18H·

Pepsi vs. S&P 500

I've $PEP (-0.04%) held this stock in my portfolio for about 4 years now, and including dividends, I’m just barely breaking even. Even though the dividends are nice, I don’t think Pepsi will outperform the market in the long run either. Since my core portfolio consists mainly of $LYPS (+0.75%) and $MEUD (+0.27%) , I’m considering closing out this position and putting most of it there—partly because my satellite holdings can handle more risk than Pepsi. For one thing, I’d likely get a better return there in the future, and I’d also have a more streamlined portfolio. I might even put a portion of that into riskier stocks like $SOFI (+2.24%)
$NU (-0.48%)
$NOW (+0.16%) . I think those are more likely to outperform the market.

What do you think, and how would you handle this?

6
2 Comments

profile image
A little pizzazz never hurt anyone :)
6
profile image
It's a question of strategy—and, in principle, you've almost answered it yourself.

Pepsi isn’t a bad company, but it’s still more of a defensive stock. I’d be very surprised if Pepsi outperformed the S&P 500 in the medium term. So if you’re looking for dynamic price growth, it probably makes sense to rebalance your portfolio.
1
Join the conversation