Topic: How To Invest

Dividend Advisor Hotline – Friday, May 8, 2020

Article Excerpt

MOLSON COORS CANADA INC., Toronto symbols TPX.A $57.53 and TPX.B $57.48, is now a hold. The beer brewer last raised your quarterly dividend with the September 2019 payment. Investors receive $0.57 U.S. a share, up 39.0% from $0.41 U.S. The new annual rate of $2.28 U.S. yields a high 5.5% for both the class A and B shares. The COVID-19 pandemic has forced many bars and restaurants to close. That has hurt Molson, as those businesses accounted for 23% of its 2019 sales (17% in North America and about 50% in Europe). As a result, the company has indicated that it may cut or suspend the dividend until its sales and earnings improve. In the quarter ended March 31, 2020, Molson’s sales fell 8.7%, to $2.10 billion from $2.30 billion a year earlier (all amounts except share prices in U.S. dollars). If you factor out currency rates, sales declined 8.2%. Excluding costs related to the planned closure of two breweries in North America and…

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