Constellation Brands Inc (NYSE:STZ) Announces Quarterly Dividend of $1.03

Key Points

• Dividend announced: Constellation Brands declared a quarterly dividend of $1.03 per share (ex-dividend April 29, payable May 14), a 1.0% increase from the prior quarter and implying a ~2.7% yield.
• Quarterly beat but revenue fell: The company reported $1.90 EPS versus $1.68 expected and $1.92B in revenue versus $1.84B expected, although revenue was down 11.3% year‑over‑year.
• Dividend looks sustainable: The payout ratio is about 29.4%, Constellation has raised its dividend for five consecutive years, and analysts forecast roughly $14.44 in EPS next year—suggesting continued coverage of the roughly $4 annual dividend.

Constellation Brands Inc (NYSE:STZ - Get Free Report) announced a quarterly dividend on Wednesday, April 8th. Shareholders of record on Wednesday, April 29th will be paid a dividend of 1.03 per share on Thursday, May 14th. This represents a c) dividend on an annualized basis and a dividend yield of 2.7%. The ex-dividend date of this dividend is Wednesday, April 29th. This is a 1.0% increase from Constellation Brands's previous quarterly dividend of $1.02.

Constellation Brands has increased its dividend by an average of 0.1%per year over the last three years and has increased its dividend annually for the last 5 consecutive years. Constellation Brands has a dividend payout ratio of 29.4% indicating that its dividend is sufficiently covered by earnings. Analysts expect Constellation Brands to earn $14.44 per share next year, which means the company should continue to be able to cover its $4.08 annual dividend with an expected future payout ratio of 28.3%.

Constellation Brands Stock Down 2.3%

Shares of NYSE:STZ opened at $150.34 on Thursday. The stock has a market capitalization of $26.07 billion, a price-to-earnings ratio of 23.71, a price-to-earnings-growth ratio of 0.42 and a beta of 0.44. Constellation Brands has a 1-year low of $126.45 and a 1-year high of $196.91. The company's fifty day moving average is $154.39 and its two-hundred day moving average is $145.25. The company has a debt-to-equity ratio of 1.29, a quick ratio of 0.70 and a current ratio of 1.34.

Constellation Brands (NYSE:STZ - Get Free Report) last issued its earnings results on Wednesday, April 8th. The company reported $1.90 earnings per share for the quarter, topping analysts' consensus estimates of $1.68 by $0.22. The company had revenue of $1.92 billion for the quarter, compared to analysts' expectations of $1.84 billion. Constellation Brands had a net margin of 11.08% and a return on equity of 29.15%. The firm's revenue was down 11.3% compared to the same quarter last year. During the same period in the prior year, the company earned $2.63 earnings per share. Equities analysts anticipate that Constellation Brands will post 13.5 EPS for the current year.

Hedge Funds Weigh In On Constellation Brands

Several large investors have recently bought and sold shares of the stock. Hsbc Holdings PLC increased its stake in Constellation Brands by 7.9% during the 4th quarter. Hsbc Holdings PLC now owns 269,319 shares of the company's stock valued at $37,202,000 after buying an additional 19,730 shares during the period. Strategic Investment Solutions Inc. IL increased its stake in Constellation Brands by 23.0% during the 4th quarter. Strategic Investment Solutions Inc. IL now owns 1,653 shares of the company's stock valued at $228,000 after buying an additional 309 shares during the period. Anchor Investment Management LLC increased its stake in Constellation Brands by 5.1% during the 4th quarter. Anchor Investment Management LLC now owns 2,670 shares of the company's stock valued at $368,000 after buying an additional 130 shares during the period. MidFirst Bank acquired a new position in Constellation Brands during the 4th quarter valued at about $729,000. Finally, MV Capital Management Inc. acquired a new position in Constellation Brands during the 4th quarter valued at about $26,000. Institutional investors and hedge funds own 77.34% of the company's stock.

About Constellation Brands

Constellation Brands, Inc is a leading producer and marketer of beer, wine and spirits, with operations spanning production, importation, marketing and distribution. The company's beverage portfolio includes a range of premium and mainstream wines and spirits alongside major imported beer brands; in the U.S. market Constellation is widely known for its role in bringing Mexican imports such as Corona and Modelo to American consumers. Constellation supplies retail, on‑premise and foodservice channels and supports its brands with national sales and marketing platforms and supply‑chain capabilities.

The company traces its roots to the Canandaigua Wine Company, founded by Marvin Sands in 1945, and evolved through organic growth and acquisition into a diversified beverage company.

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