 | $208.90 | $80.7B |
| [RCB](https://marketrodeo.com/asset/RCB) | Ready Capital Corporation | $25.34 | $25.35 | $61.3B |
## 📉 52-Week Lows:
The 52-Week Lows list shows stocks that have reached their lowest price point in the past 52 weeks during the trading session.
| Symbol | Name | Price | Year Low | Market Cap |
|:-------|:-----|:-----:|:--------:|:----------:|
| [HD](https://marketrodeo.com/asset/HD) | The Home Depot, Inc. | $288.04 | $287.34 | $287.2B |
| [PEP](https://marketrodeo.com/asset/PEP) | PepsiCo, Inc. | $128.69 | $126.42 | $175.8B |
| [MCD](https://marketrodeo.com/asset/MCD) | McDonald's Corporation | $233.98 | $232.06 | $166.2B |
| [NEE](https://marketrodeo.com/asset/NEE) | NextEra Energy, Inc. | $75.89 | $74.78 | $158.3B |
| [TBB](https://marketrodeo.com/asset/TBB) | AT&T Inc. 5.35% GLB NTS 66 | $19.02 | $19.02 | $154.3B |
**Source:** [52-Week Highs-Lows](https://marketrodeo.com/market-movers?tab=highs-lows)

As much as I would like to add to my PEP, I cannot justify it. A dividend king, but I cannot justify adding more.
1.48 quarterly, PEP is at 128.50
That is a 4.61% yield, which is tempting
We find out on October 8.
Will I add if PEP goes to $110? That is a 5.38% yield.
PEP at $100 = 5.92% yield
I must see that new FCF number to see if PEP can justify its dividend.

The main thing I’d watch is that this isn’t really just a covered call/wheel setup. With 100 shares + short 128 put + short 128 call, you’re basically running a covered straddle.
Above 128, your upside is capped. Below 128, the short put can assign you another 100 shares, so your downside exposure effectively doubles right when the stock is moving against you.
That’s not necessarily bad if you genuinely want 200 shares of PEP at that basis, but I’d make that decision before entering, not after assignment happens.
The premium looks nice because you’re taking real downside risk. I’d stress test the trade at something like 120, 110, even 100 and make sure you’re still comfortable owning the resulting position.

## 📈 52-Week Highs:
The 52-Week Highs list shows stocks that have reached their highest price point in the past 52 weeks during the trading session.
| Symbol | Name | Price | Year High | Market Cap |
|:-------|:-----|:-----:|:---------:|:----------:|
| [BK](https://marketrodeo.com/asset/BK) | The Bank of New York Mellon Corporation | $141.91 | $143.09 | $97.4B |
| [HONIV](https://marketrodeo.com/asset/HONIV) | Honeywell International Inc. Common Stock Ex Distribution When Issued | $256.01 | $267.99 | $81.1B |
| [RCB](https://marketrodeo.com/asset/RCB) | Ready Capital Corporation | $25.34 | $25.35 | $61.3B |
| [NTRA](https://marketrodeo.com/asset/NTRA) | Natera, Inc. | $411.77 | $417.38 | $59.0B |
| [A](https://marketrodeo.com/asset/A) | Agilent Technologies, Inc. | $175.19 | $176.02 | $49.5B |
## 📉 52-Week Lows:
The 52-Week Lows list shows stocks that have reached their lowest price point in the past 52 weeks during the trading session.
| Symbol | Name | Price | Year Low | Market Cap |
|:-------|:-----|:-----:|:--------:|:----------:|
| [PEP](https://marketrodeo.com/asset/PEP) | PepsiCo, Inc. | $128.50 | $126.72 | $175.5B |
| [MCD](https://marketrodeo.com/asset/MCD) | McDonald's Corporation | $233.60 | $233.24 | $166.0B |
| [LOW](https://marketrodeo.com/asset/LOW) | Lowe's Companies, Inc. | $187.69 | $186.30 | $105.2B |
| [SOMN](https://marketrodeo.com/asset/SOMN) | The Southern Company | $44.64 | $44.45 | $97.8B |
| [SO](https://marketrodeo.com/asset/SO) | The Southern Company | $82.35 | $81.91 | $94.7B |
**Source:** [52-Week Highs-Lows](https://marketrodeo.com/market-movers?tab=highs-lows)

The main risk is downside below your effective stock basis: the short put can add 100 shares while the call caps upside near $128. What is your loss limit if PEP gaps lower?

PEP has got my attention -It's down 35%

On another note, PEP has returned -7.5% in the last year and -10.9% YTD.

PEP has more to fall. I fear that $80-$90 may be where you would want to buy or hold. Anything above would be too painful to bear.

I understand the allure with dividends but even the total return of PEP when including divs is terrible over the last 5 yrs. What's attractive about it?

I am not saying it can't drop or its impossible to drop further. I am saying all indicators are leaning towards the conclusion it wont drop.
I am happy to invest now and take the potential pain of PEP falling- now its 35% from its high than at any other point in the last year. The drop is much more shallow.

As a practitioner, I have to be in the market. I need to find the spots that are most favourable :)

do you see demand for lays increasing? more and more snack options are available and people are caring more about their health. They've even added protein dorritos to the market to try to capture some more customers.

Yes PEP is blue chip but they've got a ton of debt in a rising interest rate environment. Net revenue in the US has actually fallen and their total revenue is growing at less than 3% per year. They could make a turnaround but there's better options out there

Your right . that is the risk. 100%. Any other stock I would be running for the hills but this is PEP. Its American blue chip as you get.

this sounds like a covered strangle setup if I'm reading it right, you buy the shares then sell an ITM put and a call at the same strike

picking up $770 on a $12,700 position is like 6% in a month which is wild for something like PEP, even with it sliding lately

the part that makes me pause is the "very very unlikely" bit, PEP's been in a downtrend for half a year, so saying it can't keep dropping feels like wishful thinking, but hey if you're cool bagholding at a lower cost basis then the math works out