Pepsi exploring options for its business units in Russia

Like dominoes they continue to fall.

Pepsi (PEP) has a current dividend yield of 2.88% and is rated as “Very Safe” by SimplySafeDividends. I hold PEP in my Low and Medium Yield Portfolios. In total PEP is 1.5% of my portfolio.

Large Western companies are under increasing pressure to pull out of the country in response to Russia’s invasion of Ukraine. PepsiCo is reluctant to shut down its Russian unit—which includes a large dairy business it bought for about $5 billion a decade ago—because tens of thousands of Russians depend on the company for their livelihoods and for daily essentials like milk and baby formula, the people familiar with the matter said.

Revenue from PepsiCo’s Russian unit was $3.4 billion in 2021, making it the third-largest market for the company after the U.S. and Mexico. The impact of writing off the Russian unit would be minimal because it contributes little to PepsiCo’s earnings, some of the people said.

PepsiCo Explores Options for Russian Business as Ukraine Crisis Deepens – WSJ