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Have you been drinking wine during the coronavirus lockdowns? Of course you have and so has the rest of America. Alcohol consumption has skyrocketed since the outbreak forced citizens out of their offices and into their homes indefinitely. U.S. alcohol sales increased 55% during the first week of extended lockdowns and wine sales were up 42% on a year-to-year basis. That’s a great reason for investors to look at wine stocks.
If you want to invest in companies that make alcoholic beverages like wine, you have no shortage of choices. Many of America’s favorite brands are produced by a handful of large companies that trade on U.S. exchanges.
Quick Look at the Best Wine Stocks:
| Symbol | Company | % Change | Price | Dividend Yield | Invest |
|---|---|---|---|---|---|
| DEO | Diageo |
+ 0%
|
$74.63 | 3.3192 / 0.04% | Buy stock |
| BF/A | Brown Forman Inc Class A Common Stock |
+ 0.15%
|
$26.90 | N/A | Buy stock |
| PRNDY | Pernod Ricard |
+ 0.41%
|
$14.81 | 1.0942 / 0.07% | Buy stock |
| WVVI | Willamette Valley |
+ 9.16%
|
$2.74 | N/A | Buy stock |
| STZ | Constellation Brands |
– 0.29%
|
$150.65 | 4.08 / 0.03% | Buy stock |
Contents
Alternatives to Wine Stocks
If you’re looking to invest in fine wine but lack the time and capital resources needed to buy, store and sell it yourself, Vint might be the solution. Founded in 2019, Vint is an investing platform that allows accredited U.S. investors to gain wine exposure in their portfolios. You can also invest in whisky and other spirits. The company handles all the logistics, including sourcing, actual purchase, storage, insurance, market research and sales. Investors receive proceeds on a pro-rata basis from partial or complete sales.
Vint creates securitized offerings, converting high-value assets like fine wines into investment opportunities that can be divided into smaller fractions. This practice allows investors to access world-class assets with as little as $100 (similar to buying fractional shares), aligning with their financial objectives and risk tolerance. Vint offers the most unique and efficient approach to investing in fine wine and rare spirits — a stable and non-correlated asset class. This approach blends traditional investing with innovation, opening up investment opportunities for investors of all sizes and making fine wine investment more accessible and inclusive. Read on for a comprehensive review of Vint, its offerings, pros and cons and how it differs from similar platforms.
- Wine enthusiasts looking to invest in fine wines and rare spirits without the hassle of managing the sourcing, collection and storage themselves
- Investors seeking to diversify their portfolios with alternative assets and gain exposure to historically stable and non-correlated asset classes
- Individuals with smaller investment capital, as Vint allows fractional ownership of world-class assets, making it accessible to a broader range of investors
- Those interested in innovative investment opportunities that combine tradition and modern finance in the wine and spirits market
- Accredited investors who want to include wine exposure in their investment strategies
- Low investment minimum
- No annual management fees
- Well-regulated by SEC and FINRA
- Streamlines portfolio diversification and performance optimization
- Support investment via Self-Directed IRA (SDIRA), trusts and other entities
- Reg-D investment options
- Inability to redeem or sell shares when needed — no secondary marketplace
- Involves a medium- to long-term commitment — 1 to 7 years
- Limit investment to a maximum of 20% per offering
Overview: Wine Stocks
Companies that produce wine, beer and liquor reside in the consumer staples sector. You’ll sometimes hear market watchers refer to this sector as consumer defensive since they sell products that have relatively flat sales. Demand for food and alcohol doesn’t change much on a daily or yearly basis, so these companies aren’t looking to spend big on research and development or new ventures.
Wine stocks are usually stable, dividend-paying companies and consumer staples tend to outperform during recessions.
Wine is just a small sliver of sales from beverage giants, but several stocks on our list make their mark purely from what comes out of the vineyards. If you want to invest in consumer staples stocks that produce alcoholic beverages like wine, a forced recession from nationwide quarantines is as good a time as any.
Best Online Brokers for Wine Stock
A few of the stocks on our list are thinly traded, so you’ll need to make sure you find a broker that has shares available of the companies you want to buy. We didn’t include any OTC stocks or shares on foreign exchanges, but just because a stock trades on the NYSE doesn’t mean shares are abundant at every broker.
Before opening a new brokerage account, do a little digging and make sure they have shares available of all the stocks you intend on purchasing.
Interactive Brokers is a comprehensive trading platform that gives you access to a massive range of securities at affordable prices. You can buy assets from all around the world from the comfort of your home or office with access to over 150 global markets. Options, futures, forex and fund trading are also available, and most traders won’t pay a commission on any purchase or sale.
IBKR is geared primarily toward experienced traders and investors but now with the availability of free trades with IBKR Lite, casual traders can also acclimate to IBKR’s offerings.
- Access to international markets
- Active traders
- Detailed mobile app that makes trading simple
- Wide range of available account types and tradeable assets
- IB SmartRouting provides significant price improvement vs. industry
- Fractional trading allows investing regardless of share price
- Industry’s lowest margin rates
- Earn more by lending your fuly-paid shares
- Beginner investors might prefer a broker that offers a bit more hand-holding and educational resources
80% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
Plus500 is an online CFD broker focusing on contracts for difference (CFDs). CFDs are similar to binary options in the U.S. where traders take all-or-nothing speculation on the prices of certain securities like indices, commodities or currencies. While not legal to trade in the U.S., CFDs are legal in many jurisdictions across the globe and Plus500 offers a wide array of tradable markets using these instruments.
Plus500 doesn’t charge commission and only profits off the spread, which is the difference between the buy and sell price of a specific security. But Plus500 is not a broker for beginners — the education materials are sparse and CFDs are risky derivatives capable of sapping out all of an investor’s capital. Only trade these instruments if you understand how they operate and the risks involved with buying them.
The Plus500 CFD platform is for CFDs. The Plus500 Futures platform offers futures for U.S. customers, and Plus500 Invest offers stock trading.
- Traders looking for a smooth mobile experience
- Great mobile app
- Low spreads and commissions
- Unlimited demo account
- Only derivatives are available
- Not open to U.S. residents
Public is the only investing platform that lets you trade stocks, ETFs, crypto, bonds, options and alternative assets—like fine art and collectibles—all in one place. Public also provides access to custom company metrics, live shows about the markets, and insights from a community of millions of investors, creators, and analysts.
Today, Public provides more ways to create a diversified portfolio than nearly any other online broker. Members can engage in sophisticated investing strategies and access a wealth of investing insights—from company-specific analysis to live audio shows and town hall-style Q&As. In addition, Public offers a premium membership tier with unique company KPIs, detailed performance metrics, and institutional-grade research.
- Stock and ETF investors
- Crypto investors
- Investors looking to diversify with alternative assets or bonds and options
- Commission-free stock and ETF trading
- Fractional share investing
- Advanced data, tools, and insights with Public Premium
- You can’t transfer crypto to another wallet
- No mutual funds or precious metals
- At this time, only offers individual brokerage accounts and not IRAs
Robinhood is a popular trading platform known for its commission-free trades and user-friendly mobile app. Ideal for novice investors, Robinhood makes it easy to buy and sell stocks, ETFs and cryptocurrencies. The platform offers a straightforward, no-frills experience, making it accessible for users new to investing. With features like fractional shares and a sleek interface, Robinhood lowers the barriers to entry for investing, allowing users to start with just a few dollars. It lacks the advanced tools and research options that more experienced investors might seek. Overall, Robinhood is a great choice for beginners seeking a simple way to invest.
- Beginners looking for simplicity
- Mobile-first investors
- Commission-free trades
- User-friendly mobile app
- Instant double
- Cash management
- Access to cryptocurrencies
- Limited research tools
- No mutual funds available
- Basic customer support options
TradeZero is an online broker and free stock trading platform that provides everything you need to successfully share and trade, including round-the-clock customer support. TradeZero provides four different trading state-of-the-art software programs with its services, a locator for sourcing shares for shorting, commission-free trades, and real-time streaming, to name a few of the features promoted on their website. The software is a unique and (potentially) affordable option for anyone interested in stock trading.
- Traders seeking high transparency and mobility in a stock trading program
- Those attracted to commission-free trades
- Those seeking a free version of a high-quality trading program
- 24/7 live customer support
- Uses ZeroWeb technology, a powerful level 2 online platform with direct market access
- Mobile app allows users to access stocks and trade in real-time while on the go
- Enforces Pattern Day Trading restrictions (accounts need to maintain a daily equity balance of at least $25k)
- Mobile app could offer more features
Features to Look for in Wine Stocks
- Brand diversification: A key component for success in the consumer staples sector is the availability and popularity of name brand items. For wine and alcohol companies, the name brand is crucial. For example, Americans don’t just want whiskey — they want Jack Daniels or Johnny Walker. Strong brands drive sales for companies where product demand is inelastic like consumer staples.
- Gross margins: For nongrowth-focused stocks like consumer staples, looking at overall revenue doesn’t paint a clear picture. Companies that sell staples should instead be judged by their gross margins, which can be calculated by subtracting the costs of producing goods from net sales revenue. Companies with high gross margins get more bang for their buck when it comes to capital because they keep a higher percentage of the gross profits.
- Returning cash to shareholders: Alcohol producers aren’t huge innovators and many don’t desire the massive growth found in the tech sector. Instead, these companies make a habit of returning cash to shareholders in the form of dividends or buybacks. The Invesco BuyBack Achievers ETF (NYSE: PKW) is one example. If you’re investing in wine stocks, be sure to look for companies with a history of raising dividends or repurchasing shares.
Top Off Your Portfolio with a Taste of Wine Stocks
With most of the world’s nations locked in quarantine, alcohol consumption has increased significantly. Whether that’s good for society can be debated another day, but beer, liquor and wine sales are up and that’s a boost for beverage producers operating in a usually dull sector. Investing for the long-term means finding quality companies, not just those getting a momentary boost from an untenable global situation.
Beverage producers face inelastic demand for their products. Despite the recent trend, most people consume alcohol at a constant rate. Revenue doesn’t fluctuate in any type of consequential way most quarters, so these firms must focus on margins to improve profits and return cash to shareholders.
The best companies in this sector will have a diverse selection of brands and a laser-like focus on improving margins. If you’re investing for the long term, look for companies with a history of raising dividends when adding wine stocks to your portfolio.
Frequently Asked Questions
What are wine stocks?
Wine stocks are shares in companies that are associated with the wine industry.
Are wine stocks a good investment?
Because wine is a consumable that people continue to drink, wine stock is considered a good investment.
Which wine stocks are the best?
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