Constellation vs. Molson Coors: Which Beer Dividend Stock Fits Retirement Income?
Constellation Brands and Molson Coors both face a shrinking U.S. beer market, but their income profiles differ. Molson Coors offers a higher yield and cheaper valuation, while Constellation has grown its dividend without cuts and reported higher quarterly revenue. The article weighs yield, payout history, cash flow, and growth to judge the better long-term retirement income pick.
Both stocks are down this year: STZ 9.22%, TAP 17.7%. Molson Coors estimates the U.S. beer market shrank 4.2% last quarter. Constellation's fiscal Q2 revenue rose 6.1%, beer net sales hit $2.47 billion, and shipments grew 5.5%. Molson Coors posted 3.3% lower revenue, a 5.4% volume decline, and a 45.95% net income drop.
Molson Coors guides 2026 underlying EPS down 11% to 15%; aluminum premium inflation may top $130 million. Its operating cash flow fell from $2.079 billion in 2023 to $1.784 billion in 2025. Constellation's quarterly dividend rose from $0.31 in 2015 to $1.03 without cuts. Molson Coors cut its payout from $0.57 to $0.34 in 2021, later rebuilding to $0.48.
Retirees and income-focused investors may be drawn to Molson Coors’ higher yield, but its weaker growth and past dividend cut could make that income less dependable over time. A shrinking U.S. beer market could also pressure brewery workers, distributors, and communities tied to beer production.