Constellation Brands' low valuation reflects a pivot to Mexican beer brands

The annual dividend is $4.12 per share with a 2.5% yield, funded by a nearly $1.7 billion net income in fiscal 2026. This profit rise follows the removal of a $2.8 billion impairment charge from fiscal 2025. Overall sales dropped 10% in fiscal 2026, driven by a 51% plunge in net sales for wine and spirits following the divestiture of Svedka and several wine brands. Even the beer brands, which generate 91% of the revenue, saw a 3% revenue drop. Despite these declines, the company completed a $924 million share buyback. Constellation Brands now trades at a P/E ratio of 17, while the S&P 500 average is 29.