KDP - Coca-Cola and PepsiCo push higher as investors look to beverage stocks for safety

2023-03-13 11:13:40 ET

The collapse of Silicon Valley Bank has sent investors scrambling out of tech and financial stocks seen at risk amid a general risk-off market sentiment.

Following the dramatic banking developments over the weekend, beverage stocks are outperforming with PepsiCo ( NASDAQ: PEP ) +2.45% , Coca-Cola ( KO ) +2.33% , National Beverage Corp ( FIZZ ) +1.95% , Brown-Forman ( BF.A ) +1.50% , Monster Beverage ( MNST ) +1.25% , Diageo ( DEO ) +1.11% , and Keurig Dr Pepper ( KDP ) +1.05% all notably higher than broad market averages.

While analysts have been warning on valuation in the sector, the fortress balance sheets and dividend payouts of PepsiCo ( PEP ) and Coca-Cola ( KO ) have made them attractive alternatives with the financial and macro worlds disheveled.

The Invesco Dynamic Food & Beverage ETF ( PBJ ) is up 0.90% on the day to top major market indexes.

Read more about how consumer staples in general are outperforming.

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