Keurig Dr Pepper Raises Annual Dividend by 25% to 75 Cents

By Dave Sebastian

Keurig Dr Pepper Inc. said it has approved a 25% increase in its annual dividend to 75 cents a share, effective with its regular quarterly dividend to be announced in the second quarter.

The soda and coffee-systems company on Thursday said it expects dividend payout ratio to remain less than 50% of free cash flow despite the dividend increase.

The increase will result in a 12.5% growth in dividends paid in 2021 and an 11.1% increase in dividends paid in 2022, the company said.

"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," Finance Chief and President Ozan Dokmecioglu.

Write to Dave Sebastian at dave.sebastian@wsj.com

(END) Dow Jones Newswires

February 25, 2021 06:29 ET (11:29 GMT)

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