Goldman Sachs has upgraded Anheuser-Busch InBev (NYSE: BUD) from Neutral to Buy, raising its 12-month price target to \$88 from \$70.10. This shift reflects a renewed confidence in the brewer’s strategic direction, particularly its accelerated debt reduction and improved operational performance.
📊 Contrary to a downgrade, Goldman Sachs’ recent action is an upgrade, signaling a positive outlook for AB InBev. The company’s focus on deleveraging and enhancing margins has positioned it favorably among global consumer goods companies. Analysts anticipate a return to “best-in-class” status, driven by strong emerging market performance and a premium product mix.
💵 Dividend Fundamentals
🔹 Dividend Yield: Approximately 1.18%
🔹 Annual Dividend: \$0.78 per share
🔹 Payout Ratio: 23.04%
🔹 Ex-Dividend Date: May 7, 2025
🔹 Next Payment Date: June 6, 2025
AB InBev’s dividend strategy reflects a balance between rewarding shareholders and maintaining financial flexibility. The company’s commitment to increasing its dividend payout ratio to 40% by 2026 underscores its confidence in sustained earnings growth.
In summary, Goldman Sachs’ upgrade of AB InBev to Buy is based on the company’s effective debt management, operational improvements, and strategic focus on premium products. These factors contribute to a positive outlook for the stock, with potential for both capital appreciation and dividend income.