Constellation Brands Inc (NYSE:STZ) Increases Dividend to $1.03 Per Share

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

Constellation Brands has raised its dividend payment by an average of 0.1%annually 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%

Constellation Brands stock opened at $150.34 on Thursday. Constellation Brands has a 52 week low of $126.45 and a 52 week high of $196.91. The company has a current ratio of 1.34, a quick ratio of 0.70 and a debt-to-equity ratio of 1.29. The company’s 50-day moving average price is $154.39 and its two-hundred day moving average price is $145.25. The stock has a market cap of $26.07 billion, a price-to-earnings ratio of 23.71, a PEG ratio of 0.42 and a beta of 0.44.

Constellation Brands (NYSE:STZ) last posted its quarterly earnings data on Wednesday, April 8th. The company reported $1.90 earnings per share for the quarter, beating the consensus estimate of $1.68 by $0.22. Constellation Brands had a net margin of 11.08% and a return on equity of 29.15%. The company had revenue of $1.92 billion during the quarter, compared to analyst estimates of $1.84 billion. During the same quarter last year, the firm posted $2.63 EPS. The business’s revenue for the quarter was down 11.3% on a year-over-year basis. On average, analysts expect that Constellation Brands will post 13.5 EPS for the current fiscal year.

Institutional Trading of Constellation Brands

A number of hedge funds have recently bought and sold shares of STZ. Capital International Investors lifted its stake in Constellation Brands by 48.5% during the fourth quarter. Capital International Investors now owns 6,442,600 shares of the company’s stock valued at $888,930,000 after buying an additional 2,105,546 shares in the last quarter. Norges Bank purchased a new stake in shares of Constellation Brands in the fourth quarter worth approximately $267,798,000. Ameriprise Financial Inc. lifted its position in shares of Constellation Brands by 650.6% in the second quarter. Ameriprise Financial Inc. now owns 1,769,741 shares of the company’s stock worth $287,889,000 after purchasing an additional 1,533,961 shares in the last quarter. Berkshire Hathaway Inc lifted its position in shares of Constellation Brands by 11.6% in the second quarter. Berkshire Hathaway Inc now owns 13,400,000 shares of the company’s stock worth $2,179,912,000 after purchasing an additional 1,391,000 shares in the last quarter. Finally, Wellington Management Group LLP lifted its position in shares of Constellation Brands by 14.0% in the fourth quarter. Wellington Management Group LLP now owns 6,018,653 shares of the company’s stock worth $830,333,000 after purchasing an additional 739,393 shares in the last quarter. 77.34% of the stock is owned by hedge funds and other institutional investors.

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.