Non-Alcoholic Beverage Stocks for the Summer

Many people are non-drinkers of alcoholic beverages. So what do they drink instead of beer and wine, besides water? Soft drinks, soda, pop, and soda pop. Whatever you call it in your part of the country, large numbers of consumers are still drinking a huge amount of soft drinks, especially now that summer is here with picnic season. This, in spite of the criticism that the manufacturers are taking because of the sugary content of these drinks. Even the tax attack threat of sugar drinks.

Coka Cola (KO) is transitioning towards more healthier beverages along with the other major soft drink  producers. The company just reported a year-over-year 7.5% earnings reduction, on a 4.2% drop in revenues. The stock sports a 22 price to earnings ratio, and trades at 19 times forward earnings. Coke pays a 3% yield.

The biggest competitor of Coca Cola is Pepsico (PEP), which trades at 20 times trailing earnings and 18 times forward earnings. Revenues for the latest quarter flat, however  earnings spiked 13.1%. This company also pays a yield of 3%.

Dr. Pepper Snapple Group (DPS) is another big player in the Beverage pool. It trades at 18 times trailing earnings and 16 times forward earnings. Earnings for the quarter were up an incredible 46.2%.  It pays a yield of 2.8%

According to the list at WallStreetNewsNetwork.com, there are over a dozen beverage stocks to choose from. Several of these stocks pay dividends.

Disclosure: Author owns KO.

By Stockerblog.com

The Tax Attack on Soft Drink Companies: What About the Stocks?

If you have been watching the news about the soft drink industry recently, you would notice what I call the Tax Attack on soft drinks with lots of sugar. Will sugary soda become the next tobacco? San Francisco is now considering cutting down on the consumption of these drinks through a proposed soda tax following in the footsteps of other cities. Even Mexico is proposing to tax soft drinks with sugar along with junk food.

Just in the last six months, Coca Cola has dropped by about 6%, versus the S&P 500 which is up over 10% during the same period. What's a contrarian to do? By the way, have you heard about the new Coca Cola is part of a Healthy Lifestyle ad? (You probably won't see it in the United States.)

Obviously, Coke is moving towards more healthier drinks along with the other major beverage producers. The company just reported a year-over-year 5.9% earnings growth, on a 2.5% drop in revenues. The stock sports a 20.5 price to earnings ratio, and trades at 17.9 times forward earnings. The company provides its shareholders with a 2.8% yield.

Coke's biggest competitor is Pepsico (PEP), which trades at 20 times trailing earnings and 18 times forward earnings. Earnings that were recently reported were almost flat on the positive side, with revenues up slightly at 1.5%. The yield on the stock is 2.7%.

According to the list at WallStreetNewsNetwork.com, there are over a dozen beverage stocks to choose from, including Dr Pepper Snapple Group, Inc. (DPS) with a PE of 15.4, a forward PE of 14.5,  and yielding 3.3%. There is also SodaStream International Ltd. (SODA), which is a different type of competitor. The stock trades at 18.6 times forward earnings.

Disclosure: Author owns KO indirectly.

By Stockerblog.com

Will the Soft Drink Ban in New York City Affect Beverage Companies?

Soft drinks, soda, soda pop, pop. No matter what you call it, and depending on what part of the country you live in you may call it something different, it all refers to the sugary flavored beverages that are popular around the world. Now the City of New York wants to control your consumption of these beverages.

The vote was 8 to 0 by the New York Board of Health, with one member abstaining, to ban the serving of soda beverages in cups greater than 16 ounces. Surprisingly, the member who abstained did so because he didn't think the ban was strong enough. The idea behind this ban, which goes into effect in March, was to reduce obesity.

Sometimes when governments ban something, it has the reverse effect and may actually increase consumption. Some soda companies experienced a stock price drop when the news came out even though the stock market was up, but maybe this has created a buying opportunity. Look at marijuana today and alcohol during the Depression. There are almost twenty stocks in the beverage soft drink industry, with half a dozen companies paying dividends in excess of 1%, according to WallStreetNewsNetwork.com.

One of the highest yielding beverage companies is Dr Pepper Snapple Group, Inc. (DPS), which yields 3.0%. It trades at 15.8 times trailing earnings, and 13.7 times forward earnings. The company's products include Dr Pepper, Crush, Canada Dry, Sunkist soda, Schweppes, 7UP, A&W, RC Cola, Squirt, Sun Drop, Diet Rite, Welch's, and Country Time. Earnings for the latest quarter were up 3.5% on a 2.5% boost in revenues.

Of course, there is Coca Cola (KO), which has one of the most popular brands in the world. The stock trades at 20.2 times earnings, with a forward price to earnings ratio of 17.5. Earnings were flat for the latest quarter. The company, whih markets such products as Diet Coke, Fanta, Sprite, Coca-Cola Zero, vitaminwater, Powerade, and Minute Maid, pays a yield of 2.7%.

For consumers who like to create their own beverages, SodaStream International Ltd. (SODA) can provide that option. The stock has a P/E ratio of 24.9, and 14.4 times forward earnings. It does not pay a dividend.

Can you guess which beverage stock pays a 3.1% yield? Check out the free list of beverage soft drink stocks at WallStreetNewsNetwork.com.

Disclosure: Relatives of the author own KO.

By Stockerblog.com