10 Best Dividend-Paying Beverage Stocks to Buy

7. Constellation Brands, Inc. (NYSE:STZ)

Number of Hedge Fund Holders: 36

Constellation Brands, Inc. (NYSE:STZ) is a leading international producer and marketer of beer, wine, and spirits with operations in the US, Mexico, New Zealand, and Italy.

Constellation Brands, Inc. (NYSE:STZ) reported mixed earnings for its Q3 2025, with non-GAAP EPS of $3.25, falling short of estimates. However, the company’s beer business (which brings in the lion’s share of its revenue) achieved a net sales increase of 3% in Q3 of 2025, supported by higher shipment volumes. Its core brands continued their uptick during the quarter as Modelo Especial grew by 3%, while Pacifico also surged by 20% and remained the number four dollar share gainer across the total beer category. Constellation’s Wine and Spirits segment continues to struggle, reporting a 14% YoY decline in net sales. The company generated an operating cash flow of $2.6 billion for the first nine months of FY 2025, up 9% YoY, while its free cash flow also surged by 13% YoY to $1.6 billion. STZ announced a quarterly dividend of $1.01 per share in January, in line with the previous.

The stock price of Constellation Brands, Inc. (NYSE:STZ) dropped to a 4-year low of $160.79 recently, primarily due to its lower-than-expected performance in Q3 2025 and the ongoing threat of looming tariffs on Mexico. However, it must be noted that Warren Buffett’s Berkshire Hathaway has recently disclosed a new investment in the beverage company, reinforcing wider investor confidence. Berkshire owned $1.24 billion of Constellation Brands, Inc. (NYSE:STZ) stock at the end of 2024, after purchasing 5.62 million shares in the fourth quarter.