Molson to tap cannabis demand

Article Excerpt

MOLSON COORS CANADA INC. (Toronto symbols TPX.A $80 and TPX.B $88; Conservative Growth Payer Portfolio, Consumer sector; Shares outstanding: 215.8 million; Market cap: $19.0 billion; Dividend yield: 2.5%; Dividend Sustainability Rating: Above Average; last raised its quarterly dividend with the February 2015 payment. Investors receive $0.41 U.S. a share for an annual rate of $1.64 U.S. The stock yields 2.7% for holders of the class A shares (2.5% for the class B shares). In response to slowing beer sales, Molson has formed a new alliance with Canadian cannabis producer HEXO Corp. (Toronto symbol HEXO). The alcohol giant now owns 57.5% of that joint venture—called Truss—to develop cannabis-infused, non-alcoholic beverages. Molson and HEXO aim to start selling cannabis beverages when Ottawa legalizes food and drinks containing marijuana extracts in late 2019. Molson Coors B is a buy. buy…

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