Coke Wants To Go After Dr. Pepper Dividend Investors (KO, PEP, DPS)
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…
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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Jon Ogg has been a financial news analyst since 1997. Mr. Ogg set up one of the first audio squawk box services for traders called TTN, which he sold in 2003. He has previously worked as a licensed broker to some of the top U.S. and E.U. financial institutions, managed capital, and has raised private capital at the seed and venture stage. He has lived in Copenhagen, Denmark, as well as New York and Chicago, and he now lives in Houston, Texas. Jon received a Bachelor of Business Administration in finance at University of Houston in 1992. www.247wallst.com.
