It was just yesterday that we noted how dividend investors were preferring the growth shares of Dr. Pepper Snapple Group, Inc. (NYSE: DPS) over larger rivals like The Coca-Cola Company (NYSE: KO) and Pepsico, Inc. (NYSE: PEP). Apparently Coca-Cola wants that to change, even if the growth of Dr. Pepper is still above that of Coke and Pepsi.
The Coca-Cola Company has approved a dividend hike. This is not just a dividend hike, it is the 50th consecutive dividend hike. Today’s hike was by 8.5% to $0.51 per quarter from $0.47 per quarter, or annualized rates of $2.04 per share rather than $1.88 per share.
As far as what this mean, the 3.5% yield for Dr. Pepper shares now compares to a yield of about 2.96% for Coca-Cola. Dr. Pepper still has the growth, but it also is still yielding higher.
Coca-Cola’s management noted, “The increase reflects the Board’s confidence in the Company’s long-term cash flow. The Company returned $8.6 billion to shareowners in 2011, through $4.3 billion in dividends and $4.3 billion in share repurchases.”
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