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Monday, January 27, 2014

Look at Wine for your Health and Wine Stocks for your Portfolio Health

Red Wine - Health Benefits
It may be hard to believe, but lots of news is coming out about how good the 'bad' foods and drinks are. Last April, I published an article on how chocolate can reduce stress. Then just last week, I did a follow-up on chocolate stocks.

Now there is more recent information on Fox News with the title "Chocolate and red wine 'can beat diabetes.'"How can you beat that? The study researched 2,000 women and analyze the benefits of flavanoids in their diet.

Other research has determined that red wine may help prevent memory loss and even reduce the effects of Alzheimer's, primarily due to the resveratrol in the beverage.  Red wine has a much higher concentration of resveratrol than other foods such as peanuts and tomatoes.

Investors can choose from a few options regarding stocks in the production and distribution of wine, but often, wine selling is not a significant portion of the business. Based on the free list at WallStreetNewsNetwork.com, there are over twelve stocks that distribute wine and liquor, two of which pay dividends.

Constellation Brands (STZ) is one of the major producers of alcoholic beverages, with a market cap of $14.4 billion. It is the largest wine producer in the world. The company makes and markets table wines, sparkling wines, and dessert wines. The stock trades at 7.7 times trailing earnings and 19.1 times forward earnings. Drinkers must be consuming a lot of their beverages as earnings for the company's latest quarter were up an incredible 92.7% year-over-year, on an amazing revenue boost of 88.2%.

Diageo (DEO) is a London, England based alcoholic beverage distributor which sells many brands of wine, including Blossom Hill, Sterling Vineyards, Beaulieu Vineyard, Navarro Correas, Acacia Vineyard, Rosenblum Cellars, Piat d'Or, Chalone Vineyard, and Santa Rita. The stock trades at 20 times trailing earnings and 17 times forward earnings. It pays a dividend of 2.9%. 

Brown-Forman Corporation (BF-B) is another liquor distributor which is most known for its Jack Daniel's and Southern Comfort brands. It also sells the Sonoma-Cutrer brand of wines and Corbel California Champaigne. The stock has a trailing price-to-earnings ratio of 27, a forward PE of 24. Latest quarterly earnings were up 19% on 7% rise in revenues. The company sports a yield of 1.6%.

If you are looking for more of a pure play, there is a small one based in Turner, Oregon, Willamette Valley Vineyards Inc. (WVVI), which produces and markets Syrah, Merlot, Cabernet Sauvignon, Cabernet Franc, The Griffin, and Viognier under the Griffin Creek label. The stock trades at 18.7 times earnings, but does not pay a dividend.

Treasury Wine Estates (TSRYF), which tradee at 59 times earnings, distributes the Berenger and Chateau St. Jean wine brands.

For a free list of all the wine and liquor stocks, which can be downloaded, sorted and updated, go to WallStreetNewsNetwork.com.

Disclosure: Author did not own any of the above at the time the article was written.

By Stockerblog.com

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