4-Star Stocks Poised to Pop: Dr Pepper Snapple

Updated

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, nonalcoholic beverage specialist Dr Pepper SnappleGroup (NYS: DPS) has earned a respected four-star ranking.

With that in mind, let's take a closer look at Dr Pepper Snapple and see what CAPS investors are saying about the stock right now.

Dr Pepper Snapplefacts

Headquarters (founded)

Plano, Texas (2007)

Market Cap

$9.3 billion

Industry

Soft drinks

Trailing-12-Month Revenue

$5.9 billion

Management

CEO Larry Young (since 2007)
CFO Martin Ellen (since 2010)

Return on Equity (average, past 3 years)

21%

Cash/Debt

$203.0 million / $2.7 billion

Dividend Yield

3.1%

Competitors

Coca-Cola
Monster Beverage
PepsiCo


Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 93% of the 419 members who have rated Dr Pepper Snapple believe the stock will outperform the S&P 500 going forward.

A few months ago, one of those bulls, hend6, tapped the stock as a refreshing income opportunity:

A healthy dividend, among the highest yielding among competitors, along with a number of strong brand names should see this creep up with the others either at or ahead of the market pace. I would expect that if the market does begin to head downward, [Dr Pepper Snapple] will buffer against it and not tremendously drop.

If you want market-beating returns, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future. Of course, despite its four-star rating, Dr Pepper Snapple may not be your top choice.

If that's the case, we've compiled a special free report for investors called "The 3 Dow Stocks Dividend Investors Need," which uncovers a few other juicy income opportunities. The report is 100% free, but it won't be around forever, so click here to access it now.

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At the time thisarticle was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. The Motley Fool owns shares of Coca-Cola and PepsiCo. Motley Fool newsletter services have recommended buying shares of Coca-Cola, Monster, and PepsiCo, as well as creating a diagonal call position in PepsiCo. Try any of our Foolish newsletter services free for 30 days.We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.

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