Dr Pepper Snapple Group Inc. ( DPS ), a leading manufacturer and distributor of non-alcoholic beverages in the U.S., has increased its quarterly dividend to 34 cents per share, bringing its annualized dividend rate to $1.36 per share.

The new dividend rate reflects a 6.3% growth over the previous quarterly dividend of 32 cents per share (annualized $1.28 per share), which was paid in January 2012. As per the company, its new dividend rate of 34 cents will be paid on April 6, 2012, to shareholders of record as of March 19, 2012.

One of Dr Pepper's peers, PepsiCo Inc. ( PEP ) has declared a quarterly dividend of 51.5 cents per share, reflecting a 7% increase from last year. The company announced that its dividend is payable on March 30, 2012, to shareholders of record as of March 2, 2012. PepsiCo's current annualized dividend is $2.06 per share, which yields 3.09%. Dr Pepper's current dividend yield of 3.56% compares favorably to PepsiCo's yield.

The Plano, Texas-based manufacturer has always been committed to create value for its shareholders by returning excess cash to shareholders in the form of dividends as well as share repurchases. To maximize shareholders' wealth, the company is in practice of buying back its shares from time to time depending on market conditions. These strategies not only enhance shareholders returns but also facilitate in boosting the market value of the stock.

In November 2011, Dr Pepper's board of directors had approved a new share repurchase program, authorizing the buy back of up to $1.0 billion worth of the company's shares. This new authorization formed a part of the company's ongoing $2.0 billion share repurchase program, brining the total authorization to $3.0 billion. Of the total, the company had already bought back $1.5 billion through the third quarter of 2011, with about 218.2 million shares remaining outstanding at quarter end.

Dr Pepper currently has a Zacks #3 Rank, implying a short-term Hold rating on the stock. Moreover, we maintain a long-term Neutral recommendation on the stock.