March 11, 2026 a 07:46 am
STZ: Dividend Analysis - Constellation Brands, Inc.
Constellation Brands, Inc. demonstrates a stable dividend profile with steady, consistent growth over recent years. The company’s dividend yield is competitive, signifying its commitment to returning value to shareholders. Despite economic challenges, Constellation maintains a robust dividend history, showcasing resilience and investor confidence in its long-term strategy.
📊 Overview
The following metrics provide a snapshot of Constellation Brands, Inc.'s dividend profile.
| Metric | Value |
|---|---|
| Sector | Beverages - Wineries & Distilleries |
| Dividend yield | 2.64% |
| Current dividend per share | 4.03 USD |
| Dividend history | 12 years |
| Last cut or suspension | None |
🗣️ Dividend History
Evaluating dividend history is crucial for assessing the consistency and reliability of a company’s payouts. Constellation Brands, Inc. has maintained its dividends over the years, reflecting financial health and adherence to shareholder commitments.
| Year | Dividend Per Share (USD) |
|---|---|
| 2026 | 1.02 |
| 2025 | 4.07 |
| 2024 | 3.92 |
| 2023 | 3.47 |
| 2022 | 3.16 |
📈 Dividend Growth
Dividend growth over time shows how well a company's earnings expand and its willingness to increase shareholder returns. A steady growth rate indicates financial robustness and efficient management.
| Time | Growth |
|---|---|
| 3 years | 8.80% |
| 5 years | 6.29% |
The average dividend growth is 6.29% over 5 years. This shows moderate but steady dividend growth.
💰 Payout Ratio
The payout ratio indicates the sustainability of the current dividend levels. A balanced payout ratio supports future dividend growth and financial stability.
| Key figure | Ratio |
|---|---|
| EPS-based | 63.42% |
| Free cash flow-based | 39.84% |
The payout ratios of 63.42% (EPS) and 39.84% (FCF) suggest a well-balanced approach to maintaining dividend stability while ensuring reinvestment in growth areas.
💸 Cashflow & Capital Efficiency
Assessing cash flow stability and capital efficiency helps understand the value generation ability of the company. It provides insight into financial health and management effectiveness.
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Free Cash Flow Yield | 6.74% | 3.32% | 6.09% |
| Earnings Yield | 4.24% | 3.79% | -0.26% |
| CAPEX to Operating Cash Flow | 34.76% | 45.65% | 38.52% |
| Free Cash Flow / Operating Cash Flow Ratio | 61.48% | 54.35% | 61.48% |
The cash flow metrics reveal a stable cash flow with efficient capital allocation strategy, aligning with healthy financial operations.
🏦 Balance Sheet & Leverage Analysis
Examining the balance sheet and leverage ratios provides insights into Constellation’s financial leverage and ability to manage its debts effectively.
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Debt-to-Equity | 1.54 | 1.29 | 1.76 |
| Debt-to-Assets | 0.53 | 0.49 | 0.56 |
| Debt-to-Capital | 0.61 | 0.56 | 0.64 |
| Net Debt to EBITDA | 11.00 | 4.02 | 15.39 |
| Current Ratio | 1.18 | 0.00 | 0.92 |
| Quick Ratio | 0.54 | 0.53 | 0.56 |
The debt ratios indicate a considerable leverage position, requiring monitoring for potential impacts on financial flexibility, while liquidity ratios suggest an adequate short-term financial position.
🎯 Fundamental Strength & Profitability
Understanding fundamental strengths and profit metrics are crucial for evaluating the performance and operational efficacy of a firm.
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Return on Equity | -0.84% | 17.73% | -1.18% |
| Return on Assets | -0.29% | 6.72% | -0.38% |
| Margin - Net | -0.75% | 17.34% | -0.80% |
| EBIT Margin | 8.27% | 26.66% | 3.29% |
The profitability metrics illustrate fluctuations, with a stronger performance in 2024. This pattern necessitates strategic measures to stabilize profitability consistently.
📉 Price Development
✅ Dividend Scoring System
| Criteria | Score | Bar |
|---|---|---|
| Dividend yield | 3 | |
| Dividend Stability | 4 | |
| Dividend growth | 3 | |
| Payout ratio | 3 | |
| Financial stability | 3 | |
| Dividend continuity | 4 | |
| Cashflow Coverage | 3 | |
| Balance Sheet Quality | 3 |
Total Score: 26/40
🔍 Rating
Constellation Brands, Inc. showcases a strong dividend profile, reflecting sound financial management and a firm commitment to rewarding its shareholders. The dividend analysis portrays a positive outlook, with opportunities for consistent growth. The recommendation is cautiously optimistic, suggesting holding the stock for stable income and potential appreciation.