When it comes to refreshments, there’s nothing better to cool the summer heat than an ice-cold, bubbling glass of soda. If you’re considering a beverage stock investment, soda stocks are a solid choice.
However, let’s be honest.
There’s an elephant in the room, and there’s no denying the existence of it. Let’s confront it head on.
It’s water—the main ingredient in soda.
You may have heard about the surge in bottled water sales.
You may have heard that soda sales have been declining for the past decade.
That’s true too.
Health-conscious Americans are reaching for more water these days and less for carbonated concoctions.
Once the go-to beverage of choice, soda sales have, in fact, hit their lowest point since 1986. Furthermore, diet sodas are taking more of a hit as Americans shy away from artificial sweeteners, despite the Food and Drug Administration’s claims that they are safe alternatives to calorie-laden, sugary drinks.
That’s the bad news.
The good news is that there’s no reason to dump your soda stock. In fact, there are more reasons than ever to keep what you have and, perhaps, buy more.
Soda stock pays.
As far as non-alcoholic beverages are concerned, soda sales are still cash king, earning $77.4 billion retail sales last year. In fact, repackaging soda into smaller containers—packages that cost the consumer more money per ounce—attributed to a 1.4% sales increase in 2014.
That’s why if you’re looking for a long-term investment that pays well in dividends, investing in soda company stock is still a solid investment strategy.
Here are three refreshing soda stocks you can buy this summer that will return dividends after the summer heat dissipates.
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