5 best coffee stocks to buy for Q3 2023
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In this guide, our experts choose the best coffee stocks on the market right now. Keep reading to learn about how they made their choice and find out which companies you should invest in today.
What are the top coffee stocks to buy?
Copy link to sectionThe coffee companies are ranked in the table below. Click on the links to find the most up to date price information, or scroll down for a more detailed look at each company in turn.
| # | Stock ticker | Company name | Trade now |
|---|---|---|---|
| 1 | SBUX | Starbucks | Trade SBUX 77% of retail CFD accounts lose money. |
| 2 | SJM | The J.M. Smucker Company | |
| 3 | KO | The Coca-Cola Company | |
| 4 | KDP | Keuring Dr Pepper | Trade KDP 77% of retail CFD accounts lose money. |
| 5 | NESN | Nestle S.A. |
1. Starbucks (NASDAQ: SBUX)
Copy link to sectionStarbucks is an American company that owns the world’s largest coffee house chain. Formed in Seattle in 1971, Starbucks has become synonymous with globalisation as its coffee shops have sprung up in cities across the world. Now, there are more than 30,000 of them spread out over 83 different countries.
That development has seen it become a more and more popular stock. Since 2009, the company has steadily increased in value, going from less than $5 per share to over $100 in little more than a decade. It’s also a reliable dividend stock that rewards shareholders with a cash payout every year.
There are no signs of the Starbucks machine slowing down. It has a huge customer base and, as with many coffee brands, inspires strong loyalty among those customers. The pandemic also proved that the company can weather difficult global economic environments, and the stock continued to grow throughout lockdowns. Starbucks deserves its place at the top of this list.
This article contains a deep analysis about “How to buy Starbucks stocks” nowadays.
77% of retail CFD accounts lose money.
2. The J.M. Smucker Company (NYSE: SJM)
Copy link to sectionJ.M. Smucker is a food and drink manufacturer. An American company that was formed in 1897, Smucker owns Dunkin’ Donuts as well as the Folgers brand of coffee.
Smucker did well out of the pandemic, as it saw a big increase in sales from people forced to stay and work at home. That inspired the share price to increase by almost 20% in the spring of 2020. Even after the worst of it died down, the company continued to grow, and was up another 20% the following year.
Even if those sales return back towards ‘normal’ levels in the aftermath of the virus, there are still lots of reasons to own Smucker stock. The most notable is its dividend, which has increased for 20 years in a row. Many of these coffee stocks are great for dividend investors and that’s certainly true of Smucker.
3. The Coca-Cola Company (NYSE: KO)
Copy link to sectionThe Coca-Cola Company is one of the most well-known drinks companies in the world. Its exposure to coffee comes in the form of Costa Coffee, which is owned by Coca-Cola and is the largest coffee chain in the UK , second only to Starbucks worldwide.
Obviously, investing in Coca-Cola means you are owning a company whose performance relies on more than just coffee. That hasn’t held it back in recent times, as the share price was surging before the pandemic and quickly recovered from the March 2020 crash.
The Coca-Cola brand is so popular and well-known that it makes for a very reliable investment. Another bonus is the fact the company is a member of the Dividend Aristocrats Club, a group of companies that have raised their dividend every year for more than a quarter of a century. While coffee is only part of its business, Coca-Cola is a superb investment nonetheless.
To learn more about Coca-Cola stocks and how to purchase them, you can find our exhaustive article here.
4. Kuering Dr Pepper (NASDAQ: KDP)
Copy link to sectionOne of Coca-Cola’s competitors in the soft drink business is also its rival in terms of coffee. Keuring Dr Pepper owns 125 different brands, including Keuring and the Green Mountain Coffee Roasters.
The company only merged with Dr Pepper in 2018 but it instantly formed the third largest beverage company in America when it did. Since then, the stock has done well: it’s up 40% and continued to grow despite the pandemic. Again, like Coca-Cola, the drop-off from a lack of hospitality sales was covered by people buying more drinks in supermarkets and placing more online orders.
Keuring Dr Pepper is another reliable dividend stock and, as with virtually all of the other companies on this list, it owns a diverse brand portfolio. Its acquisition of the caffeinated water manufacturer, Limitless, is a sign that the company is going to keep adding to that portfolio whenever the opportunity allows.
77% of retail CFD accounts lose money.
5. Nestle S.A. (SWX: NESN)
Copy link to sectionThe Swiss food and beverage conglomerate, Nestle, is another great route into owning a wide range of famous brands. Not only does it produce its own range of coffee through the Nestle and Nescafe brands, it owns hundreds of food and drinks brands in total.
The Nestle stock price has been on the up and up for decades. The rule is solid, if unspectacular, growth and that continued even through the disruption of the pandemic. The stock is up nearly 50% in the last five years, with the growth increasing at a faster rate than ever since it solidified its place as the largest food company in the world in 2014.
Nestle grows by acquiring other companies and it has used that technique to great effect over the years. For that reason, it’s unlikely to come under threat from any serious competition and it pays a steady dividend every year as well. Nestle is one of the most reliable companies you can put your money in and it should remain so for a long time.
If you are willing to learn more about how to buy Nestle stocks, you can find our guide here.
Where to buy the best coffee shares
Copy link to sectionUse the brokers below to buy coffee shares now. These are the best trading platforms around and you can go ahead and sign up by following the links in the table. Alternatively, read through our detailed reviews in order to get more information so that you can compare their service.
77% of retail CFD accounts lose money.
What is a coffee stock?
Copy link to sectionAny company that’s involved in any stage of the coffee making process. That extends from the businesses that grow the beans, through transportation and production, all the way to the chains that sell the drink to the public.
Are coffee shares a good investment?
Copy link to sectionThey are ideal for long term investors and anyone that is interested in dividend stocks. Food and beverage stocks tend to offer slow and steady growth that can withstand even the most difficult economic environments.
Coffee consumption is robust, particularly in the western world, and many of these companies own other established brands as well. That makes them a great cornerstone of any portfolio, that you can own alongside some more risky stocks that might be less proven or prioritise high growth.
Lots of coffee brands are now established all over the globe, while the beans themselves are grown in Africa and South America. That means things like geopolitics and the climate can have an effect on how these stocks perform, and you should follow the latest news so that you know whenever a major event that might affect their price takes place.
More of the best performing stocks
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