Summer is upon us, and it's time for picnics and bar-b-ques. Beer seems to be the beverage of choice for many of these events. So what about beer stocks? According to a recent report at Academia, the beer market, which was $105 billion in 2010, is expected to reach $137.5 billion by 2015. It appears that beer companies may be worth taking a closer look.
According to WallStreetNewsNetwork.com, there are over a dozen publicly traded beer stocks, and more than half of them pay dividends. For exampe, Molson Coors Brewing Company (TAP) pays one of the
highest yields of the group at 2.3%. It trades at 17 times trailing
earnings and 15 times forward earnings. In addition to the Coors and Molson brands, it also sells Heineken, Amstel Light, Miller Life, Corona, and many others. It distributes its beverages in the US, Canada, and Europe. Earnings jumped 473% for the latest quarter on flat revenues.
Anheuser-Busch InBev (BUD) is a major producer of
beer, with such brands as Budweiser, Becks, Leffe, Bud Light, Michelob, Skol, Brahma, and Antarctica. It has a
trailing price to earnings ratio of 13, a forward PE of 18. Earnings
for the latest reported quarter were down 33% on a 16% rise in revenues.
The stock pays a generous yield of 3.6%.
Maybe beer stocks can round out your summer. To access a free list of all the beer stocks, several of which pay dividends, go to WallStreetNewsNetwork.com.
Disclosure: Author did not own any of the above at the time the article was written.