It’s no secret that investors can find a big “win in sin.” The stocks of firms that operate in various ‘sin’ industries – such as tobacco and casinos – have been some of the market’s top performers over long stretches of time. The idea is that no matter what the economy is doing or who’s serving as president, people will always smoke and gamble.
That leads to some pretty steady revenues, cash flows and, ultimately, dividends for many of the sin sectors.
And you can’t get more stable than the global brewing giants.
Across the globe, demand for beer, wine and spirits continues to rise. Meanwhile, the demand is increasingly being supplied by a small handful of firms. That gives the biggest distillers and brewers major price control and huge economic moats. Despite all that, the sector isn’t known for its dividends.
With that in mind, should investors bet on the brewers or find another “win in sin?”
Find out why tobacco stocks can be good investment decisions.