Keurig Dr Pepper Increases Dividend by 6.7% for 2022

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Keurig Dr Pepper($NASDAQ:KDP) has announced a 6.7% increase in its annual dividend for 2022, bringing the total annual rate to $0.80 per share. This is the second dividend increase announced by the company this year, following a previous increase in February 2021. Combined, these two increases will result in a 13% increase in cash dividends paid out by Keurig Dr Pepper in 2022 compared to the previous year. This is a strong show of confidence by the company in its long-term prospects and ability to generate consistent cash flow for shareholders.

Dividends

This means that shareholders will receive a dividend of 0.75 USD per share for the second quarter of the fiscal year. This is an increase from the 0.71 USD and 0.6 USD dividends that were paid out in the last two years. Despite the recent economic downturn, KEURIG DR PEPPER has been able to maintain a strong dividend yield, with yields of 2.1%, 1.98%, and 2.12% in 2020, 2021, and 2022 respectively. If you are looking for dividend stocks to add to your portfolio, KEURIG DR PEPPER is definitely one to consider.

Stock Price

On Wednesday, shares of Keurig Dr Pepper Inc closed up slightly, by 0.1% at $37.7 per share. This followed the release of the company’s earnings report for the fourth quarter of 2020. Quarterly revenue and adjusted earnings per share both beat analyst expectations. These results were driven by strong performance in the company’s at-home beverage business, which offset weakness in the out-of-home business due to the pandemic. Looking ahead, Keurig Dr Pepper expects continued growth in the at-home business, as well as a gradual recovery in the out-of-home business as the pandemic subsides.

VI Analysis

A company’s fundamentals reflect its long term potential. Based on VI Risk Rating, KEURIG DR PEPPER is a medium risk investment in terms of financial and business aspects. Financial risks are mainly due to the company’s high leverage and Interest Coverage Ratio being below our ideal level. Business risks are mainly due to the company’s declining organic sales growth and high competition in the single serve coffee market. However, the company’s strong brand recognition and recent acquisitions give it a good chance to turnaround its business. You may check out what are the business and financial areas presenting potential risks in our website.

Summary

KDP’s dividend payout ratio is well below its peers and the company has plenty of room to continue growing its dividend in the future. KDP is a strong cash flow generating business and has consistently increased its free cash flow in recent years. Investors looking for a dividend growth stock with a long history of increases and plenty of room to continue growing its dividend should consider Keurig Dr Pepper . KDP is a strong cash flow generating business and has increased its free cash flow in recent years.