Constellation Brands, Inc. (NYSE:STZ), a major player in the beverages industry, announced on Tuesday that its Board of Directors has declared a quarterly cash dividend for its shareholders. The dividend is set at $1.01 per share for holders of its Class A Common Stock and $0.91 per share for holders of its Class 1 Convertible Common Stock.
Stockholders on record as of the close of business on November 5, 2024, will be eligible for the dividend, which is scheduled for distribution on November 21, 2024. This marks a continued commitment to shareholder returns by the Rochester, New York-based company.
The information regarding the dividend was furnished to the Securities and Exchange Commission (SEC) and, as such, is not subject to the liabilities of Section 18 of the Securities Exchange Act of 1934. It should be noted that this information could be incorporated by reference into future SEC filings only if explicitly referenced.
Constellation Brands, with a history of name changes from Canandaigua Wine Co Inc to Canandaigua Brands Inc and to its current name, has been a prominent manufacturer in the alcoholic beverage sector. The company's decision to declare a dividend reflects its financial health and its ability to generate sufficient cash flow to reward its investors.
This financial move is based on a press release statement and provides a clear signal to the market about the company's performance and strategy in returning value to its shareholders. The announcement is especially relevant for investors and market watchers who track the company's financial practices and shareholder-friendly policies.
Constellation Brands has not provided any additional forward-looking statements or marketing commentary in the context of this dividend announcement. The focus remains solely on the factual information of the dividend declaration as reported in the SEC filing.
In other recent news, Constellation Brands has been under the financial microscope following a series of significant developments. Roth/MKM, Goldman Sachs, and Jefferies have retained their Buy ratings on the company, despite revising their price targets to $298, $300, and $310 respectively.
Deutsche Bank has also adjusted its price target from $259 to $256, maintaining a Hold rating. These adjustments follow Constellation Brands' revised fiscal year 2025 guidance, which includes a downward revision in sales forecasts for its Beer and Wine & Spirits divisions, and an upward revision in earnings per share guidance.
The company has also announced the resignation of board member Judy A. Schmeling, assuring there were no disputes linked to her departure. These are the latest in a series of recent developments for Constellation Brands.
InvestingPro Insights
Constellation Brands' recent dividend announcement aligns with its strong track record of shareholder returns. According to InvestingPro data, the company has raised its dividend for 9 consecutive years, demonstrating a consistent commitment to increasing shareholder value. This is particularly noteworthy given the company's current dividend yield of 1.57%.
The company's financial health appears robust, with InvestingPro Tips indicating that Constellation Brands' liquid assets exceed short-term obligations. This strong liquidity position supports the company's ability to maintain and potentially increase its dividend payments in the future.
Constellation Brands has shown solid profitability, with InvestingPro data revealing a gross profit margin of 51.12% for the last twelve months as of Q1 2025. This healthy margin, combined with the company's revenue growth of 5.25% over the same period, suggests a stable financial foundation for continued dividend payments.
For investors seeking more comprehensive analysis, InvestingPro offers 5 additional tips for Constellation Brands, providing deeper insights into the company's financial position and market performance.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.