Molson Coors Brewing Co. (TAP) on Friday said it boosted its
quarterly dividend by four cents, or 20%, setting the beer maker
apart from many companies which have been slashing or suspending
dividends to conserve cash.
The brewer of such beer brands as Molson Canadian and Coors
Light said a quarterly dividend of 24 cents a share will be paid
June 15 to shareholders of record as of May 29.
Chief Executive Peter Swinburn said Molson Coors has bolstered
its financial position since it was formed from the 2005 merger of
Molson Inc. and Adolph Coors, by building brands, trimming costs,
paying down debt and boosting cash flow.
The dividend hike comes a week after Molson Coors said
first-quarter earnings more than doubled on increased prices and
cost cutting. It also comes amid slow growth in the beer industry,
especially in the Western world, causing many established brands to
lose market share to local upstarts. Those conditions led to
InBev's acquisition of Anheuser-Busch last year.
Last year, Molson Coors and SABMiller PLC combined their U.S.
brewing operations to create a more formidable rival to Anheuser
and its dominant Budweiser brand. That MillerCoors combination
reported a 51% jump in first-quarter earnings on a pro forma basis,
despite a 1.9% drop in sales volume.
Shares closed at $42.02 on Thursday and didn't trade premarket.
The stock is down by roughly half over the past 12 months.
-By Mike Barris, Dow Jones Newswires; 201-938-5658;
mike.barris@dowjones.com