Would you meet me on the dock for breakfast by the bay? I’ve got a piece of news to share.

Dr Pepper Snapple Group Inc. (ticker: DPS) is set to pay a special dividend of $103.75 per share to all current stock owners. I noticed Dr. Pepper Snapple is not part of your stock portfolio.

Let’s change that, shall we?

DPS is currently trading at $121.31 per. In honor of Pamper-Her-Friday, I transferred 100 shares into your sweep account. The ex-dividend date is July 5 (the date we must be in ownership) and the record date is July 6. The dividend will be paid on July 10.

This special dividend is the result of Dr. Pepper Snapple’s upcoming merger with coffee purveyor Keurig Green Mountain Inc. (ticker: GMCR). Following the closing of the merger, DPS will be renamed Keurig Dr Pepper Inc. and trade under the ticker symbol “KDP” on the New York Stock Exchange.

Our strategy? We can take the cash once the divvy pays or we can do a dividend reinvestment through which the dividend will automatically be reinvested in the new company, purchasing as many shares in KDP that your $10,375 will cover. I calculate the new company’s shares will be trading anywhere from $18 to $20 per—while also paying a dividend just to hold the new shares.

So it’s up to you, angel, how you’d prefer to play it: Cash out or reinvest. You may even prefer to take the cash, buy yourself something you’re deserving of, or perhaps take part cash and reinvest the balance in other companies with an eye towards the future.

You know I’ve always been a futurist, so I’m doing the auto-reinvestment.

But if you opt to cash out and would like to treat me to a Kem or Sade Adu concert—just because—well, I’d make an intriguing date.

I’m a gentleman after all.

Happy Pamper-Her-Friday, love.

Yours,
Rg2

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Pamper the woman . . . for a summer’s romance. -Rg2

© 2018 Pamper-Her-Friday by Rg2®