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

Key Points

• Constellation Brands declared a quarterly dividend of $1.03 per share, payable November 13 to shareholders of record October 30. The annualized dividend is $4.12, yielding approximately 3.5%, and is supported by a 29.7% payout ratio.
• The company exceeded quarterly expectations with adjusted EPS of $3.74 and revenue of $2.63 billion, up 6.1% year over year. It also acquired ready-to-drink brand SpikedAde for $75 million upfront, with potential additional payments of up to $278 million.
• Key risks remain around slowing core beer demand: Modelo Especial and Corona Extra volumes declined, while full-year revenue guidance came in below Wall Street expectations. Fiscal 2027 adjusted EPS guidance was maintained at approximately $11.20–$11.90 rather than raised.

Constellation Brands Inc (NYSE:STZ - Get Free Report) announced a quarterly dividend on Tuesday, October 6th. Stockholders of record on Friday, October 30th will be paid a dividend of $1.03 per share on Friday, November 13th. This represents a $4.12 dividend on an annualized basis and a dividend yield of 3.5%. The ex-dividend date of this dividend is Friday, October 30th.

Constellation Brands has increased its dividend by an average of 0.1%per year over the last three years and has raised its dividend annually for the last 5 consecutive years. Constellation Brands has a payout ratio of 29.7% indicating that its dividend is sufficiently covered by earnings. Equities analysts expect Constellation Brands to earn $12.19 per share next year, which means the company should continue to be able to cover its $4.12 annual dividend with an expected future payout ratio of 33.8%.

Constellation Brands Stock Performance

NYSE STZ opened at $116.36 on Wednesday. The company has a current ratio of 0.91, a quick ratio of 0.48 and a debt-to-equity ratio of 1.06. The firm has a market capitalization of $19.87 billion, a price-to-earnings ratio of 11.10, a P/E/G ratio of 2.25 and a beta of 1.75. The firm's 50 day simple moving average is $126.30 and its 200 day simple moving average is $138.65. Constellation Brands has a 1 year low of $110.60 and a 1 year high of $168.60.

Constellation Brands (NYSE:STZ - Get Free Report) last announced its quarterly earnings data on Tuesday, October 6th. The company reported $3.74 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $3.55 by $0.19. Constellation Brands had a net margin of 18.87% and a return on equity of 25.58%. The business had revenue of $2.63 billion for the quarter, compared to analysts' expectations of $2.54 billion. During the same period last year, the firm posted $3.63 earnings per share. The firm's quarterly revenue was up 6.1% compared to the same quarter last year. Constellation Brands has set its FY 2027 guidance at 11.200-11.900 EPS. As a group, research analysts expect that Constellation Brands will post 11.81 earnings per share for the current fiscal year.

Key Constellation Brands News

Here are the key news stories impacting Constellation Brands this week:

• Positive Sentiment: Constellation reported adjusted EPS of $3.74, above the roughly $3.55 consensus estimate, while revenue rose 6.1% year over year to $2.63 billion, exceeding expectations. Beer sales increased 5%, and wine and spirits sales climbed 17%. Reuters earnings report
• Positive Sentiment: The company acquired spirit-based ready-to-drink brand SpikedAde for $75 million upfront, with potential contingent payments of up to $278 million. Management said the deal expands STZ’s exposure to the fast-growing RTD category. SpikedAde acquisition announcement
• Positive Sentiment: Some analysts remain constructive, pointing to STZ’s comparatively low valuation, strong cash generation, dividend and better-than-expected quarterly results. Wells Fargo maintained an overweight rating, although it reduced its price target to $140 from $170.
• Neutral Sentiment: Constellation maintained fiscal 2027 adjusted EPS guidance of approximately $11.20 to $11.90, broadly around analyst expectations but without raising its outlook. The company also declared a $1.03 quarterly dividend and has continued repurchasing shares.
• Negative Sentiment: Full-year revenue guidance of about $9 billion at the midpoint was below Wall Street expectations, reinforcing concerns about slowing demand and limited near-term growth.
• Negative Sentiment: Demand for flagship brands weakened: Modelo Especial depletions fell roughly 2% and Corona Extra volume declined about 5%. The declines overshadowed growth from Pacifico, Victoria and Modelo Chelada, raising concerns about the sustainability of STZ’s core beer business in a softer consumer environment. Barron's stock movers report

About Constellation Brands

Constellation Brands, Inc is a beverage alcohol company that develops, markets and distributes beer, wine and spirits. Its portfolio includes well-known beer brands such as Modelo Especial, Corona Extra, Corona Light and Pacifico, along with wine brands including Robert Mondavi, Kim Crawford, Meiomi, The Prisoner Wine Company and Ruffino.

The company also offers spirits through brands such as Casa Noble tequila and High West whiskey. Constellation's products are sold through retailers, distributors, restaurants and other on-premise locations, with a primary focus on the United States.

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