NEW YORK (TheStreet) -- A drop in commodity prices, a differentiated product line and streamlined operations are helping Pepsico (PEP) - Get Report pull even further away from its rival Coca-Cola (KO) - Get Report, said Kate Warne, Investment Strategist from Edward Jones.
"We think they are very much focused on cutting costs and that's part of what is generating growth," said Warne. "We think that is really good news for investors because it's a diversified portfolio of snacks and drinks and that should give it the growth over time to support not only the current 3% yield but dividend growth and that's really attractive for investors right now."
Shares of Pepsi are up 2.2% so far in 2015 compared with a 3.9% drop in Coca Cola's stock.
Warne is also bullish on Time Warner's (TWX) stock, up 3% year to date, saying the media giant has been creating the right content at its HBO and Warner Brothers divisions. Furthermore, she said the company is finding ways for viewers to watch their favorite shows at their convenience.
"They are focused on getting that content where the customer wants to see it, not just on cable but on your phone and every place else," said Warne. "We think that's key to their growth over time."
Another stock Warne likes is United Technologies (UTX) - Get Report, which saw its shares get slammed 7% last week after it reported soft sales in China. Warne acknowledged the company's potential China problem, but advised investors to buy the dip.
"We think with United Technologies what they have done is repositioned the portfolio," said Warne. "They are focused on growth over time and they have a good dividend yield."
"It certainly is pricey compared to its recent history but compared to its long term history it is in line," said Warne. "We think it's got really good potential earnings growth and we like the fact there is a lot of growth in the rest of the world and Visa keeps delivering."