Topic: How To Invest

Dividend Advisor Hotline – Friday, October 25, 2019

Article Excerpt

MOLSON COORS CANADA INC. is a buy. The company, Toronto symbols TPX.A $77.99 and TPX.B $76.30, last raised its quarterly dividend for investors with the September 2019 payment. They now 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 3.8% for investors holding class A shares and 3.9% for class B shares. The company recently formed an alliance with Canadian cannabis producer HEXO Corp. (Toronto symbol HEXO). Molson now owns 57.5% of that joint venture (called Truss) focused on developing cannabis-infused non-alcoholic beverages. Truss plans to launch several of those beverages, mainly flavoured-water drinks, in mid-December 2019. The joint venture will initially launch six products, including drinks containing tetrahydrocannabinol (THC), the psychoactive compound in cannabis that produces a high. It will also make beverages containing cannabidiol (CBD); that non-intoxicating cannabis compound is used medicinally, although its benefits remain largely untested. Truss estimates that cannabis-infused drinks could eventually account for 10% to 20% of…