This post is one of six articles on beverage-related stocks. Here are five other investment ideas to sip on.

"PepsiCo (NYSE: PEP) is feeling the heat from high commodity prices as well as penny-pinching consumers," says Chuck Carlson, the advisory industry's top authority on dividend reinvestment plans.

The editor of The DRIP Investor suggests, "The stock has pulled back more than 18% from its 52-week high. Investors should take advantage of the current price lull to do buying in these shares."

"The decline follows weakness in a variety of consumer-related stocks. However, while near-term price action will likely be limited, the stock's long-term prospects remain sound.

"The firm has strong market positions in its soft-drink, sport-drink, and snack-food businesses. Record pro? ts are expected this year and next. A rising dividend stream enhances appeal.

"PepsiCo is one of the world's largest food and beverage companies, with 2007 revenue of more than $39 billion. It has 18 brands that generate $1 billion or more in annual revenue.

"Its international business generated around 40% of sales and 29% of operating profits in 2007. The international side has been a major growth engine, with PepsiCo International showing 27% revenue growth in the first quarter. Thus, these shares have lost some of their defensive appeal during the recent market downturn.

"Despite higher raw-material costs, PepsiCo should post record pro?ts in 2008 of at least $3.72 per share, up from $3.38 in 2007.

"The stock currently trades at 17 times expected 2008 results. That is not necessarily bargain basement but is a fair valuation for a company that consistently produces solid revenue and earnings growth.

"The consensus earnings estimate for 2009 is $4.12 per share, but that number could prove conservative should the firm catch a break on commodity prices, which are due for a pullback.

"PepsiCo's steady earnings growth has fueled consistent dividend increases. It recently boosted its dividend 13% to an annual rate of $1.70 per share. It was the 36th annual dividend increase for the company.

"The stock's current yield is 2.6% .I don't see a lot of downside in the stock, perhaps to the $60 level. We view these shares as capable of returning to the $70s over the next 12 months. Investors should take advantage of the current price lull to do buying in these shares.

"DRIP investors take note that PepsiCo offers a direct-purchase plan whereby any investor may buy shares directly, the first share and every share. The plan has a $10 one-time enrollment fee but no ongoing purchase fees."

Steven Halpern's TheStockAdvisors.com offers a daily look at the latest market commentary and favorite stock picks and investment ideas from the nation's leading financial newsletter advisors.

PepsiCo (PEP): Add some 'pep' to your portfolio originally appeared on BloggingStocks on Fri, 12 Sep 2008 14:46:00 EST. Please see our terms for use of feeds.

"In 1999, Qualcomm (NASDAQ: QCOM) went from less than $4 to over $92; but the party came to a screeching halt over the next three years," recalls Chuck Carlson, an expert on stocks that offer dividend reinvestment plans.

In The DRIP Investor, he explains, "The stock has been stuck in a trading range for the last four years. But that looks like it is about to end, as it recently moved to a new 52-week high and is setting its sites on its 2006 high of $53."

"Strong earnings and greater visibility on some litigation matters should pave the way for solid gains in the second half of 2008. Technology stocks should remain among the market's leading sectors, and Qualcomm offers an excellent play in the group.

"Qualcomm generates 90% of its revenue from cell-phone chipsets and license royalties paid by users of its intellectual property. Qualcomm's chips are used in mobile phones and wireless infrastructures around the globe.

"Growth here should remain strong as networks convert to third-generation technology and emerging markets expand and upgrade their infrastructure.

Continue reading Qualcomm (QCOM): Ready for a rebound?

Qualcomm (QCOM): Ready for a rebound? originally appeared on BloggingStocks on Wed, 11 Jun 2008 10:36:00 EST. Please see our terms for use of feeds.

"Dividend growth has become increasingly scarce on Wall Street," says says Chuck Carlson, an expert on dividend reinvestment plans. In his The DRIP Investor he looks at two stocks boosting their payouts.

"For the first time in five years, the number of companies in 2007 boosting their dividends declined nearly
6% from the previous year, according to Standard & Poor's. And the slowdown in dividend growth continued in the first quarter of 2008.

"The first quarter marked the seventh consecutive three-month period of year-over-year declines in the number of companies raising dividends. Through the first three months of this year, 19% fewer companies raised dividends than in the year-earlier quarter.

"Even more alarming, 83 companies decreased their dividends during the fi rst quarter, according to S&P. That's up from just 19 in the same period in 2007 and is the highest number of dividend decreases since 1991.

"Nevertheless, there are still plenty of companies willing to boost their dividends, and you can now buy such companies at bargain prices.

Continue reading Dividend boosters: Emerson Electric (EMR) and United Technologies (UTX)

Dividend boosters: Emerson Electric (EMR) and United Technologies (UTX) originally appeared on BloggingStocks on Thu, 05 Jun 2008 14:20:00 EST. Please see our terms for use of feeds.