In this article, we are going to discuss the 10 best dividend-paying beverage stocks to buy.
The American consumer staples industry is currently dealing with an evolving landscape, with a key shift being the heightened influence of health considerations on consumer behavior. Health and wellness are now common themes of interest among the younger generation of consumers and the prevalence of weight-loss drugs has also led to a change in consumer’s eating habits, including both reducing appetite and altering the kind of foods and drinks they want.
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Many industry players have realized that they’ll need to evolve and keep up with their consumers in order to achieve success. A great example is how an increasing number of beverage companies are now working to deliver more with their products, with one prominent trend being better-for-you (BFY) drinks. These are beverages that go beyond the scope of mere hydration and provide a solid benefit, such as supporting energy, gut health, cognition, immunity etc. However, in order for it to sell, a drink also needs to taste good, which presents a challenge in itself since the modern consumer is also wary of high sugar levels and artificial sweeteners. As a result, many industry players are now experimenting with natural sweeteners like allulose, stevia, and monk fruit alongside advanced sweetness modulation technologies.
Another major beverage category that is rapidly evolving with shifting consumer trends is that of alcohol. The rising importance of health and wellness has led to an increasing number of younger people drinking less alcohol, with many giving it up altogether. As a result, nearly every major alcohol company has come up with no- and low-alcohol versions of their highly acclaimed brands, making sure they don’t miss out on their share of a market that is becoming more and more established every day. The strategy seems to be paying off, as according to Nielsen, non-alcoholic beer, wine, and spirits collectively surpassed $565 million in sales in 2023, up 35% from the year before. Sales of Guinness 0.0, the zero-alcohol version of the highly beloved Irish stout, surged by nearly 50% between February 2023 and February 2024, putting it among the Best Selling Non Alcoholic Beers in the US.
A recent looming threat for the American beverage industry has emerged in the form of tariffs. President Donald Trump has announced a 25% tariff on all steel and aluminum being imported into the US, eliminating previous country exceptions and exemptions. The blanket tariffs, set to go into effect next month, will have serious consequences for the beverage industry since nearly 75% of all new beverage launches in North America now appear in aluminum cans, according to supplier Crown. An increase in input costs will inevitably lead to a rise in prices for end consumers, causing serious problems for some beverage categories that are already struggling, such as craft beer. A short-term solution could be resorting to alternative packaging materials, such as glass or plastic, but that will undoubtedly come with its ecological concerns and ramifications. Or perhaps, this packaging problem could be a blessing in disguise and lead to some much-needed creative destruction and forever change the industry, since the drinks aisle has always been a hot spot in terms of innovation.
According to data from Janus Henderson’s Global Dividend Index, the global beverage industry paid a total of $9.6 billion in dividends in Q3 2024, up 31.5% YoY and 96% more from the same period in 2019. However, the Food & Beverage index, which represents companies across various sub-industries in the sector, has delivered modest returns over the last year. The index has risen by 4.62% over the last 12 months, against gains of almost 22.9% by the broader market.
With that said, here are the Best Beverage Stocks that Pay Dividends.
A hand pouring a cool can of a carbonated non-alcoholic beverage with a smiley face on it.
Methodology:
To collect data for this article, we looked up various companies working in the beverage sector, picked out the ones that pay dividends, and ranked them by their number of hedge fund investors according to the Insider Monkey database, as of Q3 2024. Following are the Best Beverage Dividend Stocks to Buy Now.
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10. Diageo plc (NYSE:DEO)
Number of Hedge Fund Holders: 26
A global leader in premium drinks, Diageo plc (NYSE:DEO) is a British multinational alcoholic beverage giant with over 200 brands and sales in nearly 180 countries. Scotch whisky is Diageo’s largest segment and it produces over 100 individual scotch brands, including the world’s best-selling Scotch whisky, Johnnie Walker. In fact, the company owns nearly half of the Scotch whiskey stock currently in the maturing stage, which represents a position that is impossible to replicate by competitors.
Diageo plc (NYSE:DEO) is going through tough times and the company’s share price has fallen by more than 25% over the last year. In the first half of FY 2025, sales of the London-based company declined by 0.6% to $10.9 billion. Operating profit also fell to $3.2 bn, down 4.9% YoY. However, the company held or grew a share in 65% of its total net sales in measured markets in the first six months of FY 2025. Diageo also delivered share gains in almost all of its largest markets, including the US, most of Europe, and Greater China.
Diageo plc (NYSE:DEO) remains financially strong and increased its free cash flow by $125 million to almost $1.7 billion in the first six months of FY 2025. The company’s balance sheet will be further strengthened by its decision to divest its 80.4% shareholding in Guinness Ghana to Castel Group for $81 million, as it continues to refine its operating model in Africa. Diageo maintained its half-year dividend at $0.405 per share, reflecting a cautious stance amid market uncertainties.
Oakmark Global Select Fund stated the following regarding Diageo plc (NYSE:DEO) in its Q4 2024 investor letter:
“Diageo plc (NYSE:DEO) is a global producer, distributor and marketer of premium drinks with more than 200 brands and sales in nearly 180 countries. The U.K.-based holding company’s portfolio includes leading brands, such as Johnnie Walker, Guinness, Don Julio, Crown Royal, Smirnoff, Baileys, Casamigos and Captain Morgan. As a market leader, Diageo’s scale provides meaningful competitive advantages in terms of distribution and marketing, which enables the company to invest more than its peers while still generating strong returns on capital. In addition, we like that the company’s portfolio is well diversified by geography and category, which helps mitigate against earnings volatility related to economic cyclicality and shifting consumer preferences. Industry destocking and what we believe is temporary weaker demand have weighed on the share price recently, which provided an attractive re-entry point to invest in this dominant beverage company at a below-average price.”
9. Anheuser-Busch InBev SA/NV (NYSE:BUD)
Number of Hedge Fund Holders: 26
With a staggering 26.9% share of the entire global beer production in 2023, Anheuser-Busch InBev SA/NV (NYSE:BUD) is the Largest Beer Company in the World. The company is responsible for producing some of America’s most iconic beer and beyond beer brands, including Michelob ULTRA, Cutwater Spirits, Stella Artois, Budweiser, Bud Light, and several craft beer brands.
Anheuser-Busch InBev SA/NV (NYSE:BUD) grew its total revenue by 2.1% YoY in Q3 2024, while revenue per hectoliter also surged by 4.6% YoY due to its ongoing premiumization efforts. The company also witnessed a volume increase in 50% of its markets internationally, but its overall volume still declined by 2.4% YoY due to a soft consumer environment in China and Argentina, highlighting the risks associated with aggressive geographical diversification. The brewing giant also remains committed to returning value to its shareholders and recently announced a $2 billion share buyback program, up from its $1 billion share buyback in 2023. Anheuser-Busch InBev SA/NV (NYSE:BUD) distributed a €0.82 per share annual dividend in June 2024 and is included among the Best Beverage Dividend Stocks to Buy Now.
Anheuser-Busch InBev SA/NV (NYSE:BUD) continues to dominate the rapidly expanding non-alcoholic beer category and gained a market share of NA beer in over 60% of its key markets in Q3 of 2024, with Corona Cero more than doubling both volumes and revenues. Corona Cero was the official beer sponsor of the Summer Olympics 2024, which helped activate the brand at scale across more than 40 markets around the globe.
8. Molson Coors Beverage Company (NYSE:TAP)
Number of Hedge Fund Holders: 34
Next on our list of the Best Beverage Dividend Stocks is Molson Coors Beverage Company (NYSE:TAP), a multinational beverage and brewing giant with a diverse portfolio that expands beyond the beer aisle with energy drinks, non-alcoholic beer, canned cocktails, ready-to-drink coffee, and more.
Molson Coors Beverage Company (NYSE:TAP) struggled in the US market in Q4 2024, primarily due to a challenging macroeconomic environment and the wind-down of the company’s two-decade-long contract agreement with Pabst Brewing Company. Net sales of Molson Coors dropped by almost 2% YoY during the quarter to $2.74 billion but were still above analysts’ estimates by over $31.6 million. The company’s EPS of $1.3 also beat forecasts of $1.13, causing its stock to surge by over 11% since February 10, 2024.
Molson Coors Beverage Company (NYSE:TAP) delivered strong cash generation in 2024, with an annual free cash flow of over $1.24 billion. The beverage giant also returned over $1 billion in cash to shareholders during the year in the form of share buybacks and dividends.
Though the company has witnessed a decrease in financial volumes, Molson Coors Beverage Company (NYSE:TAP)’s core brands remain healthy. According to Circana, in Q4 2024, Coors Light, Miller Lite, and Coors Banquet retained over 80% of their combined volume share gains of the industry versus a year ago, which is an improvement over the second and third quarters.
7. Constellation Brands, Inc. (NYSE:STZ)
Number of Hedge Fund Holders: 36
Constellation Brands, Inc. (NYSE:STZ) is a leading international producer and marketer of beer, wine, and spirits with operations in the US, Mexico, New Zealand, and Italy.
Constellation Brands, Inc. (NYSE:STZ) reported mixed earnings for its Q3 2025, with non-GAAP EPS of $3.25, falling short of estimates. However, the company’s beer business (which brings in the lion’s share of its revenue) achieved a net sales increase of 3% in Q3 of 2025, supported by higher shipment volumes. Its core brands continued their uptick during the quarter as Modelo Especial grew by 3%, while Pacifico also surged by 20% and remained the number four dollar share gainer across the total beer category. Constellation’s Wine and Spirits segment continues to struggle, reporting a 14% YoY decline in net sales. The company generated an operating cash flow of $2.6 billion for the first nine months of FY 2025, up 9% YoY, while its free cash flow also surged by 13% YoY to $1.6 billion. STZ announced a quarterly dividend of $1.01 per share in January, in line with the previous.
The stock price of Constellation Brands, Inc. (NYSE:STZ) dropped to a 4-year low of $160.79 recently, primarily due to its lower-than-expected performance in Q3 2025 and the ongoing threat of looming tariffs on Mexico. However, it must be noted that Warren Buffett’s Berkshire Hathaway has recently disclosed a new investment in the beverage company, reinforcing wider investor confidence. Berkshire owned $1.24 billion of Constellation Brands, Inc. (NYSE:STZ) stock at the end of 2024, after purchasing 5.62 million shares in the fourth quarter.
6. Keurig Dr Pepper Inc. (NASDAQ:KDP)
Number of Hedge Fund Holders: 38
Keurig Dr Pepper Inc. (NASDAQ:KDP) is a leading beverage company in North America with a portfolio of more than 125 owned, licensed, and partner brands, leading the way in a wide range of refreshing beverages. The company owns the #1 single-serve coffee system in the US (Keurig) and has grown Dr. Pepper to become the second-largest soft drink brand in America, having overtaken Pepsi by the end of 2023.
Keurig Dr Pepper Inc. (NASDAQ:KDP) delivered net sales of $3.89 billion in Q3 2024, up 2.26% YoY but missing analysts’ estimates by $31 million. The company’s core refreshment segment, which includes Dr. Pepper, Snapple, Canada Dry, and Sunkist, continued to perform well in Q3 2024, with revenue jumping 5.3% YoY to $2.4 billion. KPD also remains financially strong and reported more than $500 million in free cash flow during Q3, keeping it on track for a meaningful step-up in full year cash flow compared to 2023. The company declared a regular quarterly cash dividend of $0.23 per share this month.
Keurig Dr Pepper Inc. (NASDAQ:KDP) announced in October 2024 that it has reached an agreement to purchase a majority stake in energy drink maker GHOST for $990 million, with plans to purchase the rest in 2028. The brand will complement KDP’s existing energy portfolio and substantially enhance its presence in the category. However, the acquisition comes at a time when the energy drink category has slowed down in the US, largely due to weak traffic at convenience stores.
Oakmark Select Fund stated the following regarding Keurig Dr Pepper Inc. (NASDAQ:KDP) in its Q4 2024 investor letter:
“Keurig Dr Pepper Inc. (NASDAQ:KDP) is one of North America’s leading beverage companies, with dominant positions in single-serve coffee and flavored soft drinks. The soft drink portfolio has an impressive track record of volume growth and market share gains. We believe this performance can continue due to favorable demographic trends, brand strength, and distribution advantages. Recently, weakness in the Keurig coffee division caused the stock price to come under pressure. However, we believe these industry-wide challenges will prove transitory because coffee remains a popular beverage. Keurig’s coffee division is poised to capitalize on this demand with the largest installed base of single-serve brewers and ample runway to increase household penetration. At the current quote, the market ascribes minimal value to Keurig. We were happy to purchase shares in this above-average business at a discount to the market multiple, other beverage peers and private market transactions.”
5. The Kraft Heinz Company (NASDAQ:KHC)
Number of Hedge Fund Holders: 38
Ranked at number 5 on our list of the Best Beverage Stocks with Dividends is The Kraft Heinz Company (NASDAQ:KHC), a globally trusted producer of high quality, great tasting, and nutritious food and beverages. Formed in 2015 through the merger of Kraft Foods Group and H.J. Heinz Holding Corporation, KHC is the third-largest food and beverage company in North America and the fifth-largest food and beverage company in the world.
The Kraft Heinz Company (NASDAQ:KHC) reported mixed results in Q4 2024, as its weaker sales figures were offset by profitability initiatives. The company declared adjusted EPS of $0.84, up $0.06 from market consensus, thanks largely to unexpected tax benefits and a reduced number of outstanding shares. However, the food and beverage giant’s Q4 revenue was reported at $6.58 billion, down 5% YoY and slightly below the forecasted $6.66 billion, due to declining organic sales. KHC witnessed its net sales decline by 3.9% YoY in the US, its primary revenue driver, despite a modest increase in pricing that slightly cushioned volume declines. The Chicago-based company reported a free cash flow of $3.2 billion for 2024, up 6% YoY, and returned $2.7 billion to its stockholders through share buybacks and dividends, which provide the highest yield in the food industry. KHC declared a quarterly dividend of $0.4 per share this month, in line with the previous.
Shares of The Kraft Heinz Company (NASDAQ:KHC) recently fell to a 52-week low after its management set up disappointing guidance for FY 2025. Due to unfavorable foreign currency trends, a price-sensitive consumer population, and rising ingredient costs, the company expects to generate full-year earnings of approximately $2.68 per share, down 12% YoY and short of the consensus consensus estimates of $3.04.
Mairs & Power stated the following regarding The Kraft Heinz Company (NASDAQ:KHC) in its Q3 2024 investor letter:
“We added The Kraft Heinz Company (NASDAQ:KHC) to the Fund in the quarter. Kraft Heinz is a leading global food company which possesses a portfolio of iconic brands, including its eponymous ketchup brand. The company has been undergoing an operational transformation focused on driving efficiency gains in supply chain, manufacturing and distribution. These efficiency gains have fueled increased investments in technology, automation, innovation and marketing, which should ultimately drive more consistent organic revenue growth and high single digit earnings per share growth. We expect above-average long-term returns, buoyed by consistent free cash flow generation, opportunistic share repurchases and an attractive 4-5% dividend yield. A modest current valuation affords an ample margin of safety.”
4. Mondelez International, Inc. (NASDAQ:MDLZ)
Number of Hedge Fund Holders: 51
Mondelez International, Inc. (NASDAQ:MDLZ) is an American multinational confectionery, food, and beverage company that employs approximately 80,000 individuals around the world. The company markets its products in over 150 countries, offering a vast array of snacks, chocolates, biscuits, and beverages.
Mondelez International, Inc. (NASDAQ:MDLZ) further boosted its portfolio last year with the acquisition of a majority stake in Evirth, the leader in China’s fast-growing frozen-to-chilled baked snacks category. The move represented an important step forward in the company’s strategy to accelerate growth in the cakes and pastries category – a core focus alongside chocolate and biscuits.
Mondelez International, Inc. (NASDAQ:MDLZ) reported a revenue of $9.6 billion in Q4 2024, up 3.11% YoY but still below market consensus by over $51 million. The company’s overall revenue for 2024 surged by 4.3% YoY, delivering growth in both developed and emerging markets. Mondelez’s chocolate segment grew by 7.4% last year and its two flagship global brands, Cadbury Dairy Milk and Milka, also delivered outstanding growth.
Mondelez International, Inc. (NASDAQ:MDLZ) continued its track record of strong free cash flow in 2024, generating $3.5 billion, and delivering $4.7 billion to shareholders through buybacks and dividends. The company’s balance sheet was further boosted in October 2024 through the divestment of its stake in Dutch coffee maker JDE Peet for $2.4 billion, providing another important source of funding for reinvestment that can be used to buy back stock as well as further advancing the company’s brands, talent, and capabilities.
3. PepsiCo, Inc. (NASDAQ:PEP)
Number of Hedge Fund Holders: 58
PepsiCo, Inc. (NASDAQ:PEP) is a leading food and beverage company serving more than 200 countries and territories around the globe. One of the best-known names in the business, the company owns a diverse portfolio of iconic brands such as Pepsi, Mountain Dew, Gatorade, Lay’s, Doritos, and Quaker.
PepsiCo, Inc. (NASDAQ:PEP) reported mixed results in Q4 2024 with net sales falling 0.2% to $27.78 billion, missing estimates of $27.89 billion. Though its worldwide volume increased by 1% for convenient foods and beverages, the company continues to battle a weakening demand in the United States, its largest market. PepsiCo raised its annual dividend by 5% to $5.69 per share this month, maintaining its strong track record of increasing its payouts for 53 consecutive years and putting it among the 10 Best Dividend King Stocks to Invest in Now.
Shares of PepsiCo, Inc. (NASDAQ:PEP) have been hovering around a 3-year low as investors shift their focus toward higher-growth stocks, compounded by external risks such as deglobalization and concerns surrounding the adoption of GLP-1 drugs. However, this presents a rare opportunity to acquire PepsiCo at a significant discount since it represents an excellent long-term investment with favorable risk-reward dynamics. With its proven track record, stable growth, and attractive dividend yield, PepsiCo, Inc. (NASDAQ:PEP) is included in our list of the Best Beverage Dividend Stocks to Buy in 2025.
2. The Coca-Cola Company (NYSE:KO)
Number of Hedge Fund Holders: 69
The Coca‑Cola Company (NYSE:KO) is a total beverage company, offering more than 200 brands – from sodas to waters, from coffees to teas, from juices to kombuchas, and a growing list of flavored alcoholic beverages – in over 200 countries and territories around the world.
Despite a sluggish demand in the packaged foods industry, the net revenue of The Coca‑Cola Company (NYSE:KO) increased 6% in Q4 2024 to $11.5 billion, while organic revenues grew by 14%, driven by 9% growth in price/mix and a 5% increase in concentrate sales. The company witnessed market-share gains across its beverage portfolio in 2024, with Coca-Cola Zero Sugar being a standout and boasting a unit volume growth of 13% in Q4. KO’s innovative marketing strategies seem to be paying off and over the last three years, its trademark Coca-Cola brand’s retail sales have increased approximately $40 billion. According to Time Magazine, Coca-Cola, Minute Maid, and Fairlife were named the best brands in the world in their respective beverage categories in 2024. Shares of KO have surged by over 11% since the beginning of the year.
In The Coca‑Cola Company (NYSE:KO)’s recent earnings call, CEO James Quincey stated that if the price of aluminum increases as a result of the tariffs imposed by the Trump administration, the company may have to sell more drinks in plastic bottles to counterbalance higher costs. The beverage giant has already been named the world’s worst plastic polluter for six consecutive years, so shifting towards more plastic bottles could amplify concerns from environmental advocates and lead to further scrutiny.
1. Starbucks Corporation (NASDAQ:SBUX)
Number of Hedge Fund Holders: 76
Topping our list of the Best Beverage Stocks to Invest in is Starbucks Corporation (NASDAQ:SBUX), the premier roaster and retailer of specialty coffee in the world with more than 32,000 stores in 80 countries.
The stock price of Starbucks Corporation (NASDAQ:SBUX) recently surged to a 52-week high of over $113 per share as the company’s better-than-expected results in Q1 2025 point to a turnout taking root. The Seattle-based company reported a 4% decline in its overall same-store sales in the quarter, better than the previously estimated 5%, while its overall revenue came in at $9.4 billion, which was basically unchanged from a year ago. Starbucks also continues to expand its international footprint and opened 377 net new stores globally in Q1. The company has raised its dividend at a CAGR of around 20% for 14 consecutive years and declared a quarterly dividend of $0.61 per share last month.
Under the leadership of Brian Niccol, Starbucks Corporation (NASDAQ:SBUX) is looking to rejuvenate its brand with the ‘Back to Starbucks’ initiative, which aims to streamline operations and enhance in-store experiences. The strategy includes some bold steps including restructuring the company’s corporate support and non-store workforce and limiting certain in-store amenities to paying customers etc.
Invesco Growth and Income Fund stated the following regarding Starbucks Corporation (NASDAQ:SBUX) in its Q3 2024 investor letter:
“Starbucks Corporation (NASDAQ:SBUX): The coffee retailer has struggled with China’s economic softness, declining sales and weaker US store traffic that have hampered revenues and profit margins. However, we believe the company has several positive, long-term catalysts, including strong growth in store count, better labor relations, improving productivity from labor, technology and innovation, and easier future earnings comparisons. We believed a management change was imminent, and shortly after we purchased the stock, Starbucks named a new CEO, which was seemingly greeted enthusiastically by investors.”
Overall, Starbucks Corporation (NASDAQ:SBUX) ranks first on our list of the best dividend-paying beverage stocks to buy. While we acknowledge the potential for SBUX to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than SBUX but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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