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How to buy PepsiCo shares (PEP)
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This guide tells you everything you need to know in order to invest in some of its shares. We go through a short history of PepsiCo, what to look out for before you buy, and the best brokers to use to invest.
Compare the best PepsiCo trading platforms
If you are looking for the best place to buy PepsiCo stock online, we can help. Simply choose one of the brokers from the list below. All of these have been reviewed and approved by our team of analysts so you can feel safe picking any one of them to start investing with. If you aren’t ready to invest yet, keep reading to learn more.
How to buy PepsiCo stock, a step-by-step guide
The process of investing in a company is simple nowadays, so don’t worry, even if you’re new to stock investing. These are the steps to follow in order to complete your investment:
- Choose a broker. To get started, you need to use an online brokerage platform. There are many different options to choose from, each with its own unique benefits and drawbacks. The comparison table above can help you select the right broker for you, and you can head to our comprehensive broker reviews if you’re still unsure.
- Create an account. Once you’ve selected your broker, simply go to their website and create an account. The steps required for this will vary from platform to platform, but generally you can expect to have to provide your name, email address, phone number, and some form of photo identification.
- Deposit funds. Log into your broker account and select the option to deposit funds. Depending on your broker you’ll have a variety of payment options available; most brokers accept bank transfers and debit card payments, but not all accept e-wallets such as PayPal. Select your preferred payment method and deposit the amount of money you wish to invest in PepsiCo shares.
- Place an order for PEP stock. Now navigate to the stocks section on your chosen broker’s interface. Here you’ll be able to search for Pepsi’s ticker symbol (PEP) and see the current price at which the stock is trading. If you’re happy with the price, enter the number of shares you wish to purchase and place your order.
- Execute your order. Once you have placed your order, your broker will automatically execute it for you and your PepsiCo shares will be listed in your account. Congratulations, you’ve just bought shares in Pepsi!
What is PepsiCo? And should I invest?
PepsiCo is the second largest food and beverage business in the world behind Nestle. Founded way back in 1898 and best known for producing its namesake soft drink, Pepsi, the company now owns hundreds of different branded product lines.
Despite being defined by its battle for soft drink supremacy with the Coca-Cola Company, PepsiCo is now a lot more than that. Its portfolio includes a lot of variety in food as well as drink, with more than 20 different brands under its umbrella each boasting annual sales above $1bn.
That variety makes it an interesting option for if you’re looking for a defensive stock. PepsiCo has weathered tough economic environments, keeps growing, and is a member of the Dividend Aristocrats Club, having paid a dividend every year for half a century.
How has the company performed in recent years?
It hasn’t all been plain-sailing, but the trend is up. PepsiCo’s share price increased 30% between 2016 and 2021, which is good but not great: the S&P500 Index as a whole grew 90% over the same period.
The last few years have been tough for the flagship soft drink brands, with ‘sugar taxes’ hitting their most popular products and then a pandemic shuttering the biggest sources of demand. Where there has been falls in the share price, it’s been because of this type of external event: the UK sugar levy sparked one in 2018, COVID-19 another in 2020.
PepsiCo is a strong company though and it met these challenges well. Even during the pandemic, more demand for its snacks and cereals and a big increase in in-store sales meant it actually increased revenue in 2020.
Is it a good time to buy PepsiCo shares now?
There’s rarely been a bad time to invest in PepsiCo. It’s unlikely to give you huge, rapid growth, but it comes with few risks and a long history of solid performance. Investing in some blue-chip stocks like this is a good way to create a balanced portfolio.
The main thing to look out for if you do invest is more regulation as taxes on sugar are obviously bad if you make fizzy drinks. But at the same time PepsiCo has made big strides to protect itself against them, mostly through a series of acquisitions of healthier brands.
Buying up companies is how PepsiCo expands. Acquisitions like its purchase of Hangzhou Haomusi Food, a Chinese snack brand, constantly grow its global reach. The more of these the better, as it reduces the risk from any one government or region. You can use our market analysis to follow the latest developments:
Is March a good month for buying PepsiCo shares?
Is December a good month for buying PepsiCo shares?
Buying, selling and trading shares for beginners
What to do before buying shares
You should always take the time to research a stock fully before investing your money, especially if you haven’t bought shares before. The more knowledge you have, the better your chances of making a wise investment.
With that in mind, here’s a checklist to run through before investing in PepsiCo shares.
- Research the company. You should always examine the fundamentals of a company before investing. What is PepsiCo? How did the company get its start? How did it grow? Is PepsiCo’s revenue and profit growth picking up? Is the company innovating? The more you know about PepsiCo, the better positioned you’ll be to make smart investment decisions.
- Make sure you understand the basics of stock investing. Before getting involved in the stock market, make sure you have an understanding of how it works. This will ensure that you have more clearly defined goals and have thought through how you will achieve them.
- Decide between share dealing and CFD trading. Choose the type of investment strategy you want to pursue, and make sure you have carried out the necessary fundamental or technical analysis for share dealing and CFD trading respectively.
- Set the size of your budget. The golden rule of investing is never to risk more than you can afford to lose. Not every investment you make will result in a profit, so it is important to set a budget that not only allows good potential for capital growth, but also protects against overly damaging losses.
- Find the right broker. Individual brokers each have their own pros and cons. Some will have low fees but have a user interface you struggle to understand, whereas others may be a bit more expensive but come with a range of features that you want to take advantage of. Our broker reviews can help you find the right platform for you.
- Examine broader market conditions. No stock exists in a vacuum, and it’s always important to analyse the general trends of the stock market as a whole before investing. If a bear market is setting in and stock prices are falling, it’s best to wait it out and invest your money later when the stock is cheaper. If, however, the market is looking bullish, you’ll want to make your investment quickly to get the maximum benefit from rising stock prices. Our news section can help you keep on top of movements in the financial markets.
What is the difference between buying, selling, and trading shares?
If you’re new to stock investing, then it’s important to understand the basics of how to buy, sell, and trade Pepsi shares. Here’s a quick run-through of what’s involved in each.
This process involves finding a broker and placing an order for Pepsi stock, as outlined in the steps further up this page. Ideally you want to time your investment when the stock’s price is low so that you can profit by selling the shares after they increase in value.
When you sell any Pepsi shares you have bought, you’ll want to do so at a higher price than the one at which you bought to earn a profit.
When you sell is up to you. You might hold your shares for many years, hoping to benefit from the company growing steadily throughout. Or, if you see that PepsiCo’s stock is already up a lot compared to the price you bought it and you’ve noticed that the stock market is starting to fall, it might make sense to sell and take your profits to invest elsewhere. Equally, if the stock has fallen since you bought it and looks set to fall further, it might be a good idea to cut your losses by selling your shares.
Trading is the same process as buying and selling shares, it’s just done over shorter periods of time with the aim to make small profits on a regular basis. This means that you can make money faster and spend your profits in your day-to-day life – however, on the other side it means you can lose money faster as well. For inexperienced investors, we generally recommend making investments for at least 6 months to a year instead of making trades in quick succession.
You can trade PepsiCo shares outright or by using CFDs. These allow investors to speculate on stock prices and trade with leverage in pursuit of bigger gains. CFD trading is explained further in the next section, but it is worth noting that beginners should avoid trading with leverage. It comes with large risks and is best left to experienced investors.
Share dealing vs CFD trading
When it comes to investing in any stock, the two options you have are share dealing and trading. Which one of these methods to opt for largely depends on your investment timeline, with investors thinking long term tending to go for share dealing, and those looking for short term gains pursuing a more aggressive trading strategy.
Here’s a quick summary of the two approaches, and the pros and cons of each.
Share dealing refers to the practice of holding shares in a particular company over the long term. When investing like this, you’re seeking to profit either from dividend payments or an increase in the stock’s price over time.
When investing your money this way, it is important to do thorough fundamental analysis of the company in which you are investing. You want to put your money in a stock you believe will trend upwards over time, even if there is some market volatility along the way, rather than get distracted by shorter term peaks and troughs.
- Can build wealth over time to achieve financial goals
- Don’t need to be very reactive to short-term market movements
- Some stocks will give you an income through regular dividend payments
- Takes a long time to realise any profits
- Your capital is tied up in stocks and cannot be used for other investments
If your aim is to generate profits in the short term, then you might be better off trading shares than holding them in your portfolio. Stock trades like this are executed using CFDs (contracts for difference), which allow investors to trade against the value of a stock without having to take ownership of it. When CFD trading, investors are looking to buy and sell stocks fast to profit from short-term fluctuations in value.
One aspect of CFD trading that many investors find attractive is that they allow you to trade with leverage. This means you can place large trades while only putting up a fraction of the value yourself – for instance, if a platform offered leverage of 1:10, you could put £10 into PEP shares and be able to trade £100 worth. This can maximise profits if the market moves in your favour, but be careful as it can also lead to heavy losses.
When trading using CFDs, it is key to be skilled at technical analysis and reading stock price charts. As you’re trading stocks quickly and frequently, the fundamental strength of the company in which you’re investing isn’t as important as being able to predict how its stock price will rise and fall minute-by-minute.
- Can generate fast profits if you read the market right
- Some platforms allow you to trade with leverage
- Prevents your capital being tied up so you can take advantage of investment opportunities
- Trading with leverage is risky and can lead to big losses
- Doesn’t necessarily generate growth over the long term
Consider which approach suits you best and craft an investment strategy that works for you. If you need more information, then simply take our stock trading course and read our guide to CFD trading to get you up to speed.
If neither of these options appeal to you, then you can find a variety of other ways to invest in PEP stock on this page. If, however, you’re ready to get started, simply select one of the brokers in the table above and sign up.
How to choose a broker
With the wide variety of online brokers available these days, it can be hard to figure out which is the best service to go with. Our comparison table and in-depth reviews can help you cut through the noise, but by and large these are the aspects you should be considering when selecting a broker:
- Range of stocks available. The most important thing is that you can actually use the broker to purchase the shares you’re looking for. Some brokers offer more stocks than others, and many will allow you to trade other assets, such as commodities and cryptocurrency.
- Fees and commissions. You want to keep as large a chunk of your profits as you can, so it’s important to make sure your broker doesn’t charge high fees that can eat into your profits.
- Regulation. You should only use regulated brokers to place trades and purchase shares. Unregulated brokers can be risky and offer little to no protection if the business were to fail while you had funds in your account.
- Payment methods available. You might want to use a specific payment method, such as PayPal. Not all brokers accept every payment method, but by using our comparisons, you can search for the brokers that support the option you’re looking for.
- Reputation. One of the strongest indicators of a broker’s reliability is the reputation it has with the customers who have used it. Brokers are online businesses, and as such many user experiences can be found online. You can check these out in addition to our reviews to make sure you choose the right platform.
- Customer service. As you’re going to be investing your money using the platform, you want to check that the broker offers good customer service in case you have a query or something goes wrong.
Latest Pepsi news
PepsiCo Q2 results: ‘we’re focused on driving costs out of the business’
PepsiCo is a better buy than Coca-Cola on higher earnings and faster growth
Buy and hold PepsiCo as volatility remains low and dividends regular
Stock trading courses
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