Premium spirits manufacturer and seller,
), enhanced its annualized dividend rate by 9.8%, marking an
increase of 8 cents to 90 cents per share. Earlier, the company's
annualized dividend was 82 cents per share. The dividend yield
based on the new payout and the last closing market price is
BEAM INC (BEAM): Free Stock Analysis Report
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As a result of this revision, the company announced an increased
first quarter dividend of 22.5 cents per share versus 20.5 cents
paid earlier. The raised dividend will be paid on Mar 1, 2013 to
shareholders of record as of Feb 6.
The increased dividend reflects substantial long-term growth
opportunities for the company, with stringent focus on boosting
shareholder value by regular dividend payout. The company targets
an earnings payout ratio of 35% - 40% for the longer term.
Further, the company's dividend increase mirrors management's
confidence in the company's ability to deliver sustainable,
profitable long-term growth.
Last week, Beam agreed to sell some of its economy brands and
related inventory to Luxco in order to simplify its portfolio as
well as enhance its focus on strengthening its most profitable
segments - Power Brands and Rising Stars.
The brands to be sold under the deal are Wolfschmidt vodka,
Calvert (Lord Calvert Canadian, Calvert Extra, and gin), Bellows
(blended whiskey, Bourbon, gin, rum, Scotch and vodka), Dark Eyes
vodka, Canada House Canadian, and Tempo Triple Sec, which are a
part of Beam's Value Creators segment. These brands contributed
about $30 million to the company's 2012 revenues, with total
volumes sold reaching nearly 1.8 million cases.
Based in Deerfield, Illinois, Beam produces and sells branded
distilled spirits products worldwide. Beam segregates its brands
into four segments including Power Brands, Rising Stars, Local
Jewels and Value Creators. The company sells its spirits products
primarily through direct sales forces to distributors, as well as
through joint ventures, third-party distributors, and global or
regional duty free customers.
Beam currently has a Zacks Rank #3 (Hold). Not all beverage
companies are performing as disappointingly as Beam. Other
wineries and distillers that have a favorable Zacks Rank and are
performing well include
Boston Beer Co. Inc.
Compania Cervecerias Unidas S.A.
), both of which carry a Zacks Rank #1 (Strong Buy) and
), which carries a Zacks Rank #2 (Buy).