PEP sees investment from investor

Activist investor Nelson Peltz announced an equity position in PEP on Friday, sending shares higher more than 3% before selling off slightly into the close.

PepsiCo, Inc. (NYSE:PEP) maintains that its strength lies in the fact that while its portfolio is diverse, it's also related. Consumers frequently buy chips and a soda. This, the company says, is complementary. It provides a natural hedge that allows the company to deliver good returns.

And it has delivered nice returns. Last year, core earnings were $4.10 a share. Organic revenue was up 5%. It saved $1 billion in the company’s first year of its productivity program and remains on track to deliver $3 billion in savings by 2015. Through repurchases and dividends, it returned some $6.5 billion to shareholders last year alon

Source: insidermonkey.com