Hair of the Dog: 7 Alcohol Stocks to Help Nurse your Post-New Year’s Hangover

Daniel Banas |

Ah, another New Year, another morning waking up with the refrain from “Auld Lang Syne” screeching like a freight train your head. Your drunk uncle might have told you a little “hair of the dog” is all it takes to keep you from regretting your third champagne toast, but to really get you feeling ready to tackle 2015, why not look into these seven promising alcohol stocks instead? 

Diageo plc (DEO)

Market Cap: $73.07 billion

P/E: 20.12                                                                

Dividend Yield: 2.95%

Names like Johnnie Walker, Crown Royal, J&B, Tanqueray, and Ketel One might be making you feel a wee bit queasy right now, but if they were in your portfolio as opposed to your liver in the waning moments of 2014, you’d be feeling right as rain right now. These and many more are all labels that are manufactured and distributed by Diageo plc, which has had a bit of tumultuous year, yet it’s still up 1.46% in the last quarter, and with a generous dividend of 3.72%, stockholders can afford a little indulgence around the holiday season.

Annheuser-Busch InBev SA/NV (BUD)

Market Cap: $185.88 billion

P/E: 20.54

Dividend Yield: 2.87%

A new year may bring a great deal of uncertainty, which is why a little comfort and nostalgia can be a calming influence on one’s mind and portfolio – and what’s more comforting than an All-American Budweiser? Well, an All-Belgium Budweiser, if you’re an Anheuser-Busch InBev stockholder. The purchasing of Bud manufacturer Anheuser-Busch to the Belgian company InBev back in 2008 may have led to an existential crisis for many a Nascar fan that was not unlike the despondent feelings that can creep up after a night of hedonistic revelry. However, the 11.55% increase in stock price throughout 2014 will put spring in the step of even the most dyed in the wool patriot by year’s end.

Craft Brew Alliance (BREW)

Market Cap: $262.85 million

P/E: 86.44

Dividend: N/A

Craft Brew Alliance took a bit of a hit in 2014 (down 15.65%), though the brewer of craft beers and ciders under the Kona, Widmer Brothers, Redhook, Omission, and Square Mile names seems to be well-positioned for 2015. Craft Brew Alliance stock jumped 2.29% in December, and by now it’s clear that the American taste for craft beer is here to stay. Of course, we all may finally come to our senses and realize hard cider basically tastes like fermented Kool-Aid, but that doesn’t seem to be happening any time soon.



Brown-Forman Corporation ($BF.A)

Market Cap: $18.84 billion

P/E: 28.63

Dividend Yield: 1.43%

It’s safe to say the manufacturer, bottler, importer/exporter and seller of classic labels like Jack Daniel’s, Southern Comfort, Korbel Champagne, and much more has had a strong year. In fact, their stock is up 21.61% over the year. Further still, Brown-Forman increased their quarterly dividend by 8.6% last November, marking 31 consecutive years of dividend increases. While their focus on global growth of the brand may have some questioning the short-term wisdom of such a plan, it could very well be a solid long-term strategy to ensure their brands remain relevant for many new years to come.

Ambev S.A. ($ABEV)

Market Cap: $96.79 billion

P/E: 20.53

Dividend: N/A

Those with holdings in Ambev might be nursing a particularly rough hangover based on the company’s poor performance in 2014 (down $15.78%). However, as the producer and distributor of time-tested brands like Bud Light, Corona, Stella Artois, and Labatt Blue among others, it seems probable that Ambev will right the ship before too long – January of 2015 might be a good time to get on board.

Vina Concha y Toro S.A. (VCO)

Market Cap: $1.45 billion

P/E: 20.90

Dividend Yield: 1.78%

Even if you’re partying went far, far out of control the night prior, a glass of wine can still lift the spirits– as can holdings in Vina Concha y Toro S.A. The Chilean wine producing and exporting company is up 1.61% over the past year, and although it’s a small company, they still offer a decent 0.86% dividend. Last summer, The Street even listed Vina Concha y Toro as one of the three stocks boosting the food and beverage industry – a commendation that’s well worth a toast in 2015.

Fomento Economico Mexicano (FMX)

Market Cap: $81 billion

P/E: 152.34

Dividend Yield: 3.52%

Latin America may seem like a far-off paradise to many investors this January, but while you can’t enjoy the sunlit beaches of Mexico, you can still benefit from investing in promising companies like Fomento Economico Mexicano. Through its subsidiaries, the company operates as a bottler of Coca-Cola trademark beverages throughout Mexico as well as Bogota and Colombia. The stock took a hit in 2014, but Credit Suisse listed Fomento Economico Mexicano as a top five long idea in mid-December. Granted, this one doesn’t involve any alcohol, but look, maybe you should take a break. Now why don’t you curl up on the couch and binge watch some Netflix (NFLX) like normal person dealing with a New Year’s hangover?

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer

Companies

Symbol Name Price Change % Volume
FMX Fomento Economico Mexicano S.A.B. de C.V. 90.43 0.37 0.41 360,201 Trade
DEO Diageo plc 139.82 2.20 1.60 291,804 Trade
ABEV Ambev S.A. American Depositary Shares (Each repres 6.38 -0.02 -0.31 6,148,334 Trade
BUD Anheuser-Busch Inbev SA Sponsored ADR (Belgium) 117.56 1.81 1.56 731,331 Trade
VCO Vina Concha Y Toro 34.43 -0.84 -2.38 642 Trade
BREW Craft Brew Alliance Inc. 19.45 0.05 0.26 22,780 Trade
NFLX Netflix Inc. 195.75 -0.57 -0.29 2,160,535 Trade
BFA Brown-Forman Corporation n/a n/a n/a 0 Trade

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