Better Than Coke, Pepsi: No-Name Soda

(TheStreet)-- Coke KO, Pepsi PEP and Dr. Pepper DPS have nothing on soft-drink maker National Beverage FIZZ.

The pint-sized company, with a market value of only $579 million, offers impressive fundamentals. But, unlike many smaller firms, it's committed to shareholder returns. In December, National Beverage declared a $2.30 cash dividend to ensure that its stockholders would benefit from preferential dividend-tax treatment.

In 2009, National Beverage paid a $1.35 dividend, equal to a yield over 11% on declaration date. The Fort Lauderdale, Fla.-based company doesn't enjoy much name recognition, with brands ranging from Shasta to Crystal Bay, but its business is well-managed and there is reason to expect further dividends, given its debt-free balance sheet.

National Beverage is a peripheral beverage player. It's focused on the health-conscious U.S. consumer, selling energy drinks, fortified powders and enhanced juice and water. It has 12 manufacturing facilities in major urban centers. It distributes products through supermarkets, convenience stores, restaurants, schools, hospitals and wholesale clubs. Its geographic focus and efficient distribution network has elevated the company to the fourth-largest carbonated-drink seller in the U.S.

Continue reading the article.