In this article, we are going to discuss the 10 best dividend-paying beverage stocks to buy now.
Placed into the larger category of consumer staples or consumer packaged goods, beverage stocks are often perceived by investors as both timeless and recession-proof. Whether it’s water, tea, or alcohol, consumers have been paying to quench their thirst for centuries, and the industry’s reliability has led to the creation of some of the most valuable brands on the planet. Moreover, the sector tends to offer high profit margins and strong barriers to entry, leading to major brands and global distribution networks dominating the market.
BNN Bloomberg spoke with Nik Modi, co-head of global consumer and retail research at RBC Capital Markets, to discuss growth trends across the beverage sector. The continued rise of energy drinks and packaged water, and the macroeconomic pressures facing consumer brands, were also some points of discussion.
According to Nik, energy drinks continue to post double-digit growth. Consumers are no longer reaching for them occasionally. They have worked them into daily routines, which fundamentally shifts the demand dynamic. Packaged water has also been steadily gaining ground in the beverage market over the past two decades, and Modi expects the momentum to continue.
Talking about the challenges, he said that rising fuel prices, inflation, and changes to US food assistance programs are creating headwinds for beverage companies. These factors directly affect consumer spending behavior and where people choose to cut back.
Given this, we will take a look at some of the best dividend-paying beverage stocks.
Our Methodology
To collect data for this article, we looked up various companies working in the beverages sector, picked out the ones that pay dividends, and ranked them by the number of hedge funds invested in them as per the Insider Monkey database, as of Q1 2026. We then limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment. The following are the Best Beverage Dividend Stocks to Buy Now.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).
10. Anheuser-Busch InBev SA/NV (NYSE:BUD)
Number of Hedge Fund Holders: 33
Dividend Yield as of May 26: 1.42%
Anheuser-Busch InBev SA/NV (NYSE:BUD) produces and sells beer in North America, the Middle Americas, South America, Europe, the Middle East, Africa, and the Asia Pacific. Its diverse portfolio of well over 500 beer brands includes names like Budweiser, Corona, and Stella Artois, etc.
Anheuser-Busch InBev SA/NV announced on May 21 that it would invest $5.8 million in a facility in Williamsburg, Virginia, to support the production of its Michelob Ultra beer. The news follows a similar announcement from the company on May 13, when it detailed a $5 million investment in its brewery in Columbus, Ohio.
This investment will also fuel the production of Michelob Ultra, which is currently the top-selling and fastest-growing beer in America, and Michelob ULTRA Zero, which is the country’s best-selling and fastest-growing non-alcoholic brew. Moreover, AB InBev revealed that it would also open a new ‘technical skills training center’ in Columbus to support the next generation of manufacturing professionals in Ohio. The brewing giant plans to open 15 such training centers across its facilities in the United States.
The moves come after Anheuser-Busch InBev SA/NV announced last month that it would invest $600 million in US manufacturing facilities over two years, in line with President Donald Trump’s ‘Made in America’ push.
9. Diageo plc (NYSE:DEO)
Number of Hedge Fund Holders: 35
Dividend Yield as of May 26: 3.91%
With over 200 brands sold in nearly 180 countries, Diageo plc (NYSE:DEO) is a global leader in the production and marketing of alcoholic beverages.
A Bloomberg report on May 15 revealed that Diageo plc (NYSE:DEO) is parting ways with several top executives as part of an extensive overhaul under the leadership of new CEO Dave Lewis. Employees were recently told at a meeting that Ed Pilkington, the North America chief marketing and innovation officer, Hina Nagarajan, Africa president, and Louise Prashad, Chief Human Resources Officer, are among those about to face the axe.
The high-profile departures come as CEO Dave Lewis, also known as “Drastic Dave” for his willingness to execute sweeping changes, moves to fix a business that was once considered among the best-run beverage companies in the world.
Diageo plc (NYSE:DEO) revealed declining sales and profits in its H1 report in February, driven primarily by the lackluster sales in the United States. The company even had to lower its FY 2026 guidance and cut its dividend in half, as it needed “more financial flexibility”.
ByteTree Asset Management stated the following regarding Diageo PLC (NYSE:DEO) in its Q1 2026 investor letter:
“Quality stocks have generally been stable as they are globally diversified, stable businesses, yet Diageo and Unilever have disappointed. Diageo PLCʼs woes are not so much down to reduced alcohol consumption, which has been exaggerated, but due to premiumisation. They are effectively a luxury goods company, and that sector has been dragged down as consumer spending shifts from the high end and, most importantly, as the marginal buyer tightens their belt.”
8. Brown-Forman Corporation (NYSE:BF-B)
Number of Hedge Fund Holders: 36
Dividend Yield as of May 26: 3.64%
Brown‑Forman Corporation (NYSE:BF-B) is a global leader in the spirits industry. With approximately 5,000 employees worldwide, the company proudly shares its passion for fine-quality spirits in more than 170 countries.
On May 20, Citi analyst Filippo Falorni trimmed the firm’s price target on Brown‑Forman Corporation from $31 to $26, while maintaining a ‘Neutral’ rating on the shares. The lowered target, which reflects a downside of 1% from the current share price, comes ahead of the company’s upcoming Q4 2026 report on June 4. The analyst firm expects investors to return focus on Brown Forman’s “challenging” fundamentals, now that the recent takeover news from Sazerac has “quieted down”.
The saga started when Brown‑Forman Corporation and France’s Pernod Ricard disclosed talks over a possible merger earlier this year. Those talks ended last month after the two companies failed to reach an agreement. Subsequently, the privately-owned Sazerac emerged as a suitor for the Jack Daniel’s maker and made a $15 billion takeover offer for the company. However, the offer was officially rejected by Brown-Forman on May 13.
According to analysts, a potential deal between the two Kentucky neighbors would have created a dominant player controlling around 30% of the American whiskey market.
7. Molson Coors Beverage Company (NYSE:TAP)
Number of Hedge Fund Holders: 41
Dividend Yield as of May 26: 4.63%
Molson Coors Beverage Company (NYSE:TAP) manufactures, markets, distributes, and sells beer and other malt beverage products. The company also offers a modern portfolio that expands beyond the beer aisle with energy drinks, non-alc beer, and canned cocktails, ready-to-drink coffee, and more.
Molson Coors Beverage Company announced on May 20 that it has commenced an underwritten public offering of $1.5 billion in senior notes. This includes $500 million of 4.900% senior notes due in 2031 and $1 billion of 5.500% senior notes due in 2036. The notes have been assigned a ‘BBB’ issue-level rating by S&P Global Ratings.
The offering is expected to close on or about May 27, with the net proceeds going towards general corporate purposes, including the repayment of the $2 billion 3.00% Senior Notes due 2026.
Molson Coors Beverage Company exceeded estimates in its Q1 2026 report last month, supported by price increases and demand for premium beer, especially in its Americas business. The company also reaffirmed its full-year 2026 guidance, expecting net sales plus or minus 1% versus last year and adjusted EPS to fall between 11% and 15%. The beverage-maker is also forecasting its US volumes to be down 6% to 9% in the second quarter, with cost pressures peaking mid‑year before easing in the second half.
6. Keurig Dr Pepper Inc. (NASDAQ:KDP)
Number of Hedge Fund Holders: 43
Dividend Yield as of May 26: 3.09%
Keurig Dr Pepper (KDP) is a leading beverage company in North America. The company has a portfolio of more than 150 owned, licensed, and partner brands and powerful distribution capabilities to provide a beverage for every need, anytime, anywhere.
On May 20, Keurig Dr Pepper (KDP) declared a quarterly dividend of $0.23 per share. The dividend will be paid on July 10 to shareholders of record on June 26, 2026. KDP currently boasts an impressive annual dividend yield of 3.09%, placing it in our list of the 13 NASDAQ Stocks with Highest Dividends.
Keurig Dr Pepper (KDP) exceeded expectations in its Q1 results last month. The company grew its revenue by over 9% YoY to almost $4 billion, driven by the double-digit gains in sales for its international and US refreshment beverage businesses. KDP expects net sales to increase by 4% to 6% YoY in full-year 2026, translating to a range of $25.9 billion and $26.4 billion. Moreover, it is projecting to grow its EPS by low double digits, including an incremental contribution from the JDE Peet acquisition, which is expected to close in the second quarter of the year.
5. Constellation Brands, Inc. (NYSE:STZ)
Number of Hedge Fund Holders: 56
Dividend Yield as of May 26: 2.80%
Constellation Brands, Inc. (NYSE:STZ) is a leading international producer and marketer of beer, wine, and spirits with operations in the U.S., Mexico, New Zealand, and Italy.
On May 18, Citi opened an “upside 90-day catalyst watch” on Constellation Brands, Inc., while maintaining a ‘Buy’ rating on the stock. The analyst also assigned STZ a price target of $185, indicating an upside of almost 24% from the current levels.
Citi expects Constellation’s upcoming Q1 2027 report to show an acceleration in beer trends on easier comparisons. The analyst firm also sees the alcohol company benefiting from the upcoming FIFA World Cup, given soccer’s “strong over-indexing” within America’s Hispanic community.
Constellation Brands, Inc. exceeded estimates in its Q4 2026 report last month. The company’s net sales and comparable earnings fell less than anticipated due to the stable demand for its Mexican lager brands such as Pacifico and Victoria. Moreover, the company’s sharper marketing strategy and lower prices even helped lift the demand for its key brews, including Modelo Especial and Corona Sunbrew, despite the muted US alcohol market.
However, Given the “evolving socioeconomic backdrop and limited near-term visibility”, Constellation Brands, Inc. updated its FY27 guidance and withdrew the previously issued FY28 outlook. The company now expects earnings in the range of $11.20 and $11.90 per share for fiscal 2027, compared to estimates of $12.36.
4. Primo Brands Corporation (NYSE:PRMB)
Number of Hedge Fund Holders: 57
Dividend Yield as of May 26: 2.00%
Primo Brands Corporation (NYSE:PRMB) operates as a branded beverage company in North America. It offers bottled water solutions and water filtration services; and premium spring and sparkling water, purified water, self-service refill drinking water, flavored and enhanced beverages, water dispensers, and filtration equipment.
On May 9, BofA bumped up its price target on Primo Brands Corporation from $25 to $27, while maintaining a ‘Buy’ rating on the shares. The target boost indicates an upside of over 12% from the current share price.
BofA revised its estimates following Primo Brands’ Q1 2026 report on May 7. The analyst firm applied a slightly higher valuation multiple to the stock, reflecting the stronger visibility on both topline and adjusted EBITDA for the rest of this year.
Primo Brands Corporation reported mixed results for its first quarter, with its adjusted EPS of $0.23 falling slightly below estimates by $0.01. However, the company grew its revenue by 1.2% YoY to $1.63 billion and exceeded expectations by $50 million. Based on its strong Q1 top-line growth, Primo Brands raised its FY 2026 comparable organic net sales growth guidance to 1% to 3%, up from flat to 1% previously.
3. Starbucks Corporation (NASDAQ:SBUX)
Number of Hedge Fund Holders: 65
Dividend Yield as of May 26: 2.46%
Starbucks Corporation (NASDAQ:SBUX) is a roaster, marketer, and retailer of specialty coffee globally. The company has more than 29,000 retail stores in 78 markets worldwide.
Starbucks Corporation is facing an intense backlash in South Korea after the company launched its “Tank Day” campaign on May 18. However, the day also marked the anniversary of the Gwangju Uprising crackdown, in which hundreds of pro-democracy activists were killed or injured by troops, tanks, and helicopters in 1980. This led to many people feeling that the “tank” motif mocked those who died for the country’s pro-democracy movement, sparking calls to boycott Starbucks Korea and even prompting a harsh rebuke from President Lee Jae Myung.
As a result, the marketing campaign was withdrawn, and Starbucks even issued a public apology. Moreover, the company removed all five employees involved in the campaign and even axed the head of Starbucks Korea. Although there has been no conclusive evidence of intentional wrongdoing, the company is now suffering a “very significant” drop in sales in the country, and the incident has exposed serious flaws in Starbucks Korea’s risk management framework.
2. PepsiCo, Inc. (NASDAQ:PEP)
Number of Hedge Fund Holders: 72
Dividend Yield as of May 26: 4.05%
PepsiCo, Inc. (NASDAQ:PEP) engages in the manufacture, marketing, distribution, and sale of various beverages and convenient foods worldwide.
On May 7, PepsiCo, Inc. increased its quarterly dividend by 4% to $1.48 per share. The dividend is payable on June 30 to shareholders as of the June 5 record. PepsiCo has paid consecutive quarterly cash dividends since 1965, and 2026 marked the company’s 54th consecutive annual payout increase, helping it retain its prestigious title of a dividend king. Moreover, with an impressive annual dividend yield of 4.05%, PEP was also recently included in our list of the 10 High Yield Stocks for a Lasting Retirement Income.
The move comes after PepsiCo, Inc. exceeded expectations in its Q1 2026 report last month, supported by the company’s price cuts for salty snacks in the US and resilient demand for diet sodas. PepsiCo also reaffirmed its full-year 2026 guidance, with the company expecting organic revenue to increase between 2% and 4% and core constant currency EPS to grow 4% to 6% compared to last year.
1. The Coca-Cola Company (NYSE:KO)
Number of Hedge Fund Holders: 76
Dividend Yield as of May 26: 2.63%
The Coca-Cola Company (NYSE:KO) is one of the most globally recognized brands in the world. The company manufactures and sells various nonalcoholic beverages in the United States and internationally.
On May 21, Barclays raised its price target on The Coca-Cola Company from $85 to $89, while keeping an ‘Overweight’ rating on the shares. The revised target reflects an upside of over 9% from the current price level.
Similarly, earlier on May 18, Citi analyst Filippo Falorni also slightly boosted the firm’s price target on The Coca-Cola Company from $90 to $91, while maintaining a ‘Buy’ rating on the shares. The analyst firm expects Coke to benefit from the upcoming FIFA World Cup this summer, since Coca-Cola is an official partner in the tournament and is executing its largest-ever marketing campaign for the games.
The Coca-Cola Company topped expectations across nearly every key metric in its Q1 2026 report last month, despite a complex external environment. The company now expects its annual comparable EPS to grow 8% to 9% YoY in full-year 2026, an increase from its prior estimate of 7% to 8% due to the lower effective tax rate.
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