The Coca-Cola Company (KO): Has National Beverage Corp. (FIZZ) Become the Perfect Stock?

The big news for National Beverage Corp. (NASDAQ:FIZZ) was its decision to pay a special dividend of $2.55 per share in November, which, at the time, represented more than 17% of the share price. But, much of the benefit went to CEO Nick Caporella, who directly or indirectly owns 74% of the company’s shares, and therefore reaped roughly $87 million from the special dividend. Interestingly, the share price rose by roughly the amount of the dividend right after its announcement, and the stock traded at about the pre-announcement level after making its payout.

For National Beverage Corp. (NASDAQ:FIZZ) to improve, it needs to pay down the $60 million it borrowed in the past quarter, which presumably went toward financing the special dividend. From there, the big question will be whether it can keep outperforming its larger rivals and produce higher profits. In all likelihood, National Beverage Corp. (NASDAQ:FIZZ) will stay small, and not advance much further toward perfection.

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The article Has National Beverage Become the Perfect Stock? originally appeared on Fool.com is written by Dan Caplinger.

Fool contributor Dan Caplinger has no position in any stocks mentioned. The Motley Fool recommends Coca-Cola.

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