Constellation Brands (STZ), the maker of Corona and Modelo beers, will likely hike its dividend on April 10 when it announces fiscal year-end earnings. STZ stock looks undervalued. This is based on its average yield over the past five years and the company's strong free cash flow (FCF).
STZ is at $184.01 today, well off its 6-month high of $244.31 on Dec. 9, 2024, although up from a low of $161.05 on Feb. 12. STZ is down based on fears of tariffs, as its beer plants are located in Mexico, and the effect this will have on future sales.
