December 13, 2025 a 07:31 am
STZ: Dividend Analysis - Constellation Brands, Inc.
Constellation Brands, Inc. offers a stable dividend yield of 3.16% with a consistent dividend history over the last 11 years. Despite a moderate growth rate, the company maintains a respectable payout ratio and robust financial health, making it an attractive option for dividend-seeking investors.
📊 Overview
Constellation Brands stands out in the sector with a reliable dividend profile, demonstrating steady growth and impressive financial management.
| Attribute | Details |
|---|---|
| Sector | Consumer Staples |
| Dividend Yield | 3.16% |
| Current Dividend per Share | 4.03 USD |
| Dividend History | 11 years |
| Last Cut or Suspension | None |
🗣️ Dividend History
Maintaining a dividend growth trend is crucial for investor confidence, reflecting on the company's profitability and commitment to returning value.
| Year | Dividend per Share |
|---|---|
| 2025 | 4.07 USD |
| 2024 | 3.92 USD |
| 2023 | 3.47 USD |
| 2022 | 3.16 USD |
| 2021 | 3.03 USD |
📈 Dividend Growth
The growth in dividends over the years is a sign of a company's ability to consistently enhance shareholder value.
| Time | Growth |
|---|---|
| 3 years | 8.96% |
| 5 years | 5.57% |
The average dividend growth is 5.57% over 5 years. This shows moderate but steady dividend growth.
✅ Payout Ratio
The payout ratio is vital in assessing whether a company can sustain its dividend payments. It reflects current earnings versus dividends paid out.
| Key Figure | Ratio |
|---|---|
| EPS-based | 57.99% |
| Free cash flow-based | 38.22% |
The EPS-based payout ratio of 57.99% indicates a sound financial position to maintain dividends, while the 38.22% free cash flow payout suggests strong cash generation.
⚙️ Cashflow & Capital Efficiency
Analyzing the cash flow and capital efficiency gives insights into the company's operational effectiveness and financial health.
| Year | 2025 | 2024 | 2023 |
|---|---|---|---|
| Free Cash Flow Yield | 6.09% | 3.32% | 4.00% |
| Earnings Yield | -0.26% | 3.79% | -0.16% |
| CAPEX to Operating Cash Flow | 38.52% | 45.65% | 37.56% |
| Stock-based Compensation to Revenue | 0.71% | 0.64% | 0.72% |
| Free Cash Flow / Operating Cash Flow Ratio | 61.48% | 54.35% | 62.44% |
The strong cash flow ratios highlight effective operational management and adequate capital utilization, supporting consistent dividend payouts and growth.
🧾 Balance Sheet & Leverage Analysis
A comprehensive leverage analysis ensures the company maintains a healthy balance sheet, minimizing risks related to debt obligations.
| Year | 2025 | 2024 | 2023 |
|---|---|---|---|
| Debt-to-Equity | 1.76 | 1.29 | 1.54 |
| Debt-to-Assets | 56% | 49% | 53% |
| Debt-to-Capital | 64% | 56% | 61% |
| Net Debt to EBITDA | 15.39 | 4.02 | 10.98 |
| Current Ratio | 1.08 | 1.19 | 1.18 |
| Quick Ratio | 0.56 | 0.53 | 0.54 |
The moderate leverage levels with a comfortable current ratio indicate financial stability, with manageable debt levels aiding in maintaining liquidity and operational flexibility.
💪 Fundamental Strength & Profitability
Evaluating profitability and fundamental strength sheds light on a company's ability to generate revenue efficiently and return value to shareholders.
| Year | 2025 | 2024 | 2023 |
|---|---|---|---|
| Return on Equity | -1.18% | 17.73% | -0.84% |
| Return on Assets | -0.38% | 6.72% | -0.29% |
| Net Margin | -0.80% | 17.34% | -0.75% |
| EBIT Margin | 3.29% | 26.66% | 8.27% |
| EBITDA Margin | 7.67% | 30.97% | 12.36% |
| Gross Margin | 50.96% | 49.28% | 50.90% |
The robust margins and positive ROE trend in 2024 highlight strong profitability potential, reinforcing long-term growth prospects despite past fluctuations.
📈 Price Development
🎯 Dividend Scoring System
| Criterion | Description | Score |
|---|---|---|
| Dividend Yield | 3.16% yield is attractive for investors seeking income. | 4 |
| Dividend Stability | 11 years with no cuts. | 5 |
| Dividend Growth | Modest growth but consistent. | 3 |
| Payout Ratio | Moderate payout ratios imply sustainability. | 4 |
| Financial Stability | Strong financials support ongoing payouts. | 4 |
| Dividend Continuity | Regular dividends with no interruptions. | 5 |
| Cashflow Coverage | Solid cashflow metrics ensure payments are covered. | 4 |
| Balance Sheet Quality | Balance sheet metrics indicate healthy leverage. | 3 |
Total Score: 32/40
⚖️ Rating
Constellation Brands, Inc. presents a compelling dividend profile with a solid yield and consistent growth history. The company's sound financial health and robust cash flow capabilities underline its potential as a resilient dividend investment. While its growth rate may not be the highest, its stability and financial strength offer a balanced opportunity for investors prioritizing income.