Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

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 is written by Robert Ciura.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.