Another Dividend Increase From The Food Sector

About: (DPS, Dr. Pepper Snapple Group, KO, Coca-Cola, PEP, PepsiCo)

Dr. Pepper is a Texas icon, so we were excited to see Dr. Pepper Snapple Group (NYSE: DPS) announce its first-ever quarterly dividend on Friday November 20, 2009. The company will pay 15 cents a share starting on January 8, 2010 to shareholders of record on December 21. Dr. Pepper Snapple, which makes the brands included in its name as well as 7Up and Sunkist, also said it will repurchase $200 million of its own stock.

            While neither the dividend nor the buyback represent big numbers, investors should view these actions as encouraging signs because Dr. Pepper is a relatively new public company. The shares have been trading for just 18 months, but it appears the company is making shareholder value a top priority.        We’ve talked a lot about food dividends lately and it bears noting that beverage makers such as Coca-Cola (NYSE: KO) and PepsiCo (NYSE: PEP) have some of the strongest dividend histories on Wall Street. Dr. Pepper Snapple appears to be following suit.