Constellation Brands

STZ

Market cap $23.7B

Waning consumption of alcohol is taking a toll on this company's top and bottom lines. Investors may be too focused on the past and present when they should be looking to the future.

In Q3, we initiated new positions in Accenture (ACN) and Constellation Brands (STZ). Like all technological innovations, AI should create both winners and losers. We exited Altria (MO), a tobacco company, and Atmos Energy (ATO), a natural gas distributor, choosing to recycle capital into more attractive opportunities as both stocks reaching our target selling ranges.

Alcohol consumption is at multi-decade lows, taking a toll on the industry's bottom line. There are certain slivers of the booze business, however, that are doing just fine.

Sin stocks stand out as resilient plays, blending stable demand, pricing power and strategic shifts that support long-term growth potential.

STZ leans into premiumization, innovation and strong beer momentum to capture shifting consumer tastes and fuel growth.

Downtrodden names expected to come roaring back include Adobe, Block and Salesforce.

Despite recent consumption patterns, alcohol is likely not going away. Constellation's dividend looks increasingly favorable.

The Touchstone Dividend Equity Fund (Class A Shares, Load Waived) outperformed its benchmark, the Russell 1000 Value Index for the quarter ended September 30, 2025. Selection within Information Technology, Health Care, and Financials was the primary driver of positive relative returns, while selection within Communication Services and Materials detracted modestly. The Fund added one new name during the quarter, Sherwin-Williams Co. (SHW) and sold one name, Intel Corp. (INTC).

Investors love dividend stocks, especially high-yield varieties, because they offer a significant income stream and have substantial total return potential.

Google's parent company received a relatively benign antitrust ruling that would not force Alphabet to sell its Chrome browser or Android operating system. Alnylam's shares benefited from a positive phase 3 trial by Regeneron Pharmaceuticals that uses Alnylam's technology. We initiated a position in AppLovin, the only scaled, global advertisement network for gaming properties.