Sunday, April 27, 2014

Tea is Healthy for You, Tea Stocks Could be Healthy for Your Portfolio

Extensive Health Benefits of Tea

Research has shown that the consumption of tea has man health benefits, such as weight loss and reduction of abdominal fat prevention of strokes, and even help prevent skin cancer.

The Tea Stocks

Investors who want to take a sip of tea stocks have very limited options, as most of the tea related companies are privately held, such as Argo Tea and Bigelow Tea. Fortunately, has turned up a list of a few publicly traded companies involved in the production and sale of tea.

 Tazo Tea

Many of the stocks are non-US companies; however there are a few American companies in the tea business, such as Starbucks (SBUX) which owns Tazo Tea Company. Starbucks bought Tazo in 1999, and open the first Tazo tea shop in 2012. Starbucks also owns Teavana is a specialty tea and tea accessory retailer. The stock trades at 22.5 times forward earnings. It pays a dividend yield of 1.5%.

Celestial Seasonings

Another major player in the tea area is The Hain Celestial Group (HAIN), which owns the Celestial Seasonings tea company. The company sells green tea along with other types of tea and herbal teas, known as tisanes. The natural food company Hain Food Group took over Celestial in 2000. Hain trades at 30 times trailing earnings with a forward P/E of 23. Earnings for the last reported quarter were up an amazing 30% on a 17.5% bump up in revenues. The company's next earnings announcement will be held on May 8.

More Tea

There are several other tea companies that can be found on the free list of tea stocks at The list includes the stock ticker symbol, the P/E ratio, the forward P/E ratio, and the yield. Let's hope High Tea gives new meaning to your stock portfolio.

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


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