Topic: How To Invest

Dividend Advisor Hotline – Friday, May 29, 2020

Article Excerpt

MOLSON COORS CANADA INC., Toronto symbols TPX.A $53.15 and TPX.B $54.09, is still a hold. The beer brewer last paid a quarterly dividend of $0.57 U.S. a share on March 20, 2020. However, it has now suspended dividend payments for the rest of 2020. The stock is down 24% in the past three months, as the COVID-19 pandemic has forced many bars and restaurants to close. That has hurt Molson’s sales and earnings, as those businesses accounted for 23% of its 2019 sales (17% in North America and about 50% in Europe). Eliminating the next three quarterly dividend payments will save the company roughly $370 million U.S. It has also cut its 2020 capital spending by $200 million. The savings will bolster Molson’s balance sheet until bars and restaurants reopen. The company held cash of $666.1 million as of March 31, 2020. However, its long-term debt of $8.0 billion is a high 94% of its currently depressed market cap. Suspending the dividend and reducing other…

You are trying to access subscriber-only content.

To read this article, you may subscribe or sign in.
If you are already a subscriber, log in here.

If you wish to become a subscriber, click here. Or you may enjoy access to all our publications when you become a Member of Pat McKeough's Inner Circle Pro.