Dividend Information About Molson Coors A: Everything You Need To Know Before Its Ex-Dividend Date Sep 5, 2025

Generated by AI AgentAinvest Dividend Digest
Monday, Sep 1, 2025 7:35 pm ET2min read
Aime RobotAime Summary

- Molson Coors A announced a $0.47/share cash dividend, payable on Sep 19, 2025, marking a 33% increase from its 10-year average.

- Analysts cut 2025 EPS estimates by 14.6% amid declining U.S. alcohol consumption and weak sales forecasts, pushing the stock to a Zacks #5 (Strong Sell) rating.

- Institutional investors reduced holdings by double digits in Q1 2025, reflecting concerns over structural challenges and sluggish 5% annual growth projections.

- While the dividend offers income potential, analysts caution that structural industry shifts and uncertain consumer trends weaken the long-term investment case.

Molson Coors A (TAP.A) has recently announced a cash dividend of $0.47 per share, with an ex-dividend date set for Sep 5, 2025. Investors who purchase shares before this date will be eligible to receive the dividend, which will be distributed on Sep 19, 2025. The dividend was officially announced on Jul 16, 2025, and marks an increase from the average of the last 10 dividends, which was approximately $0.355 per share. This recent payment matches the previous dividend of $0.47 per share, issued on Jun 20, 2025, and also reflects a cash dividend format. As such, the upcoming payout aligns with the company’s prior trend of maintaining a consistent cash dividend structure while showing a slight upward movement in the amount per share.

Over the past week, Molson Coors has remained under pressure due to continued downward revisions in earnings and sales forecasts. Analysts have cut current-quarter earnings per share (EPS) estimates by 14.6% and full-year 2025 estimates by 7.2%, reflecting heightened concerns about the company’s long-term growth potential. These adjustments have contributed to a Zacks Rank of #5 (Strong Sell), signaling a very bearish outlook. Sales are expected to contract by 3% in 2025, followed by only a modest 0.7% recovery in 2026. Despite a forward price-to-earnings (P/E) ratio of 9.1x, the company’s sluggish growth—projected at just 5% annually over the next three to five years—results in a PEG ratio of 1.82, suggesting that the stock may not be as undervalued as it appears on the surface. The company’s struggle to adapt to shifting consumer habits, particularly the declining alcohol consumption trend in the U.S., continues to weigh on its fundamentals. Recent reports indicate that alcohol usage in America has fallen to its lowest level since 1939, with beer volumes dropping steadily. These structural challenges have led to underperformance against the broader market and a reevaluation of its investment appeal. Institutional investors have also reduced their stakes, with several large fund managers cutting holdings by double-digit percentages in the first quarter of 2025.

In light of the ongoing headwinds, Molson Coors remains a stock to approach with caution. The recent earnings downgrades, tepid growth expectations, and structural shifts in the beverage industry suggest that the company is in the early stages of a prolonged period of adjustment. Without a clear strategy to reinvent its product portfolio or a reversal in consumer behavior, the investment case for the company remains weak. Investors may find better opportunities elsewhere, especially with stocks offering stronger growth prospects and less exposure to structural risks. The company’s recent dividend announcement, however, provides a small positive signal for income-focused investors, though it does not offset the broader concerns surrounding its long-term profitability and market position. Investors should be aware that the ex-dividend date of Sep 5, 2025, marks the final day to purchase shares and be eligible for the dividend—any shares bought after that date will not qualify for this payout.

Comments



Add a public comment...
No comments

No comments yet