P4.5B for Pepsi-Cola’s expansion

PEPSI-COLA Products Philippines Inc. (market symbol: PIP) may be keeping too much retained earnings, which, as of March 31, stood at more than P7.228 billion.

If you happen to be a stockholder of the cola company and are in the stock market for dividends, you won’t like a listed stock good only for speculation. Pepsi-Cola, though, has a reason to keep more than P7.228 billion in its books because it is using the accumulated net profits for expansion.