This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Dr Pepper Refreshes With Dividend Boost

NEW YORK (TheStreet) -- With all the talk of a new home soda system from Green Mountain Coffee Roasters(GMCR) and Coca-Cola(KO - Get Report), investors probably missed the news that Dr Pepper Snapple Group(DPS) announced on Thursday that it is raising its quarterly dividend by 8% to 41 cents a share from 38 cents.

Investors may want to check out the nation's No. 3 soda company, with its dividend yield of 3.2% and a lower price-to-earnings ratio than rivals Coke and PepsiCo(PEP - Get Report).

While Dr Pepper is much smaller than Coke and Pepsi in revenue, its dividend yield is higher -- Coke's is 2.8%, Pepsi's 2.9% -- and its P-E ratio is 15.5, compared with Coke's 19.7 and Pepsi's 18.6. Dr Pepper also has a lower price-to-sales ratio (1.51) than Coke (3.56) and Pepsi (1.8). And Dr Pepper has increased its dividend annually since 2009.

Among the company's 50 brands are Dr Pepper, Snapple, Sunkist, Squirt and A&W. It has six of the top 10 non-cola soft drinks. Thirteen of the company's top 14 brands hold a No. 1 or No. 2 market position in their categories.

Must Read: Surprise! The US is due for a recession in 2014

While Coke offers growth with its line of non-carbonated drinks and now a stake in Green Mountain Coffee Roasters and Pepsi offers growth from its snack line, which could eventually be spun off into a separate company, Dr Pepper gives investors income and steady earnings.

The company continues to cut costs and increase its profit. Value and income investors should consider a trip to the Dr.

At the time of publication, the author had no position in any of the stocks mentioned.

This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.

Chris Katje has been fascinated with the stock market since a young age. That passion turned into a freelance writing career that began in 2008. Mr. Katje has seen his work appear on Seeking Alpha, the Motley Fool, The Street, and Variety. Chris's annual top ten stock picks list continues to beat the market and grow in popularity. You can follow Chris on Twitter (@chriskatje).

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
KO $45.31 0.55%
PEP $104.97 0.73%
AAPL $92.69 -0.59%
FB $119.49 1.43%
GOOG $711.11 1.40%


Chart of I:DJI
DOW 17,740.63 +79.92 0.45%
S&P 500 2,057.14 +6.51 0.32%
NASDAQ 4,736.1550 +19.0610 0.40%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs