Anheuser Busch Inbev SA (ADR) (BUD), Molson Coors Brewing Company (TAP), Boston Beer Co Inc (SAM): Keep Cool This Summer With These Beer Stocks

Craft beers continue to grow

As previously mentioned, strength in craft beers is what’s fueling the increase in global beer shipments. Boston Beer Co Inc (NYSE:SAM), maker of Samuel Adams, has been a major beneficiary of this trend. Boston Beer Co Inc (NYSE:SAM) is now a $2 billion business by market value and is growing much faster than its larger competitors.

Full-year net revenue rose 13% in 2012, and adjusted diluted earnings per share grew 11% year-over-year. The company’s success continued into the first-quarter this year, with revenue increasing 20% on the strength of 18% growth in shipments.

Of course, there’s a cost to this higher level of growth, which is Boston Beer Co Inc (NYSE:SAM)’s sky-high valuation. The stock trades for 40 times trailing earnings, as compared to P/E multiples of 22 and 19 for Molson Coors Brewing Company (NYSE:TAP) and Anheuser Busch Inbev SA (ADR) (NYSE:BUD), respectively.

Moreover, both Molson Coors and AB-InBev offer their investors dividends, whereas Boston Beer Co Inc (NYSE:SAM) does not. At recent prices, Molson Coors yields 2.7%, while Anheuser Busch Inbev SA (ADR) (NYSE:BUD) pays a 2.4% annual dividend.

In the end, just as there are many beer varieties for adults to choose from, investors can choose different beer stocks according to their preferences. Die-hard growth investors will likely prefer Boston Beer Co Inc (NYSE:SAM) for its significantly higher growth potential, while value and income investors should pick Molson Coors Brewing Company (NYSE:TAP) or AB-InBev for their reasonable valuations and solid dividend yields. All told, these are three highly profitable beer companies that can help keep you cool, and your portfolio hot, during the summer months.

The article Keep Cool This Summer With These Beer Stocks originally appeared on Fool.com and is written by Robert Ciura.

Robert Ciura has no position in any stocks mentioned. The Motley Fool recommends Boston Beer and Molson Coors Brewing (NYSE:TAP) Company. The Motley Fool owns shares of Boston Beer. Robert is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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