Dr Pepper Snapple Gets Serious About Dividends

Dr. Pepper Snapple [[DPS]] announced yesterday that the company will dramatically increase their dividend by 67%. The quarterly dividend payment will increase from $.15 per share to $.25 per share.

 

Following the dividend increase, DPS stock will yield 2.6% based on yesterday’s closing price.

 

Earlier this month, the company reported first quarter earnings that were $.02 ahead of Wall Street’s expectations and increased their full year 2010 forecast.

 

The impressive dividend hike shows that Dr. Pepper Snapple is getting serious about dividends. The soft drink maker has long trailed both Coca Cola with their 3.3% dividend yield and Pepsi [[PEP]] and their 2.9% yield. This 67% dividend increase now puts DPS stock in the same ballpark as their top competitors and is likely to now attract the interest of income investors.

 

The dividend will be payable on July 9, 2010, to shareholders of record as of June 21, 2010.

 

Dr. Pepper Snapple shares have been on a very nice run since the beginning of 2010, with the stock price gaining 35% and easily outperforming the 1.9% decline in the S&P 500.

 

The company manufactures and distributes Dr. Pepper, Snapple, Sunkist soda, 7UP, A&W Root Beer, Canada Dry ginger ale and other non-alcoholic drinks.

 

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There is one response to Dr Pepper Snapple Gets Serious About Dividends

  1. Five Dividend Stocks to Consider for 2011 | MostTalkedNews.com:
    December 29th, 2010 at 10:13 pm

    […] this year. DPS shares soared 27% in 2010 and the beverage stock delivered an impressive 67% dividend increase in May. We are looking for another strong year from Dr. Pepper Snapple in 2011 with earnings […]

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