The shareholders ofDr Pepper Snapple Group (
) have enjoyed strong capital gains to go with a steadily rising
The stock is up 22% this year, far outpacing the S&P 500's
7% increase. Furthermore, the company has raised its dividend
every year since being spun off from British confectioner Cadbury
Schweppes in 2008. Its three- to five-year dividend growth rate
The latest increase was announced in February, when the Plano,
Texas-based company hiked the quarterly payout by 7.9% to 41
cents a share, or $1.64 annually.
That works out to an annual dividend yield of 2.8% at the
current share price, a nice premium to the S&P's average of
Dr Pepper Snapple, whose roots go back to 1885, owns more than
They include its namesake beverages as well as 7UP, A&W,
Canada Dry, Crush and Hawaiian Punch.
As with many well-established companies, profit growth has
been slow but steady.
The stock's five-year Earnings Stability Factor is 5 on a
scale of 0 (most stable) to 99 (least stable).
Dr Pepper Snapple will report Q2 earnings before the market
opens July 24. Analysts expect profit to rise 7% from the same
period last year to 90 cents a share. That's down from Q1's 40%
jump, which was much better than expected.
Profit for the full year is forecast to rise 8%, just shy of
the company's three-year annualized EPS growth rate of 9%.
Revenue has alternated from 1% gains to 1% declines the past
Q2 is expected to be no different, with revenue rising 1% to
Dr Pepper Snapple cleared a flat base in heavy volume on Feb.
12 and is testing support at the 10-week line for the second time
since the breakout. While that normally puts the stock in a
follow-on buy area, investors should be cautious now that the
market's uptrend has come under pressure.