Wednesday, August 21, 2013

Drink Booze, Lose Weight, Buy Booze Stocks, Make Money

It may be hard to believe but moderate drinking of alcoholic beverages, whether beer, wine, or liquor, may help you lose weight or at least prevent you from gaining more weight than you would if you didn't drink at all. Various studies have shown that drinking liquor moderately may improve your health, not just lessening the risk of diabetes and heart disease, but also may help in keeping weight under control.
So how can investors participate in these alcohol health benefits. According to the recently updated list of wine and liquor stocks at, there are over a dozen companies in the alcoholic beverage field, some of which pay dividends.
Beam, Inc. (BEAM) is an Illinois based company that produces bourbon whiskey, Scotch whisky, Canadian whisky, and other beverages under the brands of Jim Beam, Maker’s Mark, Sauza, Courvoisier, Canadian Club, Teacher’s, and Laphroaig. The stock trades at 26 times trailing earnings, a forward price to earnings ratio of 21.5, and pays a yield of 1.4%. Earnings for the latest quarter were down 28.5% on a revenue increase of 6.8%.
Brown-Forman Corporation (BF-B) is another liquor distributor which is famous for its Jack Daniel's and Southern Comfort brands. The stock has a price-to-earnings ratio of 25, a forward P/E of 21, and pays a yield of 1.6%. Earnings for the latest quarter were up 8.3%, with a 9.5% boost in revenues.
Diageo (DEO) is a London based alcoholic beverage distributor that markets numerous brands of whiskey, including Johnnie Walker Scotch whiskey, Crown Royal Canadian whiskey, JeB Scotch whisky, Buchanan's Scotch whiskey, Windsor Premier Scotch whiskey, and Bushmills Irish whiskey. It also sells vodka, rum, and wine. The stock trades at 20 times trailing earnings, and 15 times forward earnings. It sports a higher-than-industry-average yield of 2.8%.
For a free list of wine and liquor stocks, which you can download, sort, and update, go to
Disclosure: Author did not own any of the above stocks at the time the article was written.

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