Bought: Keurig Dr. Pepper (KDP)

Today, I bought Keurig Dr. Pepper stock (KDP)

This new, combined powerhouse of a company started trading for the first time ever, this morning.

Here's why some of my thoughts and reasons why I bought KDP.

The new company, Keurig Dr. Pepper (KDP), was recently created after the completion of the merger between Keurig Green Mountain and Dr Pepper Snapple Group. The transaction creates the seventh-largest company in the U.S. food and beverage sector and third-largest beverage company in North America, with annual revenues of approximately $11 billion.


 KDP holds leadership positions in soft drinks, specialty coffee and tea, water, juice and juice drinks and mixers, and markets the #1 single serve coffee brewing system in the U.S.

The Company maintains an unrivaled distribution system that enables its portfolio of more than 125 owned, licensed and partner brands to be available nearly everywhere people shop and consume beverages.

With a wide range of hot and cold beverages that meet virtually any consumer need, KDP key brands include Keurig®, Dr Pepper®, Green Mountain Coffee Roasters®, Canada Dry®, Snapple®, Bai®, Mott’s® and The Original Donut Shop®. The Company operates more than 120 offices, manufacturing plants, warehouses and distribution centers across North America.


The new company started trading at the opening bell today. Both of the companies were doing great on their own. The combination of these fine companies creates a new superpower in the food and beverage sector.

Both of these companies were sold, well known, established businesses. They have been around for quite a while and they are here to stay. Their products are well known and are used everyday.

This combined company is very strong and the opportunity to buy the new company as this low price was an incredible opportunity. Dr Pepper Snapple stock was trading over $100 before the merger.

I expect the new KDP to offer dividends in the near future. The old Dr. Pepper Snapple Group (DPS) paid a dividend. The new company will too.

The ability to buy a powerhouse company from it's infancy, is an extremely rare opportunity.

As are all of the stocks in my IRA portfolios, KDP is an investment, not a trade. While the new stock will fluctuate up and down, it is my opinion that the stock goes up long term.

I predict great things for this superpower business going forward.


Disclosure: I am long KDP

I wrote this article myself, and it expresses my own opinions. I am not receiving any compensation for it. I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure: My opinions and strategies of the are not intended to ever be a recommendation to buy or sell a security. The strategies I use have worked for me and it is 100% for you to decide if it could benefit your financial future. Please remember to do your own research and know your risk tolerance.