Dividend Growth Investors Should Look At Dr Pepper

Overview There have been several articles on Seeking Alpha and other sites comparing Coca-Cola (KO) against PepsiCo (PEP), but I think too many investors overlook Dr Pepper Snapple Group (DPS) as a great long term dividend investment option. In this article, I'm going to go through various reasons why even though I currently own a small position of KO, I believe that investors looking to initiate new positions are better served in looking at DPS based on recent results.
Price Appreciation and Valuation One of the main reasons I believe that Dr Pepper Snapple Group is the best option out of the three is it's current price. Looking at the chart below, you can see that the stock has not performed well so far this year, losing over 2% during that time.

However, I feel that this has created a great buying opportunity for long term investors. Looking at price appreciation over the past three, five, and ten year periods, you can see that Dr Pepper Snapple Group has significantly outperformed Coca-Cola and PepsiCo throughout those periods even with its recent downturn.



In addition to strong price appreciation, Dr Pepper Snapple Group also seems to be valued more attractively than Coca-Cola or PepsiCo based on a number of valuations such as PE ratio, Price to Book Value, and Price to Free Cash Flow.



Revenue In terms of revenue growth, Dr Pepper is the only stock out of the three to have seen positive growth over the past... Read more

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