PepsiCo (PEP) is a mega-cap dividend aristocrat that is quite popular on Seeking Alpha. Just as a summary to the uninitiated, PEP is a brand holding company that houses some of the best-known brands in supermarkets and convenience stores such as the ones below:
Source: Product Information
While it's got a long and illustrious history of operating cash flow growth and dividend growth, do the financial statements justify such bullishness? As we will find out, the answer will be a "no". This is despite PEP's excellent recent market performance:
Let's first look at