Molson faces higher costs

Article Excerpt

MOLSON COORS CANADA INC. is a hold. The brewer (Toronto symbols TPX.A $92 and TPX.B $89; Conservative Growth and Income Portfolios, Consumer sector; Shares outstanding: 215.7 million; Market cap: $19.2 billion; Price-to-sales ratio: 1.1; Dividend yield: 3.0%; TSINetwork Rating: Average; www.molsoncoors.com) makes most of its products in their local markets. However, its operations in Canada and the U.S. rely on ingredients such as wheat and barley that are vulnerable to tariffs. New tariffs on aluminum and other packaging materials would also add to its costs. Those uncertainties, along with slowing beer consumption, are largely why the stock trades at just 9.7 times the $6.35 U.S. a share that Molson will probably earn in 2025. Even so, the company will raise your quarterly dividend by 6.8% with the March 2025 payment, to $0.47 U.S. a share from $0.44 U.S. The new annual rate of $1.88 U.S. yields a solid 3.0%. Molson Coors is a hold. hold…