(PEP), (KO), (HANS) DOWN.....(DPS) trades up
Does this mean anything?
(PEP), (KO), (HANS) DOWN.....(DPS) trades up.
But this might:
(PEP) +5.56% Year To Date
(KO) -4.44% Year To Date
(HANS) +7.17 Year To Date
(DPS) +15.85% Year To Date
Now why do you suppose this is? PEP and KO are hurt by the fact they paid or will have to pay a large sum of $$$$ to DPS for their bottlers acquisitions.
HANS is a much more interesting conundrum today. It has been crushing earnings reports of late at a larger degree than DPS. Thus while HANS carries about 4 pts higher P/E ratio than DPS, it is justified!!!
In my opinion, the one thing that separates HANS from DPS is.....
HANS does not pay a dividend!!
HANS has far far far far far more cash on the balance sheet than DPS carrying 3.93 dollars per share of HANS. That is a truckload of cash of which NONE OF IT as of yet is going towards dividend payments.
HANS with a dividend should be 20 times earnings....easy.
There are other factors...sure....DPS could potentially get a significant payout after (KO) buys (CCE). Hans doesn't have the (PEP) $900 million that (DPS) has this quarter either.
But I think investors are looking at DPS and HANS from a "Value to Shareholders" perspective rather than a "Business Growth" perspective.
Both beverage company's are set to have tremendous growth this year and beyond.
But, HANS is set to have far better growth than DPS.
Personally, I think if I was a HANS investor instead of a DPS investor I would have already sent an e-mail letting the company know that us shareholders would like a dividend....please?
The YIELD percentage attach to a stock helps justify higher share prices inspite of any other news going on. That is why DPS can go higher... much higher this year...than HANS.
It is interesting to note that (DPS) has outperformed all 3 other beverage stock company's for at least 1 year and 1 quarter now.
How long will this trend continue? How long will HANS take before they finally provide dividends to shareholders?