Better Buy: PepsiCo, Inc. vs. Anheuser-Busch InBev
With the beer king and soda giant currently yielding 4.8% and 3.5%, respectively, that remains true today. But which of these dividend stalwarts is the best buy now? Their vast global distribution networks provide both Anheuser-Busch InBev and Pepsi with powerful competitive advantages. Combined with its broad beverage lineup, this gives Pepsi greater revenue diversification than AB In-Bev. For this reason, I'd argue that Pepsi has the stronger competitive position. Wall Street forecasts that AB InBev will increase its earnings per share at 9.3% annually over the next five years, fueled by its margin-expanding "premiumization" initiatives -- which are boosting sales of its higher-priced brands -- and additional cost savings related to its merger with SABMiller.