February 14, 2014

Pepsi, the ‘Live for Now’ company, released its Q4 2013 Earnings on Feb. 13, 2014. The company reported adjusted earnings of $1.05 a share, beating estimates by 4 cents. Pepsi also increased their dividend per share by 15% to $2.62. This represents the 42nd consecutive year of annual dividend increases. This brings their 10-year annualized dividend per share compound annual growth to 11%. Unfortunately, the company missed slightly on revenue expectation by 0.2%. It turns out the ‘Live for Now’ investors moved the stock lower by almost 3% over the past two days. For what, you might ask. Aren’t stock prices supposed to reflect fundamentals?

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