STZConstellation Brands, Inc.Stock — Consumer
Yield
2.97%
$1.03/qtr at $138.68
Dividend
$1.03/qtr
Raised to $1.03 in Jan. 2026, from $1.02
Payout ratio
37.0%
Of trailing earnings
Pays
Quarterly
House verdict
Covered, compounding. A 2.97% yield on a 37.0% trailing payout is covered with room to spare: $1.03 a quarter, raised in January 2026 from $1.02, extending 10 years of increases. The payout leaves most earnings retained, so the dividend is funded by current profit with a wide cushion.
Key risk: Concentration — beer carries the portfolio, so a sustained volume decline is what would narrow the 37.0% cushion first.
Changes if: Trailing payout rises well above 37.0%, or the annual raise stops.
- ✓Payout-coverage check: 37.0% of trailing earnings — a wide cushion; most earnings stay retained.
- ✓Yield check: 2.97% indicated — $1.03/qtr × 4 at the $138.68 close on Oct. 23, 2026. Real, earned cash dividend, not return of capital.
- ✓Dividend growth check: 10 years of increases; the latest raise, to $1.03 from $1.02, took effect with the January 2026 payment cycle.
What this grade doesn't say: It screens the dividend only — covered, real, compounding. It says nothing about valuation or price: a well-covered payer can still be overpriced, and its price can still fall.