- Molson Coors completely suspended their dividends during 2020 to help ride out the economic storm caused by COVID-19 and these have now been reinstated.
- Their cash flow performance held up surprisingly well and provides ample free cash flow to provide a high dividend yield of at least 6% on current cost in the future.
- When looking ahead, the consensus estimates from analysts see their earnings recovering, and thus, it increases the probability of seeing higher dividends in the future.
- Since they are generating ample excess free cash flow after dividend payments, their net debt, and thus, leverage should keep decreasing quickly and remove any handbrake on higher dividends.
- I believe that their very high 10% free cash flow yield makes a bullish rating appropriate.
For further details see:
Molson Coors: Dividends Reinstated As Expected With Plenty More To Follow