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Diageo plc (ADR) (DEO), Brown-Forman Corporation (BF.B): Celebrate Cinco de Mayo With These Stocks

Meanwhile, Anheuser-Busch InBev NV (ADR) (NYSE:BUD) experienced similar volume troubles last year. Anheuser-Busch InBev NV (ADR) (NYSE:BUD) grew its global volumes by only one percent in 2012, mainly because North America still accounts for 31% of its total volumes. As a result, the company has expanded its geographical horizons. Last year the company acquired the remaining portion of Groupo Modelo, maker of Corona, that it did not already own for $20.1 billion.

Anheuser-Busch InBev NV (ADR) (NYSE:BUD) has now amassed a portfolio of approximately 200 beer brands, including Stella Artois, Becks, and Michelob, in addition to Budweiser and Corona. The newly-formed beer giant now operates in 24 countries and employs 190,000 people worldwide.

Valuations that aren’t for the faint of heart

While Diageo plc (ADR) (NYSE:DEO), Brown-Forman Corporation (NYSE:BF.B), Molson Coors Brewing Company (NYSE:TAP), and Anheuser-Busch InBev NV (ADR) (NYSE:BUD) are highly profitable stocks that provide suitable dividend income to investors, it’s worth noting that they likely won’t attract the strictest value investors.

Each of these four stocks trades for trailing price-to-earnings ratios that are either nearing or have surpassed 20 times. These stocks trade for more expensive multiples than the broader market:  the S&P 500 Index is currently valued for approximately 18 times trailing earnings.

That being said, each of these stocks represents a high-quality business associated with extremely high barriers to entry. Should the potential for emerging market growth materialize to a significant degree, even their current lofty valuations may prove to be bargains. Value investors looking for a more measurable margin of safety may want to wait for pullbacks, but should these stocks drop, say, 10% from their current levels, investors would be wise to pounce. In the meantime, enjoy their products this Cinco de Mayo.

The article Celebrate Cinco de Mayo With These Stocks originally appeared on Fool.com is written by Robert Ciura.

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