April 18, 2025 a 02:46 am
TAP: Dividend Analysis - Molson Coors Beverage Company
TAP, trading as Molson Coors Beverage Company, showcases a commendable dividend profile marked by a robust dividend history and moderate yield. As a significant player in the beverage industry, TAP stands resilient with a consistent 40-year dividend history and a current yield of approximately 2.91%. While the recent dividend growth numbers demonstrate variability, the firm exhibits financial discipline with manageable payout ratios, indicative of sustainable dividend payments.
📊 Overview
Molson Coors displays a reliable and attractive dividend profile, considering the beverage sector's characteristics. With a 2.91% dividend yield and a substantial 40-year history without cuts, TAP offers both seasoned stability and attractive return potential for income-focused investors.
| Sector | Dividend Yield | Current Dividend Per Share | Dividend History | Last Cut or Suspension |
|---|---|---|---|---|
| Beverages | 2.91% | 1.77 USD | 40 years | None |
🗣️ Dividend History
Molson Coors has maintained a strong dividend payment track record, which is a testament to its operational consistency and shareholder value orientation. This historical perspective is crucial for assessing the reliability of ongoing dividend payments.
| Year | Dividend Per Share (USD) |
|---|---|
| 2025 | 0.47 |
| 2024 | 1.76 |
| 2023 | 1.64 |
| 2022 | 1.52 |
| 2021 | 0.68 |
🔍 Dividend Growth
Analyzing the dividend growth trend provides insight into the company's commitment to enhancing shareholder returns. Over the past three years, the dividend growth rate is approximately 0.37%, while over five years, it has seen a slight decline of -0.02%, indicating fluctuations in distribution policies influenced by broader business cycles.
| Time | Growth |
|---|---|
| 3 years | 0.37% |
| 5 years | -0.02% |
The average dividend growth over 5 years is -0.02%, showing that while there has been minor growth in recent periods, overall long-term growth remains a focus.
📉 Payout Ratio
Payout ratios are pivotal in assessing dividend sustainability. Molson Coors boasts a payout ratio based on EPS of 32.34% and a free cash flow-based ratio of 28.99%. These numbers highlight a cautious yet effective approach to maintaining dividends while securing capital for reinvesting back into the company.
| Key Figure | Ratio |
|---|---|
| EPS-based | 32.34% |
| Free cash flow-based | 28.99% |
Molson Coors's payout ratios suggest a disciplined dividend policy with ample buffer for future investments and debt management.
🔍 Cashflow & Capital Efficiency
Cashflow and capital efficiency are critical to understanding a company’s financing, investment, and operational health. With a robust free cash flow yield of 10.38% and a free cash flow to operating cash flow ratio of 64.71%, Molson Coors indicates strong capacity for sustaining capital expenditures and supporting dividend payments.
| Year | Free Cash Flow Yield | Earnings Yield | CAPEX to Operating Cash Flow | Stock-Based Compensation to Revenue | FCF/Operating Cash Flow Ratio | ROIC |
|---|---|---|---|---|---|---|
| 2024 | 10.38% | 9.38% | 35.29% | 0.37% | 64.71% | 5.85% |
| 2023 | 10.65% | 7.18% | 32.30% | 0.38% | 67.70% | 4.73% |
| 2022 | 7.52% | -1.67% | 44.03% | 0.31% | 55.97% | 23.98% |
The stable cash flow metrics affirm Molson Coors's efficiency in managing its capital and providing shareholders with consistent returns while maneuvering its operational obligations effectively.
🧮 Balance Sheet & Leverage Analysis
Examining the leverage and liquidity ratios over time highlights Molson Coors's financial stability. Debt-to-equity and net debt/EBITDA ratios show manageable leverage levels, reflecting careful debt management and moderate risk in its capital structure.
| Year | Debt-to-Equity | Debt-to-Assets | Debt-to-Capital | Net Debt to EBITDA | Current Ratio | Quick Ratio | Financial Leverage |
|---|---|---|---|---|---|---|---|
| 2024 | 47.30% | 23.76% | 32.11% | 2.98 | 0.94 | 0.70 | 1.99 |
| 2023 | 47.52% | 23.78% | 32.21% | 2.50 | 0.70 | 0.50 | 2.00 |
| 2022 | 51.71% | 25.37% | 34.09% | 3.29 | 0.78 | 0.55 | 2.04 |
Molson Coors's leverage indicators reflect prudent financial management, maintaining debt at levels that support operational and strategic flexibility.
🚀 Fundamental Strength & Profitability
Profitability is crucial for meeting ongoing operational costs and elaborating future growth strategies. Despite challenging years, Molson Coors shows respectable profitability metrics, with a noticeable recovery in return metrics over recent periods.
| Year | Return on Equity | Return on Assets | Net Margin | EBIT Margin | EBITDA Margin | Gross Margin | R&D to Revenue |
|---|---|---|---|---|---|---|---|
| 2024 | 8.57% | 4.31% | 9.65% | 15.36% | 15.08% | 38.99% | 0% |
| 2023 | 7.19% | 3.60% | 8.11% | 12.70% | 18.49% | 37.33% | 0% |
| 2022 | -1.47% | -0.72% | -1.74% | 1.76% | 16.95% | 34.16% | 0% |
The fiscal discipline reflected in the above metrics makes TAP a potentially appealing choice for investors seeking a blend of growth and income return, with consistent profitability reinforcing operating efficiency.
📈 Price Development
📊 Dividend Scoring System
Evaluating Molson Coors using a customized scoring system provides an overall dividend quality indication.
| Criterion | Score | |
|---|---|---|
| Dividend Yield | 4 | |
| Dividend Stability | 5 | |
| Dividend Growth | 3 | |
| Payout Ratio | 5 | |
| Financial Stability | 4 | |
| Dividend Continuity | 5 | |
| Cashflow Coverage | 4 | |
| Balance Sheet Quality | 4 |
Total: 34/40
✨ Rating
Molson Coors Beverage Company, with its robust historical performance and well-managed financial and dividend policies, offers a stable income investment option with medium-term potential for growth. The commendable dividend yield and historical consistency position it as a suitable choice for income-focused investors willing to engage with occasional growth volatilities inherent in the beverage sector. A prudent buy for those seeking reliable income supplemented with moderate capital appreciation prospects.