Keurig Dr Pepper, Inc (NASDAQ:KDP) Announces Quarterly Dividend of $0.23

Key Points

• Keurig Dr Pepper declared a quarterly dividend of $0.23 per share, payable October 9 to shareholders of record on September 28. The dividend implies an annualized payout of $0.92 and a 2.9% yield.
• The dividend appears supported by earnings, with a current payout ratio of 42.4% and an expected future payout ratio of 36.5%. The company has raised its dividend for four consecutive years.
• Keurig Dr Pepper exceeded quarterly expectations, reporting $0.57 in adjusted EPS and $7.31 billion in revenue. Analysts maintain a “Moderate Buy” consensus rating with a $35 average price target.

Keurig Dr Pepper, Inc (NASDAQ:KDP - Get Free Report) declared a quarterly dividend on Wednesday, September 16th. Stockholders of record on Monday, September 28th will be given a dividend of 0.23 per share on Friday, October 9th. This represents a c) annualized dividend and a dividend yield of 2.9%. The ex-dividend date of this dividend is Monday, September 28th.

Keurig Dr Pepper has increased its dividend by an average of 0.1%per year over the last three years and has raised its dividend every year for the last 4 years. Keurig Dr Pepper has a payout ratio of 42.4% meaning its dividend is sufficiently covered by earnings. Analysts expect Keurig Dr Pepper to earn $2.52 per share next year, which means the company should continue to be able to cover its $0.92 annual dividend with an expected future payout ratio of 36.5%.

Keurig Dr Pepper Trading Up 1.0%

Shares of KDP opened at $31.80 on Thursday. The business has a 50-day moving average of $31.18 and a 200 day moving average of $29.72. Keurig Dr Pepper has a fifty-two week low of $24.88 and a fifty-two week high of $33.82. The firm has a market cap of $43.27 billion, a P/E ratio of 32.12, a price-to-earnings-growth ratio of 1.48 and a beta of 0.40. The company has a debt-to-equity ratio of 0.74, a quick ratio of 0.28 and a current ratio of 0.48.

Keurig Dr Pepper (NASDAQ:KDP - Get Free Report) last announced its quarterly earnings data on Thursday, August 6th. The company reported $0.57 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.54 by $0.03. The business had revenue of $7.31 billion for the quarter, compared to analysts' expectations of $7.23 billion. Keurig Dr Pepper had a return on equity of 10.80% and a net margin of 7.10%.The firm's quarterly revenue was up 75.6% compared to the same quarter last year. During the same period in the previous year, the business posted $0.49 EPS. As a group, research analysts forecast that Keurig Dr Pepper will post 2.3 EPS for the current year.

Wall Street Analyst Weigh In

A number of research firms have recently commented on KDP. Royal Bank Of Canada reaffirmed an "outperform" rating and issued a $42.00 price target on shares of Keurig Dr Pepper in a report on Tuesday, August 4th. Weiss Ratings reissued a "hold (c)" rating on shares of Keurig Dr Pepper in a report on Friday, August 7th. Morgan Stanley initiated coverage on Keurig Dr Pepper in a research report on Thursday, August 20th. They issued an "overweight" rating and a $38.00 price objective on the stock. UBS Group raised their target price on shares of Keurig Dr Pepper from $38.00 to $39.00 and gave the company a "buy" rating in a research note on Friday, August 7th. Finally, Sanford C. Bernstein set a $39.00 target price on shares of Keurig Dr Pepper in a research report on Wednesday, July 8th. Twelve analysts have rated the stock with a Buy rating and eight have issued a Hold rating to the company's stock. According to MarketBeat, Keurig Dr Pepper currently has a consensus rating of "Moderate Buy" and a consensus price target of $35.00.

About Keurig Dr Pepper

Keurig Dr Pepper Inc NASDAQ: KDP is a beverage company that operates across the refreshment beverage and coffee categories. The company develops, manufactures, distributes and markets a broad portfolio of soft drinks, flavored beverages, juices, water and mixers, as well as single-serve coffee products and brewing systems.

Its beverage portfolio includes brands such as Dr Pepper, Canada Dry, 7UP, A&W, Snapple, Mott's, Bai and CORE Hydration. In coffee, Keurig Dr Pepper offers Keurig brewing systems, pods and related products under brands including Green Mountain Coffee Roasters and The Original Donut Shop.

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