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Drink Up The Profits From The Beverage Sector

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For growth, value, and income investors, the beverage sector is bubbling over with appealing stocks ranging from prominent blue chips such as Coca-Cola (NYSE: KO) and Diageo (NYSE: DEO) to promising small caps such as Cott (NYSE: COT) and High Performance Beverages.

Income investors should toast the dividend stream from Coca-Cola, Diageo, PepsiCo (NYSE: PEP) and  Dr.Pepper Snapple Group (NYSE: DPS).

At present, the average dividend yield for a member of the S&P's 500 Index is under 2 percent. Dr. Pepper Snapple Group has a dividend yield of over 3 percent. For Coca-Cola, it is 2.87 percent. Diageo has a dividend yield of 2.86 percent. It is 2.76 percent for Dr. Pepper Snapple Group.

For value investors, Cott is alluring.

Related: Is Coca-Cola The Best Way To Profit From Emerging Market Growth?

It is the largest private label beverage maker in world. Cott's products are on the shelves of Wal-Mart and other major chains. Yet is is selling with a price-to-sales ratio of 0.35. That means that each dollar of sales is going for more than a two-thirds discount in the price of this small cap beverage producer.

For growth investors, High Performance Beverages Company is in the booming sports and energy drink. It is affiliated with Throwdown, which brings tremendous synergies in marketing and branding for the products. That, combined with the celebrity endorsements, brings great growth potential for High Performance Beverages.

As detailed in previous articles on Benzinga, stocks such as Coca-Cola and Diageo have roles in every portfolio due to each company's global presence, reliable returns, and increasing dividend payments. For growth and value in the beverage sector, investors should look to small caps like High Performance Beverages and Cott. There is a stock for all investing styles to toast in the beverage sector.

Posted-In: High Performance Beverages Throwdown Wal-MartLong Ideas Dividends Small Cap Analysis Commodities Economics Markets Trading Ideas Best of Benzinga

 

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