F our food and beverage stocks with a history of growing dividends are working on bases.Dr Pepper Snapple ( DPS ) is consolidating after a big run in 2014, when it gained 47% in steady fashion. The company is a leading producer of carbonated and non-carbonated beverages, including Dr Pepper, Snapple, 7UP, A&W, Canada Dry and Hawaiian Punch. IBD calculates an annual dividend growth of 15% and a 2.5% current yield.
The stock has drifted below its 50-day line but is shaping a flat base with an 81.55 buy point.
On Feb. 5, the Plano, Texas-based firm announced a 17% increase in its dividend to 48 cents a share. The dividend is payable April 7 to holders of record as of March 16.
RivalPepsiCo ( PEP ) is trading near its 40-week moving average and working on a flat base. The pattern shows a 100.80 buy point. Sales growth at the food and beverage giant has been sluggish lately, not topping 2% over the past 11 quarters. PepsiCo brands include Quaker Oats, Lays, Pepsi and Mountain Dew.
By market cap, PepsiCo is nearly 10 times the size of Dr Pepper Snapple. Both stocks are about 6% off their 52-week highs.
Shares ofCampbell Soup ( CPB ) have slumped since reporting that fiscal-second quarter earnings fell 13% on a 2% drop in sales on Feb. 25. Still, shares have found support at the 40-week line and the stock boasts a dividend growth rate of 8% and a 2.8% current yield. Company brands include Campbell’s, Pepperidge Farm, Goldfish, V8 and Swanson.
ConAgra Foods ( CAG ) has the highest yield of the bunch at 2.9%. On its website, ConAgra claims its brands, which include Jiffy Pop, Chef Boyardee, Healthy Choice and Marie Callender’s, can be found in 99% of American households. The Omaha, Neb.-based firm will report fiscal third-quarter results next Thursday, March 26. Analysts expect earnings per share of 52 cents, down 16% from the prior year.
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