In this article, we will take a look at the 5 Best Dividend-Paying Beverage Stocks to Buy Now. For a deeper discussion and analysis, please refer to the 10 Best Dividend-Paying Beverage Stocks to Buy Now.
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. (NYSE:STZ), 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. (NYSE:STZ) 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. (NYSE:STZ) 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 (NYSE:PRMB) 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 (NYSE:PRMB) 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 (NASDAQ:SBUX) 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. (NASDAQ:PEP) 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. (NASDAQ:PEP) 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 (NYSE:KO) 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 (NYSE:KO) 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 (NYSE:KO) 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.
While we acknowledge the potential of KO to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than KO and that has 100x upside potential, check out our report about the cheapest AI stock.
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