KDP dividend
KDP paid US$1,250 million in dividends in 2025 against US$1,505 million of free cash flow, so free cash flow covered the dividend. The remaining cash competed with buybacks, debt reduction, investment and other uses.
How much does KDP pay per share over the years shown?
The base dividend moves from $0.92 to $0.95 and then $0.98 per share. The bear case holds it at $0.92. The bull case reaches $0.97 and then $1.02. The current quarterly payment is $0.23, but debt service and preferred dividends compete with increases.
| 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|
| Free cash flow per share | 1.10 | 1.21 | 0.64 | 1.74 | 1.72 |
| − Paid to minority owners, per share | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| − Dividends paid, per share | 0.92 | 0.87 | 0.81 | 0.76 | 0.67 |
Does KDP’s cash cover its dividend?
Free cash flow is operating cash after capital spending. In 2025, US$1,991 million of operating cash less US$486 million of capital spending left US$1,505 million, or 9.1% of sales. In 2021, free cash flow was 19.3% of sales. Sales grew, but the cash left after investment fell.
KDP’s own free-cash-flow measure also includes property-sale proceeds and other adjustments. Stock compensation further reduces what an owner might regard as cash available to them. Dividends paid consumed US$1,250 million in 2025. The following table tracks these competing claims on cash.
| 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|
| Free cash flow | 1,505 | 1,656 | 904 | 2,484 | 2,451 |
| − Dividends paid | 1,250 | 1,194 | 1,142 | 1,080 | 955 |
| − Share buybacks | 0 | 1,105 | 706 | 379 | 0 |
| = Free cash flow not paid out | 255 | 1,025 | 1,496 | ||
| Paid out, % of free cash flow | 83.1% | 138.8% | 204.4% | 58.7% | 39.0% |
What this means. The company's own net debt is lower because it leaves out finance-lease debts and some debt value adjustments that we count.
What could change KDP’s dividend?
| October 2027 | October 2028 | October 2029 | |
|---|---|---|---|
| Earnings | 3,449 (2,990 / 3,656) | 3,750 (2,889 / 4,100) | 4,087 (2,811 / 4,588) |
| Shares (millions) | 1,363 (1,363 / 1,363) | 1,426 (1,366 / 1,487) | 1,429 (1,368 / 1,489) |
| Dividends per share | 0.92 (0.92 / 0.92) | 0.95 (0.92 / 0.97) | 0.98 (0.92 / 1.02) |
| Price to earnings | 15.00 (13.00 / 18.00) | 15.50 (12.50 / 20.00) | 16.10 (12.70 / 20.80) |
What is KDP’s dividend yield at today’s price?
Keurig Dr Pepper, or KDP, sells packaged drinks and coffee systems, but its stock now also prices a large acquisition and a planned separation. At $34.62 a share, the central question is how much of the promised future profit will reach common shareholders after debt, preferred stock, and outside owners are paid.