Analysis – Keurig Green Mountain, Inc. Increases Dividend by 15%


Keurig Green Mountain Incorporated announced a regular quarterly dividend of $0.2875, a 15 percent increase from the prior rate of $0.25 per share. The dividend will be paid at the new higher rate on February 2, 2014, to shareholders of record at close of business on January 13, 2015.

Date Quarterly Dividend
1/13/2015 0.2875
10/1/2014 0.25
7/1/2014 0.25
4/2/2014 0.25
1/15/2014 0.25

 Analysis of Valuation of Keurig Green Mountain (Symbol GMCR).

Keurig Green Mountain is trading above its average price/sale (P/S) range.  Keurig Green Mountain is trading at the bottom of its average historical dividend yield. 

Price 11/24/14 % Yield 5 Year Div. Growth Rate  SPS    2014 P/S Ratio 10 yr P/S  Low 10 yr P/S  High 5 yr max Yield % 5 yr lowest Yield %
$138.39 0.60% 15% 28.70 4.53 0.69 6.76 0.82% 0.60%

Keurig Green Mountain Dividend Yield Chart (Click to enlarge)


Explanation:  Dividend growth stocks may be valued upon historical relative price/sales and current yield analysis. Dividend stocks trading at a low historical price/sales (P/S) ratio should be viewed more highly to investors due to their depressed valuation versus other higher P/S ratio stocks.  Max P/S price target is based upon company reaching its highest historical P/S ratio.  Dividend stocks should also be viewed favorably when the current yield is above historical readings for the past 10 years.  Further information on evaluating dividend growth candidates can be found at

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