Three beverage stocks to tap for frothy markets

These ubiquitous companies have proved to be steady performers even at the time of wild market swings.

Vikram Barhat 12 September, 2018 | 5:00PM

The persistent heat and humidity this summer are breaking weather records across Canada. Pretty much the same story has been playing out in the overheated equities markets as they relentlessly edge higher.

While they have pulled back in the past week, the S&P 500 and Nasdaq indices were virtually hitting new record highs every day over the summer and still show total returns of 9% and 17% for the year to date, respectively, as of Sept. 10. Thankfully, investors may only need to peek inside their refrigerators to find relief from these extreme conditions. Makers of fizzy drinks, both alcoholic and aerated varieties, could quench investor thirst in more ways than one.

Select beverage stocks in the consumer staples sector have proved to be steady performers even at the time of wild market swings. Leading constituents of the sector are known to offer a solid bulwark against rocky markets. They are sound allocation bets that provide both downside protection during sharp corrections and reasonable upside opportunities when markets are on the upswing.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
Anheuser-Busch InBev SA/NV ADR53.76 USD5.39
Molson Coors Brewing Co B34.66 USD4.24
PepsiCo Inc134.46 USD1.32

About Author

Vikram Barhat

Vikram Barhat  Vikram Barhat is a freelance writer.

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