Molson Coors Brewing
Dividend Yield: 2.4%
While sipping on a Coors Light might leave a lot to be desired, investing in its maker Molson Coors Brewing (TAP) sure doesn’t.
So far this year, Molson Coors has posted a solid 23% climb — 5 percentage points better than the broader market. In the most recent quarter, TAP’s profits rose 165%, thanks in part to its acquisition of European brewer StarBev. That was good for earnings of $1.51 per share — 13 cents better than analysts were expecting. Oh, and its revenue growth continue a quarterly streak that’s well into the double digits.
That’s only half of TAP’s appeal, too. The company has been paying a dividend since 1970, and that payout has more than tripled over the last decade. Right now, the 32-cent quarterly payout is good for a yield north of 2.4%.
There’s good reason to think that payout will keep growing too. For one, the current dividend makes for a low payout ratio right around 30% based on 2014 earnings. Plus, Molson currently has around $800 million in cash and short-term investments, along with annual operating cash flow of $983 million.