Fintel reports that on August 16, 2023, UBS upgraded their outlook for Keurig Dr Pepper (NASDAQ:KDP) from Neutral to Buy.

Analyst Price Forecast Suggests 16.92% Upside

As of August 2, 2023, the average one-year price target for Keurig Dr Pepper is 39.13. The forecasts range from a low of 30.30 to a high of $47.25. The average price target represents an increase of 16.92% from its latest reported closing price of 33.47.

See our leaderboard of companies with the largest price target upside.

The projected annual revenue for Keurig Dr Pepper is 14,921MM, an increase of 2.43%. The projected annual non-GAAP EPS is 1.85.

Keurig Dr Pepper Declares $0.20 Dividend

On May 16, 2023 the company declared a regular quarterly dividend of $0.20 per share ($0.80 annualized). Shareholders of record as of June 30, 2023 received the payment on July 14, 2023. Previously, the company paid $0.20 per share.

At the current share price of $33.47 / share, the stock’s dividend yield is 2.39%.

Looking back five years and taking a sample every week, the average dividend yield has been 2.18%, the lowest has been 1.87%, and the highest has been 3.46%. The standard deviation of yields is 0.23 (n=236).

The current dividend yield is 0.94 standard deviations above the historical average.

Additionally, the company’s dividend payout ratio is 0.70. The payout ratio tells us how much of a company’s income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company’s income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend – not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.

The company’s 3-Year dividend growth rate is 0.33%, demonstrating that it has increased its dividend over time.

What is the Fund Sentiment?

There are 1448 funds or institutions reporting positions in Keurig Dr Pepper. This is a decrease of 53 owner(s) or 3.53% in the last quarter. Average portfolio weight of all funds dedicated to KDP is 0.33%, a decrease of 7.74%. Total shares owned by institutions increased in the last three months by 0.73% to 961,042K shares. The put/call ratio of KDP is 1.25, indicating a bearish outlook.

What are Other Shareholders Doing?

Capital International Investors holds 51,596K shares representing 3.69% ownership of the company. In it’s prior filing, the firm reported owning 51,205K shares, representing an increase of 0.76%. The firm decreased its portfolio allocation in KDP by 4.46% over the last quarter.

Wellington Management Group Llp holds 41,504K shares representing 2.97% ownership of the company. In it’s prior filing, the firm reported owning 39,827K shares, representing an increase of 4.04%. The firm decreased its portfolio allocation in KDP by 87.56% over the last quarter.

Capital World Investors holds 40,839K shares representing 2.92% ownership of the company. In it’s prior filing, the firm reported owning 35,379K shares, representing an increase of 13.37%. The firm increased its portfolio allocation in KDP by 10.74% over the last quarter.

Capital Research Global Investors holds 26,429K shares representing 1.89% ownership of the company. In it’s prior filing, the firm reported owning 46,021K shares, representing a decrease of 74.13%. The firm decreased its portfolio allocation in KDP by 46.35% over the last quarter.

AWSHX – WASHINGTON MUTUAL INVESTORS FUND holds 26,306K shares representing 1.88% ownership of the company. In it’s prior filing, the firm reported owning 23,739K shares, representing an increase of 9.76%. The firm increased its portfolio allocation in KDP by 3.11% over the last quarter.

Keurig Dr Pepper Background Information
(This description is provided by the company.)

Keurig Dr Pepper (KDP) is a leading beverage company in North America, with annual revenue in excess of $11 billionand nearly 26,000 employees. KDP holds leadership positions in soft drinks, specialty coffee and tea, water, juice and juice drinks and mixers, and markets the #1 single serve coffee brewing system in the U.S. and Canada. The Company’s portfolio of more than 125 owned, licensed and partner brands is designed to satisfy virtually any consumer need, any time, and includes Keurig®, Dr Pepper®, Green Mountain Coffee Roasters®, Canada Dry®, Snapple®, Bai®, Mott’s®, CORE® and The Original Donut Shop®. Through its powerful sales and distribution network, KDP can deliver its portfolio of hot and cold beverages to nearly every point of purchase for consumers. The Company is committed to sourcing, producing and distributing its beverages responsibly through its Drink Well. Do Good. corporate responsibility platform, including efforts around circular packaging, efficient natural resource use and supply chain sustainability.

This article originally appeared on Fintel

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