National Beverage, owner of the LaCroix brand of sparkling water, has some refreshing news for its shareholders. The company announced late Wednesday that it will pay a special cash dividend of $3.25 a share later this month. The stock gained more than 10% Thursday.
It is the 13th special dividend from the company in the past 22 years. Still, the dividend announcement may not wash out the bad taste investors may have in their mouths from the company's latest results.
National Beverage also reported sales and earnings for its latest fiscal year Wednesday that were each down 1.7% from a year ago. And one of the few analysts that covers the stock, Peter Grom of UBS, has a Sell rating on the stock. The special dividend news didn't change Grom's take, however.
"Top line growth has proven elusive for some time," Grom wrote in a Thursday report.
National Beverage doesn't pay a regular dividend, so it isn't a typical choice for income-oriented investors. And despite the big pop on on Thursday, shares are still down about 27% over the past 12 months.
Investors looking to bet on the beverage business might be better off with soft drink giants Coca-Cola, PepsiCo and Keurig Dr Pepper instead. All three pay regular dividends that yield in a range between 2.6% and 4.1%. Keurig shares are flat over the past year but PepsiCo's stock has gained around 5% and Coca-Cola is up nearly 15%.
Sure, that lags behind the broader market. But if you're thirsty for income, Coca-Cola, PepsiCo, and Keurig Dr Pepper may offer a steadier stream of dividends than National Beverage over the long haul.
Write to Paul R. La Monica at paul.lamonica@barrons.com
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(END) Dow Jones Newswires
July 02, 2026 11:29 ET (15:29 GMT)
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