Is The Coca-Cola Company (KO) A Good Buy Now?

On the other hand, Dr Pepper Snapple Group Inc. (NYSE:DPS) is also a solid company. It is ranked as the No. 3 player in the non-alcoholic beverage market. Dr Pepper Snapple lacks some of the economies of scale enjoyed by its larger competitors. Its revenue growth is also stagnant; however, it has been able to convert sales into earnings at better margins relative to the industry average. Still, in the past five years, it has been able to increase its dividends by 153%. It is also trading at a discount compared to PepsiCo and Coca-Cola.

Final Notes

Companies in the beverage industry offer consistent dividends with regular raises and steady price appreciation. Coca-Cola is one of the top players in the beverage industry. The company offers consistently increasing dividends with steady price appreciation. The company has a solid financial position to support and sustain growing returns. With its upcoming shift in business model, I believe the company is well-positioned to sustain its returns.

The article A Solid Pick for Both Dividend and Value Investors originally appeared on Fool.com and is written by siraj sarwar.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.