dr-pepper-logoI have been an investor in Dr. Pepper Snapple Group (NYSE: DPS) ever since it spun off from its former parent company Cadbury Schweppes in 2008. It is an excellent company with a good dividend that, not only continues to increase its dividend, but is poised to see a run in its share price as well. It is a good dividend stock that should be added to your watch list.

Here are a few reasons why I like Dr. Pepper Snapple Group shares.

Dr. Pepper Offers A Good Dividend Yield

With returns on Treasuries, money markets, and certificates of deposit still at some of the lowest levels seen in a generation, investors continue to be on the hunt for yield. At current share price levels, Dr. Pepper Snapple Group’s current annual dividend of $1.52 per share provides a dividend yield of 3.33%. Stocks like Dr. Pepper that offer over a 3% annual dividend yield provide investors with a high yield that dividend investors are looking for.

Dr. Pepper Continues To Increase Its Dividend

Dr. Pepper Snapple Group spun off and became a publically traded company in 2008. In 2009, the company started issuing a dividend, and that dividend has increased every year since 2009. The dividend has more than doubling in 4 years, which equates to over an 18% increase to the dividend annually.

Potential Reasons For Dr. Pepper’s Share Increasing

DPS Has A Low P/E Ratio

Dr. Pepper Snapple Group has a Price to Earnings (P/E) Ratio of just 15.2 with its current share price of $45.64. This P/E Ratio is well below its industry rivals Coca-Cola (NYSE: KO) and Pepsi Co. (NYSE: PEP). Currently, both Coke and Pepsi enjoy a P/E Ratio of 21.

Company Overview

Nestle SA (PINK: NSRGY.PK) is a Swiss Company engaged in the nutrition, health and wellness sectors. It is the holding company of the Nestle Group, which comprises subsidiaries, associated companies and joint ventures throughout the world. It has such business units as Food and Beverage, Nestle Waters and Nestle Nutrition. It is also active in the pharmaceutical sector.

Company Overview

Family Dollar Logo Family Dollar Stores, Inc. (NYSE: FDO) operates a chain of more than 6,800 general merchandise retail discount stores in 44 states, providing consumers with a selection of low priced merchandise in neighborhood stores. Its merchandise assortment includes consumables, home products, apparel and accessories, and seasonal and electronics. Most items sell in the $1-$10 range.