Page 80

CAPITAL RETURNS VIA DIVIDENDS ■■

■■

The Company primarily utilises dividends to return capital to its shareholders. The dividend policy is conservative, and hence sustainable. It has been 15 quarters since the Company increased its quarterly dividends. However, the Company has promised to increase dividends as soon as a leverage ratio of 3.75x debt to EBITDA is achieved sometime near 2H 2019. The Company expects the quarterly dividend to increase by +40% to +75% ($0.57 to $0.71) from the current level ($0.41)*. This will increase the dividend yield from 2.56% to the range of 3.55% 4.42% (based on $64.10 share price as at 23 November 2018).

QUARTERLY DIVIDENDS SINCE 2005, AND FORECASTS FOR 2019 $0.60 $0.50 $0.40 $0.30 $0.20 $0.10

31/03/05 30/06/05 30/09/05 31/12/05 31/03/06 30/06/06 30/09/06 31/12/06 31/03/07 30/06/07 30/09/07 31/12/07 31/03/08 30/06/08 30/09/08 31/12/08 31/03/09 30/06/09 30/09/09 31/12/09 31/03/10 30/06/10 30/09/10 31/12/10 31/03/11 30/06/11 30/09/11 31/12/11 31/03/12 30/06/12 30/09/12 31/12/12 31/03/13 30/06/13 30/09/13 31/12/13 31/03/14 30/06/14 30/09/14 31/12/14 31/03/15 30/06/15 30/09/15 31/12/15 31/03/16 30/06/16 30/09/16 31/12/16 31/03/17 30/06/17 30/09/17 31/12/17 31/03/18 30/06/18 30/09/18 Dec 18E Mar 19E Jun 19E Sep 19E Dec 19E

$0.00

Source: Molson Coors 2018 Q3 10-Q Report – p64

80

* Data Source: Molson Coors presentation – Barclays Consumer Staples Conference – 5 September 2018

Profile for Richard

Elevation Capital Research Annual 2018  

Elevation Capital Research Annual 2018