Top 3 Beverage Stocks to Buy Hand Over Fist to Strengthen Your Portfolio in 2024

As we enter 2024, the beverage world is buzzing with excitement and potential. On the front lines: Coca Cola (watt hours -0.55%), pepsico (prototype -0.83%)and boston beer (fountain -0.70%). These beverage kings have mastered the art of keeping things fresh. This year, it looks more like a golden ticket for your portfolio than a routine investment opportunity. Now, let’s take a look at how these industry giants can reinvigorate your investments with a mix of innovative and proven methods to quench your thirst for solid returns.

Coca-Cola offers financial strength, market expansion, and brand dynamics.

Coca-Cola isn’t just about the famous soda we all know. It’s a global powerhouse adept at disrupting the beverage industry. In addition to Classic Cola, there is a lineup as diverse as our taste buds. Think nutritious milk from Fairlife and rich beer from Costa Coffee. These brands are Coca-Cola’s way of showing that it’s not just about sticking to the existing script. We are exploring new flavors and trends. This is Coke’s way of staying ahead of the game while catering to everyone, everywhere.

Coca-Cola’s most recent quarterly results showed net income rising 8% to a cool $12 billion, earnings per share (EPS) jumping to $0.71, and organic revenue rising 9% as organic revenue surged 11%. These numbers demonstrate Coca-Cola’s ability to price wisely and thrive in a variety of market conditions, making it an excellent choice for investors seeking both profit and stability.

But Coca-Cola has established dominance beyond soda sales. The 2023 FIFA Women’s World Cup will place its products front and center in that community, a strategic move that will strengthen its share of the busy non-alcoholic ready-to-drink beverage segment and deliver significant gains in the Asia Pacific region during the event. Coca-Cola said it had “created an innovative campaign to build on the legacy of the tournament and celebrate the changing story happening in women’s football.” Coca-Cola displayed and activated at the soccer stadiums of co-hosts Australia and New Zealand. “Five powerful statements that show progress.” In a beverage market where standing out is as difficult as it is, Coca-Cola has once again shown that it knows how to play the game and win.

And don’t forget how Coca-Cola stands up to market ups and downs. With our diverse products and strong global presence, we can easily navigate currency fluctuations and competition. And don’t forget dividend performance. It has enjoyed more than 60 consecutive years of dividend growth, and the stock currently yields about 3% and pays $1.84 per share per year. For those looking to add credibility to their investment mix, Coca-Cola continues to offer just the right flavor.

PepsiCo’s market-leading diversification and outstanding financial performance

PepsiCo, known for sodas like Pepsi and Mountain Dew, maintains a dominant position in the snack world with popular brands like Lay’s, Doritos and Quaker. This strategic convergence of snack and beverage brands secures a stable revenue stream and further enhances PepsiCo’s resilience in a competitive market.

PepsiCo’s net income rose a whopping 6.7% last quarter, surpassing $23 billion, and its EPS rose 16%. What does this tell investors? Simply put, PepsiCo has proven to be a master at navigating economic ups and downs while keeping its earnings game strong, making it a company of choice for those looking for a trustworthy investment.

PepsiCo always seems to be adapting to what consumers want. Consider its move to offer healthier snacks and enter the energy drink market through its 2020 acquisition of Rockstar. These strategic partnerships allow us to keep pace with changing tastes and lifestyles. By diversifying its lineup, PepsiCo is staying ahead of the curve.

PepsiCo is navigating the rough waters of global supply chain issues and fierce competition with a steady hand. We continue to stay ahead of the curve by focusing on being efficient and smart in our operations and marketing. Going forward, PepsiCo isn’t just promising more. It’s planning for growth and resilience, making Pepsi a name to bet on in the ever-changing beverage and snack market environment.

Boston Beer effectively creates innovation alongside its core market strategy.

Boston Beer Company, known for its iconic Samuel Adams beers, is breaking the boundaries of traditional breweries with its “Beyond Beer” category, offering game changers including Truly Hard Seltzer and Twisted Tea.

In the third quarter of 2023, Boston Beer reported increased net revenue, reaching $601 million, up slightly by 0.9%. However, diluted earnings per share jumped to $3.70, a solid 9% increase. Let’s not forget the impressive gross margin, which currently stands at a healthy 45.7%. So while revenue growth may not be the tea party, these numbers demonstrate the company’s ability to effectively manage costs and maintain revenue streams even when markets struggle.

The company’s strategic focus on brands such as Twisted Tea and Hard Mountain Dew was communicated. For example, Twisted Tea continues to grow in popularity, becoming a leading brand in the flavored malt beverage category. Hard Mountain Dew, a recent venture with PepsiCo, is also showing promising growth.

Boston Beer faces several challenges, including fluctuating shipments and competitive pressures in the craft beer sector. However, a proactive approach to developing strong margins and investing wisely in a variety of brands has helped alleviate these issues. The third quarter results did not include debt, which is a surprising achievement for a company with more than $310 million in cash reserves. Boston Beer’s strong balance sheet gives the company the resilience to overcome minor obstacles and continue to grow.

Drinks and the Art of Adaptation

Looking to 2024, Coca-Cola, PepsiCo, and Boston Beer shine as top investment competitors. With impressive track records, these beverage companies bring a blend of financial strength, innovative strategy, and adaptability to the table. So when thinking about where to invest your money, keep these things in mind: In a world where change is the only certainty, it is wise to trust those who have mastered the art of adaptation.