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Successful Inv refreshes Molson Coors Canada buy

2015-03-02 21:23 ET - In the News

The Successful Investor, in the March, 2015, issue, refreshes its buy of Molson Coors Canada Inc.'s Class B shares, recently $92 ($84 for the Class A shares). The Investor said buy 17 times from June, 2005, to October, 2014, at prices ranging from $40 to $99 (the stock split 2 for 1 in September, 2007). A $1,000 investment for each of the 17 buys is now worth $29,820. Molson earned $768.5-million (U.S.) or $4.13 (U.S.) a share in 2014, up from $727.1-million (U.S.) or $3.95 (U.S.) a share a year earlier. The increase came despite lower revenue, which fell to $4.1-billion (U.S.) from $4.2-billion (U.S.), as a result of selling less beer. Cost-cutting measures offset this drop. They also allowed Molson to raise its annualized dividend to $1.64 (U.S.) from $1.48 (U.S.), for a new yield of 2.5 per cent (2.3 per cent for the Class B shares). As well, Molson was able to lower its long-term debt to $2.3-billion (U.S.) at the end of 2014 from $3.2-billion (U.S.) at the end of 2013. The Investor expects that further cost-cutting measures will lead to even more money for debt repayments and dividends. Molson is a buy. The Class B shares, which have fewer voting rights but are more liquid and receive the same dividend, are the better choice.

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