Locally based Constellation Brands announced on Thursday that its board of directors has approved the initiation of a dividend program under which the company intends to pay a regular quarterly cash dividend to stockholders of its common stock.
"The decision by Constellation`s board of directors to initiate a dividend represents a significant milestone in the company`s history and demonstrates confidence in our growth prospects, free cash flow generation and financial outlook over the long-term," said Rob Sands, president and chief executive officer, Constellation Brands. "This dividend program reinforces our commitment to delivering value to our shareholders, while continuing to invest in our business and maintaining our targeted leverage range."
Constellation`s board of directors declared an initial quarterly cash dividend of $0.31 per share of Class A Common Stock and $0.28 per share of Class B Common Stock, payable on May 22, 2015 to stockholders of record as of the close of business on May 8, 2015.
The company reported fiscal 4th quarter earnings on Thursday of $208 million in net profits. Earnings per share topped Wall St. estimates. Sales were up 5 percent, matching analysts estimates.
For the fiscal year overall, CEO Rob Sands says the company completed another year of “impressive results propelled by our Mexican beer business.”
He says in the wine and spirits business, Constellation saw strong earnings growth and margin expansion.
