Don’t miss the Constellation Brands Inc (STZ) annual meeting with shareholders to be held at 11.00 a.m., Eastern Daylight Time on 19th July 2022.
A Fortune 500 company, Constellation Brands, Inc. is an American manufacturer and distributor of beer, wine, and spirits.
It’s the largest US beer importer, and among all major beer producers, it holds the third-highest market share (7.4 percent).
On August 24, Constellation Brands, Inc.’s (NYSE:STZ) dividend will increase to $0.80 from the payment made at the same period last year.
The annual payout now equals 1.3 percent of the stock price, which is regrettably less than what the sector is paying.
If it is maintained over a long period of time, even a modest dividend yield might be appealing.
Constellation Brands’ profits substantially covered the previous dividend. This suggests that a sizable portion of profits are being put back into the company with the intention of fostering growth.
The EPS is expected to increase by 103.3 percent over the following year.
We predict the payout ratio will be 26 percent if the dividend follows current patterns, which is within the area where we feel confident in the dividend’s sustainability.
Constellation Brands Is Still Developing a Portfolio
Although the dividend has a reasonably good track record, we need to observe some more years of data before drawing any firm conclusions because there have only been 7 years of dividend payments.
Since 2015, the payout has increased from $1.24 per year to $3.20 per year. This indicates that over that time, the distributions have grown at a rate of 15% annually.
The relatively recent history of dividend payments hasn’t particularly pleased us, but the dividend is expanding nicely, so we might give it a closer look.
The Dividend Has Limited Growth Prospects
Based on the stock’s payment history’s quality, investors may be drawn to it. We shouldn’t jump to conclusions since things might not be as good as they seem.
Over the past five years, Constellation Brands has experienced a 3.3 percent annual decline in earnings per share.
A slight reduction in earnings isn’t ideal, and unless the trend can be stopped, it’s quite doubtful that the dividend will increase in the future.
Although it is anticipated that earnings will increase over the coming year, we would still be cautious until a history of earnings growth has been established.
Johnson & Johnson (NYSE: JNJ)
Also expected is Johnson & Johnson (NYSE: JNJ) Second Quarter 2022 Earnings Call and Webcast. Jul 19, 2022 at 8:30 AM EDT.
Notably, Johnson & Johnson(NYSE: JNJ) investors lowered its position by 1.5% during the 1st quarter as per the recent disclosure with the Securities & Exchange Commission.
Novartis AG(SWX: NOVN)
Also to be announced are Novartis AG(SWX: NOVN), Swiss-American multinational pharmaceutical giant second quarter & Half year 2022 results. July 19, 2022.
Analysts expect improved financial results for Novartis.
Netflix Inc. (NFLX)
Lastly, entertainment company Netflix Inc. (NFLX) will host a conference call at 6:00 PM ET on July 19, 2022, to discuss Q2 22 earnings results.
Investors will be watching the second-quarter earnings of the dominant streaming video company to see if it can rekindle its growth story.
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