On Monday, shares of Constellation Brands Inc (STZ) traded as low as $135.25, offering a quarterly dividend yield exceeding 3% based on an annualized dividend of $4.08. This yield positions STZ as an attractive option among S&P 500 companies, particularly for investors focused on dividends as a source of total return.
Historically, dividends have played a crucial role in stock market returns. For instance, if an investor bought the S&P 500 ETF (SPY) at $146.88 on December 31, 1999, the share value decreased to $142.41 by December 31, 2012, resulting in a loss of $4.67. However, dividends collected during this period totaled $25.98 per share, yielding a positive total return of 23.36%.
Investors are advised to consider Constellation Brands’ dividend history when assessing the sustainability of its current yield above 3%.
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