Investors love dividend stocks, especially high-yield varieties, because they offer a significant income stream and have substantial total return potential. Total return includes interest, capital gains, dividends, and distributions realized over time. In other words, the total return on an investment or a portfolio consists of income and stock appreciation. Let’s take a closer look at the concept of total return. Imagine you purchase a stock at $20 that offers a 3% dividend. If the stock price rises to $22 within a year, your total return is 13%. This is calculated by adding the 10% increase in stock price to the 3% dividend.
Beer stocks have been hit as consumption has dropped among Gen Z and some Millenials.
A falling stock price means rising dividends for patient growth and income investors.
Despite falling consumption in some demographics, there will always be a demand for alcohol, as history has shown us.
Some investors get rich while others struggle because they never learned there are two completely different strategies to building wealth. Don’t make the same mistake, learn about both here.
While researching our database of dividend stocks, we were surprised to find that two of the world’s largest beer and liquor companies were also paying dividends at rates exceeding 4%. Warren Buffett’s Berkshire Hathaway holds both stocks, and both offer some of the best entry points in years. We decided to screen the rest of our high-yield dividend stock database, looking for other companies that sell alcohol, and found three more that also pay outstanding dividends, with one as high as 7.65%.
High-yield dividend stocks offer investors a reliable source of passive income. Passive income is characterized by its ability to generate revenue without requiring the earner’s continuous active effort, making it a desirable financial strategy for those seeking to diversify their income streams or achieve financial independence.
Unknown to most investors, this South American company pays a substantial 7.27% dividend. Ambev S.A. (NYSE: ABEV) was previously Inbev Participacoes Societarias, a Brazil-based company operating in the brewing sector. The Company produces, distributes, and sells beer, carbonated soft drinks (CSDs), and other non-alcoholic and non-carbonated (NANC) beverages across the Americas.
Ambev’s activities are divided into three segments:
Latin America North, including the sale of beer, CSD, and NANC drinks in Brazil, as well as operations in the Dominican Republic, Saint Vincent, Antigua, Dominica, Cuba, Guatemala, El Salvador, Honduras, Nicaragua, Barbados, and Panama.
Latin America South distributes products in Argentina, Bolivia, Paraguay, Uruguay, and Chile, and Canada, represented by Labatt’s operations, which comprise sales in Canada and some exports to the U.S. market.
