BURLINGTON, Mass. and
PLANO, Texas, Feb. 25, 2021 /PRNewswire/ -- Keurig Dr
Pepper (NASDAQ: KDP) announced today that its Board of Directors
has approved a 25% increase in its annualized dividend rate to
$0.75 per share, from the current
annualized rate of $0.60 per share,
effective with the Company's regular quarterly dividend to be
announced in the second quarter of 2021, subject to official
declaration by the Board of Directors. This 25% increase will
result in growth of 12.5% in dividends paid in 2021 and another
11.1% increase in dividends paid in 2022, given the calendar timing
of both the increase and dividend payments. Due to KDP's strong
free cash flow generation and despite the 25% annualized dividend
increase, the Company's dividend payout ratio is expected to remain
less than 50% of free cash flow.
KDP also announced that its Board of Directors has declared a
regular quarterly cash dividend of $0.15 per share, payable in U.S. dollars, on the
Company's common stock. The regular quarterly dividend will be paid
on April 15, 2021 to shareholders of
record on April 1, 2021.
Commenting on the announcement, Keurig Dr Pepper CFO and
President, International, Ozan
Dokmecioglu, stated, "We have rapidly reduced our leverage
since the merger and are now in the position to also allocate
additional capital to shareholders, while continuing to reinvest in
the business. The exceptional free cash flow generation of KDP
enables us this flexibility without compromising our ability to
continue to reduce leverage to our targeted level by
year-end."
Investors:
Tyson
Seely
781-418-3352/ tyson.seely@kdrp.com
Steve Alexander
972-673-6769/ steve.alexander@kdrp.com
Media:
Katie Gilroy
781-418-3345/ katie.gilroy@kdrp.com
ABOUT KEURIG DR PEPPER
Keurig Dr Pepper (KDP) is a
leading beverage company in North
America, with annual revenue in excess of $11 billion and nearly 27,000 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. For more information, visit,
www.keurigdrpepper.com.
FORWARD LOOKING STATEMENTS
Certain statements
contained herein are "forward-looking statements" within the
meaning of applicable securities laws and regulations. These
forward-looking statements can generally be identified by the use
of words such as "outlook," "guidance," "anticipate," "expect,"
"believe," "could," "estimate," "feel," "forecast," "intend,"
"may," "plan," "potential," "project," "should," "target," "will,"
"would," and similar words, phrases or expressions and variations
or negatives of these words, although not all forward-looking
statements contain these identifying words. Forward-looking
statements by their nature address matters that are, to different
degrees, uncertain, such as statements regarding the estimated or
anticipated future results of the combined company following the
combination of Keurig Green Mountain, Inc. ("KGM") and Dr Pepper
Snapple Group, Inc. ("DPS" and such combination, the
"transaction"), the anticipated benefits of the transaction,
including estimated synergies and cost savings, the long-term
merger targets, and other statements that are not historical facts.
These statements are based on the current expectations of our
management and are not predictions of actual performance.
These forward-looking statements are subject to a number of
risks and uncertainties regarding the company's business and the
transaction and actual results may differ materially. These risks
and uncertainties include, but are not limited to: (i) the impact
the significant additional debt incurred in connection with the
transaction may have on our ability to operate our business, (ii)
risks relating to the integration of the KGM and DPS operations,
products and employees into the combined company and assumption of
certain potential liabilities of KGM and the possibility that the
anticipated synergies and other benefits of the transaction,
including cost savings, will not be realized or will not be
realized within the expected timeframe, (iii) the impact of the
global COVID-19 pandemic, and (iv) risks relating to the businesses
and the industries in which our combined company operates. These
risks and uncertainties, as well as other risks and uncertainties,
are more fully discussed in the Company's filings with the SEC,
including our Annual Report on Form 10-K and subsequent filings.
While the lists of risk factors presented here and in our public
filings are considered representative, no such list should be
considered to be a complete statement of all potential risks and
uncertainties. Any forward-looking statement made herein speaks
only as of the date of this document. We are under no obligation
to, and expressly disclaim any obligation to, update or alter any
forward-looking statements, whether as a result of new information,
subsequent events or otherwise, except as required by applicable
laws or regulations.
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SOURCE Keurig Dr Pepper