Share price of
Dr Pepper Snapple Group, Inc.
) spiked 2.15% to $48.89, following the recent increase in its
The board of directors of Dr Pepper Snapple, a Texas-based
beverage company, approved a 7.9% increase in its quarterly
dividend late last week.
The quarterly dividend was increased from 38 cents to 41 cents
per common share, equivalent to an annual dividend of $1.64 per
share for fiscal 2014, up from $1.52 per share for fiscal 2013.
The new dividend will yield 3.4% annually. The first quarterly
dividend will be paid on Apr 4, 2014, to shareholders as of Mar
Driving shareholders' value, either through regular share
repurchases or increased dividends, is Dr Pepper's key objective.
As of Sep 2013, the company returned $468 million to
shareholders, of which $243 million was returned as share
repurchases and $225 million as dividends. The company achieves
this objective through its solid balance sheet and strong free
cash flow. The company had $119 million of cash and cash
equivalents as of Sep 30, 2013.
Dr Pepper Snapple will report its fourth quarter and full year
2013 financial results on Feb 12, 2013. The Zacks Consensus
earnings estimate for the fourth quarter 2013 is 85 cents and
revenue estimate is $1.48 billion.
For full-year 2013, Dr Pepper expects adjusted earnings per share
in the range of $3.04 to $3.12, which is in line with the Zacks
Consensus estimate of $3.09. However due to continued CSD
category headwinds, Dr Pepper expects its 2013 sales to remain
flat year over year, much below the company's long-term
The Zacks Consensus revenue estimate for full year 2013 is
$6.01 billion. Sales volume is expected to decline around 2%.
Price/mix is expected to be up about 2.5%.
COCA-COLA ENTRP (CCE): Free Stock Analysis
DR PEPPER SNAPL (DPS): Free Stock Analysis
MONSTER BEVERAG (MNST): Free Stock Analysis
WHITEWAVE FOODS (WWAV): Free Stock Analysis
To read this article on Zacks.com click here.
Dr Pepper carries a Zacks Rank #4 (Sell). However, some
better-ranked beverage stocks include
The WhiteWave Foods Co.
Monster Beverage Corp.
Coca-Cola Enterprises Inc.
). All the three companies carry a Zacks Rank #2 (Buy).