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Top Seven Beer Stocks with Dividends

By Edited Mar 25, 2016 0 0
A pint of Grolsch
Credit: By Strom Carlson (Own work) [CC-BY-SA-2.5 (www.creativecommons.org/licenses/by-sa/2.5)], via Wikimedia Commons

A cold pint after work on a summer day! What can be better? If you love your beer as much as I do, you will want to own some beer stocks that help your portfolio by paying nice healthy dividends for holding them. Even if you don’t like beer, owning beer stocks can be a great sector to have some exposure in. Like many other sin stocks, the companies tend to do well through good and bad economic times. I especially like stocks that pay regular dividends, because it shows that a company feels confident about its revenues and income and desires to use that income to reward shareholders.

 AmBev (ticker: ABV) Ambev is a large Brazilian based company whose ADR’s trade on the NYSE. The company operates within many parts of South America, primarily Brazil, and also in Canada. The company distributes and sells beer as well as bottled water and soda beverages. The company has agreements to sell and market Budweiser in certain non-US markets.  It pays out a hefty dividend in somewhat irregular payments that in some years is more than 50% of net earnings. Ambev rewards you for holing the shares. In the past decade there have been two stock splits. ABV is a fantastic beverage stock!

FEMSA (ticker: FMX) FEMSA is a Latin America based company that has ADR shares listed on the NYSE. The company is a major shareholder in the Heineken Group. It also is a large distributor of carbonated soda and beer beverages in Mexico and Brazil. The company manufactures bottles, and other materials to package the products, and also owns a large chain of convenience stores in Latin America. FEMSA pays an irregular dividend usually semi-annually. Earnings can support a major increase in dividend payouts if suitable investments are not found making FMX a great beer stock play.

SABMiller (ticker: SBMRY.PK) SAB Miller is the second largest beer company in the world behind Anheuser-Busch-InBev. The Company operates in every major region of the world. In the US the company’s flagship line is the Miller line of beers, but they also manufacture and distribute Pilsner Urquell, Blue Moon and Coors Light and many other great brands. The company pays irregular dividends, based on earnings. Don’t let the fact that the ADR’s are traded on the pink sheets discourage you from investing the company is quite profitable and is listed on the LSE and on the Johannesburg stock exchange. Altria Group (MO) also owns a sizeable holding of SABMiller if you would rather go with a more diversified sin stock holding.

Molson-Coors (ticker: TAP) Molson-Coors brews the Molson and Coors products within the US and Canada. They also are a licensee of many different brands within the US including Amstel, Heineken and Asahi and many others. The company has a long history of quarterly dividend payments, and frequently increases the dividend rate. The company also licenses out its brands in international markets. If you are looking for a great steady dividend payer TAP is a great choice.

Hoegaarden Brewery in Belgium(47894)
Credit: By LLN (selbst aufgenommen / own work) [GFDL (www.gnu.org/copyleft/fdl.html), CC-BY-SA-3.0 (www.creativecommons.org/licenses/by-sa/3.0/) or CC-BY-SA-2.5-2.0-1.0 (www.creativecommons.org/licenses/by-sa/2.5-2.0-1.0)], via Wikimedia Commons

Anheuser-Busch InBev (ticker: BUD) InBev is the largest beer company in the world. It merged with Anheuser-Busch in 2008. The company owns more than 200 different beer brands. Budweiser, Bass and Becks are some of its brands. The company has existed as a brewing operating since 1366. The company pays a nice yearly dividend. Through a tax agreement with Belgium the automatic dividend tax withholdings are at a lower rate for US and Canadian citizens. If you want to own a truly global diversified beer holding, BUD is a fantastic stock.

Heineken NV (ticker: HINKY.PK) Heineken NV is a large brewer that owns some of the most popular international beer brands. Heineken, Foster’s, Dos Equis, Tiger and many others are some of its brands. The company is based in Amsterdam, and the ADR shares are traded on the OTC market. Many other large international companies like Nintendo and Volkswagen are traded on the OTC market. The company pays a semi-annual dividend in April and August. The strong dividends and the growth potential are worth giving HINKY a look.

Compania Cervecerius Unidas (ticker: CCU) CCU is a brewer that licenses many great beer brands and distributes them in Chile and Argentina. Some of its licenses include Heineken, and Budweiser. The company has been in business since 1850. It is based in Santiago, Chile. The company also sells and distributes soft drinks. The company has a nice 34% payout ratio on dividends with room to grow. Dividends are paid semi-annually in April, and December. CCU is a great beer stock to get exposure to Chile and Argentina.

Sadly, my favorite brewer Samuel Adam’s (ticker: SAM) is not a dividend stock. It has had phenomenal growth in share price over the years, but without a dividend it won’t be in my portfolio. Now that the growth is slowing hopefully management will start paying shareholders to hold the stock! 



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