Cullen Capital Management, LLC, operating under the name Schafer Cullen Capital Management, Inc. (SCCM), has released its “SCCM Enhanced Equity Income Fund” first-quarter investor letter. A copy of the letter can be downloaded here. The first quarter showed mixed results for US stocks, with the S&P 500 declining 4.3% and the Russell 1000 Value rising by 2.1%. The composite outperformed both of its benchmarks in the first quarter, and returned 5.8% (net) compared to a -3.1% return by the CBOE Buy/Write Index (BXM) and a 0.8% return by the SPDR Bloomberg High Yield Bond ETF (JNK). The gains were driven by strong outperformance in seven sectors, mainly in Information Technology, Consumer Discretionary, and Communication Services, during a reversal of the stratified equity market gains of the past two years. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2025.
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In its first-quarter 2025 investor letter, SCCM Enhanced Equity Income Fund highlighted stocks such as Keurig Dr Pepper Inc. (NASDAQ:KDP). Keurig Dr Pepper Inc. (NASDAQ:KDP) owns and distributes beverages and single-serve brewing systems. The one-month return of Keurig Dr Pepper Inc. (NASDAQ:KDP) was 2.35%, and its shares gained 2.60% of their value over the last 52 weeks. On July 1, 2025, Keurig Dr Pepper Inc. (NASDAQ:KDP) stock closed at $33.57 per share, with a market capitalization of $45.594 billion.
SCCM Enhanced Equity Income Fund stated the following regarding Keurig Dr Pepper Inc. (NASDAQ:KDP) in its Q1 2025 investor letter:
“Shares of Keurig Dr Pepper Inc. (NASDAQ:KDP) were purchased in the quarter. KDP is a leading beverage company with a diversified portfolio spanning carbonated soft drinks, coffee, energy drinks, and premium waters. The company was established in 2018 following the merger of Keurig Green Mountain Coffee and Dr Pepper Snapple. Some of its well-known brands include Dr Pepper, Snapple, Canada Dry, A&W, Evian, Green Mountain Coffee Roasters, Peet’s Coffee, and others. KDP’s increasing exposure to high-growth categories such as energy drinks (C4 Energy, GHOST) and ready-to-drink coffee, coupled with an improving at-home coffee business, position it well for sustained long-term growth. KDP also has a strong innovation pipeline, with new product launches in carbonated beverages and coffee. In the coffee segment, Keurig remains the number one single-serve brewer in North America. Despite macroeconomic headwinds, KDP has maintained mid-single-digit revenue growth and high-single-digit EPS growth in recent years, differentiating it from other Consumer Staples companies. Management has also enacted a cost savings plan from sourcing and distribution consolidation as well as administrative streamlining. Shares of KDP were purchased at 16.6x 2025 earnings with a dividend yield of 2.8%.”
