Jim Cramer - Mad Money
Keurig Dr Pepper
KDP-Q
BUY
Oct 01, 2021
KDP was a merger of Keurig and Dr. Pepper. Today, they announced mid-single-digit sales growth and high-single-digit earnings growth with $4 billion in discretionary cash flow over the next three years. They want to reward shareholders with special dividends and/or share buybacks or an acquisition. It's a safety stock that knows how to grow.
Sold it to buy Amazon but still likes KDP, which has a better long-term story than Pepsi or Coke, which trades around 23x forward PE (KDP is 19x). Likes KDP's 5% volume growth and M&A.