After a successful last quarter, Constellation Brands, Inc. (NYSE:STZ) has decided to pay a dividend to its shareholders. As per the reports, it’s the first time since 1973 when Constellation has announced cash dividend.
What Prompted The Company To Announce Cash Perks For Its Shareholders:
The overall performance of the company has been quite good for the last some time, but the thing that has prompted it to announce cash discount is the extraordinary performance of company’s Mexican beer segment.
The overall profit of the company in the fourth quarter was $215 million as compared to $157 million of the previous year. Beer sales of the company surged by 11% while spirits and wine sales went up by 2% in its fourth quarter. Net sales of the company increased by 5% and touched $1.36 billion mark. As per the reports, the growth in sales was on constant currency basis.
Constellation Brands, Inc. (NYSE:STZ) is a renowned name in the alcoholic beverage maker industry in United States. It wanted to reduce its debt from a long time; therefore, it had recently clarified that it would try to return cash to shareholders in one form or another. Constellation announced that it would offer 31 cents per share dividend for all the shares belonging to Class A category, while 28 cents per share for the Class B category. The dividend is payable in the month of May.
If the entire alcohol industry in United States is taken into consideration, then Modelo Especial and Corona Extra brands of Constellation are found as two of the hottest brands among hundreds of world class products. While its closest rivals MillerCoors LLC and Anheuser-Busch InBev NV have struggled to maintain their profits amidst of declining volumes lately, Constellation has not faced any such problem.
The company doesn’t want to leave any stone unturned when it comes to the beer business. It has announced the plans to invest more than $1 billion to expand brewery business in Nava, Mexico.