Investors received a foamy delight on February 13, 2024, as Molson Coors Beverage Company unveiled its plans to distribute a regular quarterly dividend of $0.44 per share ($1.76 annualized). This marked an uptick from the previous dividend of $0.41 per share. In order to sip from this financial barrel of brew, shares must be acquired before the ex-dividend date of February 29, 2024. Shareholders of record as of March 1, 2024, can expect their payouts to flow in on March 15, 2024.
Trading at the current price of $62.15 per share, the stock’s dividend yield offers a refreshing sip at 2.83%. But how does this current yield compare to past harvests? Taking a stroll down memory lane over the past five years, historical data reveals an average dividend yield of 3.21%, with the lowest at 2.35% and the frothiest peak at 6.60%. The standard deviation of yields over this period stands at 0.83 (n=179). A closer examination exposes that the current dividend yield lags, per chance, at 0.46 standard deviations below this historical mean.
Beyond the surface, it’s vital to examine the company’s dividend payout ratio, a measure that unveils how much of a company’s income is funneled into dividends. At 0.40, the current ratio offers a glance at financial transparency. A ratio of one (1.0) is akin to draining the keg, signaling that 100% of the company’s income is being served out in dividends. A ratio surpassing one suggests dipping into savings, a move akin to diluting the beer with less than desirable water. On the other hand, companies eyeing growth tend to retain earnings to nurture their potential.
Funds and Institutions Show Their Cheers
A magnetic attraction is brewing as 1311 funds or institutions report positions in Molson Coors Beverage, showcasing a 4.63% increase in the last quarter. On the contrary, the average portfolio weight of all funds dedicated to TAP stands at 0.22%, marking a 6.87% dip. Meanwhile, the total shares owned by institutions mounted a 1.62% rise in the last three months, reaching a frothy 201,949K shares. However, the put/call ratio of TAP paints a sobering picture at 1.26, indicating a bearish outlook.
Analyst Price Forecast: A Wheat Field of Opportunity
As of January 19, 2024, the average one-year price target for Molson Coors Beverage has a frothy top of 68.06 and a hoppy bottom of 58.58, culminating in an average price target offering a 9.50% hike from its latest closing price of $62.15. A pint of optimism is brewing, as the projected annual revenue for Molson Coors Beverage stands at 11,144MM, accompanied by a projected annual non-GAAP EPS of 4.42.
Insider Trades: Which Way is the Wind Blowing?
As glances are exchanged within the realm of insider trades, Dodge & Cox flaunts a 6.87% ownership of the company, marked by a slight decrease of 0.25% in their prior filing. Not to be outdone, they also successfully decreased their portfolio allocation in TAP by 9.42% over the last quarter.
Other key players, including Capital International Investors and Lsv Asset Management, also fiddle with the hops, showcasing decreases in their portfolio allocations and ownership rates. Yet, a glimmer of hope is witnessed in the fiberglass of Vanguard Total Stock Market Index Fund Investor Shares, marking a fractional increase in their portfolio allocation in TAP by 0.36% over the last quarter.
A Taste of Tradition and Innovation
For over two centuries Molson Coors has been brewing a symphony of elixirs that bring people together for all of life’s moments. In addition to the classic revelry of Coors Light, Miller Lite, and Molson Canadian, the company has etched newer brands like Vizzy and Leinenkugel’s Summer Shandy into the hearts of beer enthusiasts. But the fermenting innovations do not stop there – with a modern portfolio that extends beyond the beer aisle, Molson Coors stays rooted in its commitment to raising industry standards and leaving a positive imprint on its employees, consumers, communities, and the environment. This dedicated ethos shines through its Imprint and the 2025 sustainability targets it fervently pursues.
It’s not often that one gets to witness the merger of history and evolution in a single sip, but Molson Coors Beverage Company offers just that.
