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Q3 Earnings Picks: How is Caffeine Affecting Your Portfolio?

Oct. 29, 2012
Investing, Investments
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What’s your favorite soft drink? Some people suggest that you invest in products that you know. In theory, if you personally enjoy the product, you’re more likely to have a sense of the company’s performance and operations.

Chances are, sometimes that method will work, and sometimes it won’t. Letting your personal opinions of a product cloud your judgement as to whether it’s parent company will be successful is probably not the best methodology long-term. Just because you’re allergic to cats, it doesn’t mean that dogs are smarter.

To help you take a more analytical approach to investing in your favorite products, NerdWallet searched through their Q3 earnings reports to find some critical pieces of information regarding their performance and the benefits of becoming an investor.

Coca-Cola Enterprises (CCE)

Popular Products: Coca-Cola, Fanta, Sprite, Powerade, Capri Sun, Monster, Vitamin Water

For Investors: So far this year, Coca-Cola has repurchased $600 million worth of stock from its shareholders, and has paid $142 million in dividends.

Coca-Cola is just about as American as apple pie. However, the soda producer has done quite well all over the world, and is continuously expanding.

PepsiCo (PEP)

Popular Products: Pepsi, Gatorade, Sierra Mist, Tropicana, Mountain Dew, SoBe, Aquafina, Lipton

For Investors: Pepsi has repurchased $2.3 billion worth of stock and has paid $2.5 billion in dividends. Over the course of the next quarter, Pepsi intends to return an additional $1.5 billion to shareholders.

Pepsi may be Coke’s longtime rival, but it is significantly larger, and has expanded into other fields outside of soft drinks. Pepsi also produces chips, cereals, and packaged snacks of all types.

Dr.Pepper Snapple Group (DPS)

Popular Products: Dr.Pepper, Snapple, 7UP, A&W, Schweppes, Squirt, Sunkist, Orangina, Welch’s, Yoohoo

For Investors: This year-to-date, Dr.Pepper Snapple has only repurchased $262 million of stock. However, they have paid $213 million in dividends.

Though it brought in the least income for the quarter, Dr.Pepper Snapple had the greatest improvement from Q3 2011.



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