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Buy Constellation Brands for Its Strong Brands and Dividend Growth

- By Ben Reynolds

Consumers are often willing to pay more for the brands they know and trust, giving companies that have well-known brands pricing power. Better pricing power often leads to better financial performance, which in turn can lead to higher share prices.

Companies in the alcohol sector with well-known brands often offer attractive returns. One of our favorites among alcohol stocks is Constellation Brands Inc. (STZ) because of its strong brands and dividend growth.