Thanks for joining DividendStocks.com, the daily newsletter built for dividend and income investors like you. We’re thrilled to have you on board and can’t wait to help you discover the best dividend opportunities out there. Before we can start sending your daily insights, please take a quick moment to confirm your subscription: Click Here to Confirm Your Subscription to DividendStocks.com Here’s a small glimpse of what you’ll get access to: Dividend Stock Ideas — Each newsletter features dividend stocks with high yields, sustainable payouts, and strong growth potential. Ex-Dividend Stocks — Want to capture upcoming dividend payouts? Find out which stocks are going ex-dividend this week. Market News and Events — Stay in the loop on the latest developments impacting popular dividend names like AT&T, Exxon Mobil, IBM, Procter & Gamble, and Verizon. Bonus: As a thank-you for confirming, you’ll also receive a free PDF copy of Automatic Income, our popular guide to building wealth through dividend investing. Why wait? Let’s get your dividend journey started! Click Here to Start Discovering Top Income-Generating Stocks See you in your inbox soon, The DividendStocks.com Team P.S. Don’t miss out click here to verify your subscription and secure your daily dividend insights and your free investing guide!
This Week's Bonus News Berkshire Bought the Dip—Now Constellation Brands Is ReboundingReported by Leo Miller. Originally Published: 1/9/2026. 
Quick Look - Constellation Brands is rebounding sharply in early 2026 after a 36% loss last year, with its Q3 earnings beating expectations.
- Berkshire Hathaway increased its stake in STZ despite the stock’s downturn, signaling long-term confidence in its recovery potential.
- Strong beer segment performance, improving margins, and analyst price targets point to upside, even as broader alcohol demand remains uncertain.
After a disastrous 2025, shares of beer giant Constellation Brands (NYSE: STZ) are starting 2026 on a much stronger note. Constellation's stock returned -36% last year. Berkshire Hathaway initiated a position in Constellation in Q4 2024 and, as of September 2025, held 13.4 million shares valued at roughly $1.8 billion at the time. Weakness across the beer market and among Constellation's customers contributed to the decline. The company cut its full-year fiscal 2026 (FY2026) guidance in September 2025 due to the challenging backdrop. (Constellation's fiscal year runs several quarters ahead of the calendar year.) While President Trump's official salary is $400,000 per year... his tax returns reveal he's been collecting up to $250,000 PER MONTH from one hidden source. Until recently, most Americans couldn't touch the type of investment that makes up this investment. But thanks to Executive Order 14330, that just changed. If you love investing in disruptive new companies... Discover how to invest in the fund Trump uses to collect this income >> As of the Jan. 8 close, Constellation shares were up more than 7% in 2026 and have rebounded roughly 16% from a 2025 low near $128 in November. The firm's latest earnings report lifted the stock about 5.3%. Below, we break down Constellation's most recent results to provide an updated view on the stock. Constellation Delivers an Impressive Bottom-Line Beat In Q3 FY2026, Constellation reported net revenue of $2.22 billion, a 10% decline but roughly $52 million above analysts' estimates. The company reported comparable earnings per share of $3.06, down about 6% year over year but well ahead of the consensus estimate of $2.63, which had implied a 19% drop. Constellation's beer segment—about 90% of revenue—saw sales fall 1%, but it outperformed the broader beer industry and gained dollar share. Even in a weak market, the beer business has consistently outperformed: Constellation led the category in dollar share gains in Q1 and Q2 FY2026, and this trend continued in FY2025 (company filing). While sales slipped, the beer segment's operating margin improved by 10 basis points, signaling effective cost management. The Wine and Spirits segment weighed on company-wide results, with sales down 51%—largely driven by the divestiture of SVEDKA vodka and part of the wine portfolio. Excluding those divestitures, Wine and Spirits sales fell about 7%. On a pro forma basis that excludes these impacts across the business, total sales declined roughly 2%, which is notably better than the reported 10% drop. Overall, Constellation performed solidly given the backdrop. Coming Off Multi-Year Lows, STZ May Have Room to Run Trading around $148, Constellation has only partially recovered from its 2025 low near $128. That low was also the stock's weakest level since April 2020, shortly after the market turmoil tied to the early COVID-19 crash. In other words, Constellation isn't just bouncing off a short-term trough—it's rebounding from a multi-year drawdown, which leaves meaningful upside if the recovery continues. Berkshire's Purchases and Analyst Targets Support Upside Berkshire bought more than 6 million Constellation shares in Q1 2025. During that quarter the lowest closing price was about $158, roughly 7% above the stock's current level—suggesting Berkshire was willing to buy at prices modestly higher than today's. Berkshire has since added to its stake, indicating continued confidence in the company. Wall Street analysts also see upside: the MarketBeat consensus price target sits at about $182, implying roughly 23% potential upside from current levels. There are still sizable questions for the beer industry. A recent Gallup survey found just 54% of Americans report drinking alcohol—the lowest reading on record. That said, similar lows have occurred in the past before the rate recovered, suggesting the trend may be cyclical rather than structural. A recovery in consumer drinking rates would be a powerful tailwind for Constellation. Combined with Constellation's track record of beer share gains and its current valuation, the company's outlook leans to the upside.
|