This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Invest Like a Drunk: 5 Booze Stocks to Buy in 2013

Stocks in this article: ABV DEO SAM TAP BEAM

BALTIMORE ( Stockpickr) -- We all know you shouldn't drink and operate heavy machinery -- but drink and trade in your portfolio? Investing like a drunk might actually make you some money.

Mr. Market deserves a toast in 2013. The venerable S&P 500 index has managed to climb close to 11% on the year as of this writing. But one pocket of stocks has managed to do one better: consumer staples. Food, beverage and tobacco stocks in the S&P have climbed more than 17.7% since the calendar flipped over to January, and that number hops a full point when dividends are counted in the equation.

>>5 Hated Earnings Stocks That Deserve Your Love

Put simply, this group of stocks is wildly outperforming the broad market's already impressive pace.

And alcohol stocks offer some of the most exciting growth of the group right now. In recent years there's been a renaissance of "craft" beverage consumption. Consumers are paying premiums for niche beverage offerings, a trend that's long existed in the wine world, but has only recently crossed over into beer and spirits. That crossover presents a big opportunity for beverage manufacturers, especially as the amount of alcohol consumer per capita in the U.S. (and elsewhere) continues to rise.

>>5 Toxic Stocks You Need to Sell

Growth isn't the only story here. Acoholic beverage makers fall under the loose category of "sin stocks," which are known for their defensive posture when times get tough. In other words, people drink when times are good and they drink when times are bad too. With the rally that the S&P has already put underneath it this year, it's important to have a defensive allocation to your holdings, particularly one that's paying out dividends in this near-zero rate environment.

Alcohol stocks fit that bill.

Even if you're only interested in the "market research," it's worth taking a closer look at alcoholic beverage stocks right now. That's why, today, we're taking a look at five names that are well-positioned to round out your booze portfolio in 2013.

>>5 Rocket Stocks to Buy as Stocks Bounce

1 of 6

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs