The stocks of companies that manufacture and distribute alcoholic beverages are known as alcohol stocks. They include shares of companies that produce and sell beer, wines, and other liquor. Many alcohol companies have been well-established over multiple decades and have a history of steady cash flow, high and regular dividends, and attractive returns to shareholders.
The alcohol industry has been well-settled in the US for the past over 85 years. With so many options for purchasing alcoholic beverages such as grocery stores, restaurants, or online ordering, the demand for liquor keeps on increasing steadily. In the past few years, the growth in demand has slowed down slightly, owing to the introduction of new alternative beverages. However, alcohol companies and alcohol stocks are here to stay and offer excellent investment opportunities.
|STZ||Constellation Brands, Inc.||$214.95||30.26%||40.3B|
|MGPI||MGP Ingredients, Inc.||$62.80||56.26%||1.4B|
|WVVI||Willamette Valley Vineyards, Inc.||$14.75||139.06%||73.2M|
|EAST||Eastside Distilling, Inc.||$2.84||129.03%||37.8M|
|WVVIP||Willamette Valley Vineyards, Inc.||$6.50||18.40%||73.2M|
|BUD||Anheuser-Busch InBev SA/NV||$57.17||7.83%||91.5B|
|FMX||Fomento Economico Mexicano, S.A.B. de C.V.||$83.51||51.59%||27.4B|
|TAP||Molson Coors Brewing Company||$43.62||32.54%||9.5B|
|SAM||The Boston Beer Company, Inc.||$485.10||-54.25%||6.0B|
|CCU||Compania Cervecerias Unidas S.A.||$16.51||43.19%||3.1B|
|WTER||Alkaline Water Company Inc.||$1.63||30.40%||162.2M|
Factors to Consider Before Investing in Alcohol Stocks
Alcohol stocks do not experience much volatility and follow a low-risk high-reward profile. The consolidation in the alcohol industry has delivered further solid investment opportunities for investors. Yet, investors must consider the financial strength and efficiency of alcohol stocks before investing in them.
Investors must analyze the past five, three, and one-year returns, dividend yield, P/E ratios, earnings per share, cash flow, and other fundamental aspects before investing in alcohol stocks. At the same time, alcohol stocks are largely influenced by government policies, regulations, mergers & acquisitions, new trends in the industry, and raw material costs. Therefore, a thorough analysis of the macroeconomic factors is also recommended.
Which Alcohol Stocks Should I Buy?
Among the top alcohol producers and distributors, we have selected the best alcohol stocks for investors to pick from. Alcohol stocks form excellent avenues of investment for investors looking for strong profits and regular dividends.
Investors must select alcohol stocks with a stable track record, high operating margin, healthy cash flow, and optimum valuation. The impact of government regulations on pricing power, tax rates, and transportation costs must also be taken into account before making the selection.