With an annualized dividend growth rate of 10%,Molson Coors
)isn't shy about returning money to shareholders despite a
challenging operating environment.
In February, as part of its Q4 earnings release, the company
raised its quarterly dividend 16% to 37 cents a share, giving it
an annual yield of 2.6%.
In the highly competitive beer market, where demand is waning,
Molson Coors is holding its own, partly because of strength in
the craft beer business in the U.S.
Formed in 2005 by the merger of Molson Canada and Coors in the
U.S., the company has a three-year earnings growth rate of 4% and
a sales growth rate of 11%. Sales growth like that is nothing to
scoff at, although meaningful growth has been hard to come by in
In 2007, the company formed a joint venture with SABMiller and
named it MillerCoors. Brewing operations were basically combined
to better compete with Anheuser-Busch InBev in the U.S.
Molson Coors sells a portfolio of leading premium brands,
including Coors Light, Molson Canadian, Carling, Staropramen and
Blue Moon across the Americas, Europe and Asia. The company also
distributes popular Mexican brands like Corona, Negra Modelo and
The company's first foray into emerging markets came in 2012
when the company acquired European brewer StarBev from CVC
Capital Partners for just over $3.5 billion.
Last month, Denver-based Molson Coors reported Q4 profit of 68
cents a share, down 1% from a year ago. Sales were flat at nearly
$1.03 billion. Worldwide beer volume rose 8.5% to 59.7 million
Molson Coors Brewing is trading tightly after a recent base
breakout over 57.28. The 5% buy zone extends to 60.14. An up/down
volume ratio of 1.1 points toward solid demand for shares in