U.S. Markets close in 37 mins

What’s behind Dr Pepper Stock’s Outperformance in the First Half?

Adrian Stevens
What’s behind Dr Pepper Stock’s Outperformance in the First Half?

Shares of Dr Pepper Snapple (DPS) jumped 25.7% in the first half of 2018, outperforming the Consumer Staples Select Sector SPDR ETF (XLP) and the benchmark S&P 500 Index (SPX) thanks to the Keurig Green Mountain merger it announced in January. According to the terms of the deal, which is expected to close on July 9, shareholders of Dr Pepper Snapple will receive a special cash dividend of $103.75 per share and retain a 13% stake in the combined company, called Keurig Dr Pepper. The combination of the two companies will bring iconic brands such as Dr Pepper, 7 Up, Canada Dry, Snapple, and Green Mountain Coffee Roasters under one roof with combined pro forma revenue of $11 billion as of 2017.