Sunday, January 19, 2014

Can You Remember This? Coffee Improves Memory, Will Coffee Stocks Improve Your Portfolio?

coffee beans provide health benefits
Researchers at Johns Hopkins University have discovered in a recent study that memory can improve from drinking a cup of coffee. Memory increased by 10% according to the research. This is just one of the many health benefits of coffee and caffeine. Research has shown that it may help prevent skin cancer, assist with weight loss, prevent diabetes, and reduce prostate cancer risks.  

So how does an investor participate in this healthy beverage. There are over 20 stocks in the production of coffee and tea, according to the free list of coffee stocks at, with several of them paying dividends. This list excludes Coca Cola (KO) and Pepsico (PEP), which produce caffeinated soft drinks.

One major vendor of coffee is Starbucks (SBUX), the largest coffeehouse retailer in the world, with coffee shops in 50 countries and more than 18,000 shops worldwide. The stock trades at 23 times forward earnings, and carries a yield of 1.4%. Earnings per share for the latest quarter were nominal, however revenues rose 12.8%. Starbucks will announce earnings for the quarter ending December on February 23. The company has $3.23 billion in cash and $1.3 billion in debt.

Green Mountain Coffee Roasters (GMCR), based in Waterbury, Vermont, trades at 25 times trailing earnings and 18.1 times forward earnings. Earnings for the latest reported quarter spiked 38.2% on a 10.5% rise in revenues. Next earnings announcement will be reported early February. The stock sports a yield of 1.3%.

A major wholesaler of coffee is Coffee Holding Co. (JVA), which also markets private label coffee and branded coffee in the US and Canada. The company has 90 varieties of raw green coffee beans which it imports from around the world and sold to large and small operators. The stock trades at 31 times forward earnings. The company generated negative earnings for the latest quarter and does not pay a dividend. 

For a free list of coffee, tea and caffeine companies which you can download, sort, and update, go to

Disclaimer: Author didn't own any of the above at the time the article was written.


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