The Fourth of July is one of the most anticipated holidays in the United States, a perfect mid-summer break to celebrate American Independence by watching fireworks, traveling and barbequing.
In fact, the Fourth of July also serves as the unofficial opening of “travel and BBQ” season in the U.S., and it can pay for investors to buy into this trend before it fully takes root. Combined with the reopening of the American economy, travel and leisure companies seem likely to benefit greatly starting on the Fourth of July and throughout the summer of 2021. Here’s a look at some July Fourth-related companies that you can discuss with your financial advisor to see if they match up with your investment objectives and risk tolerance.
Anheuser-Busch InBev SA/NV (BUD)
- Stock price as of June 25: $75.45
The Anheuser-Busch company has had a long string of successes at marketing its products, from its signature Budweiser Clydesdales to its self-proclaimed title of the “King of Beers” for its signature product, Budweiser. This summer, the marketing juggernaut is slapping the label “America” on its Budweiser cans to further tie in its connection to the Fourth of July and the American spirit. The company’s products are likely to continue to be popular throughout the summer and beyond.
ExxonMobil Corporation (XOM)
- Stock price as of June 25: $64.66
ExxonMobil’s products may not be as tasty as an icy cold beverage or a burger from the grill, but if you’re looking to travel over the Fourth of July, they’re just as necessary. ExxonMobil took a hit in 2020 as travel and business demand cratered, but pent-up consumers are likely to spend plenty of time filling up on ExxonMobil’s products at the gas station throughout the summer of 2021. The enormous dividend yield of 5.39% alone is enough to entice many investors, but analysts see the stock ticking up to $69.54 over the next 12 months as well.
The Coca-Cola Company (KO)
- Stock price as of June 25: $54.32
The Coca-Cola Company is another global powerhouse brand based in America that enjoys an association with barbeques, summer celebrations and July Fourth parties. In addition to consistent and impressive long-term returns, the stock currently pays investors a fat dividend of 3.12%. As a blue-chip stock and one of famed investor Warren Buffet’s favorites, Coke isn’t likely to double overnight but should provide long-term value. Analysts have a consensus “strong buy” rating on the stock.
Take a Look: Stocks That Would Have Made You Rich Today
The Walt Disney Company (DIS)
- Stock price as of June 25: $178.35
Disney is another iconic American brand that should benefit from Fourth of July trends and beyond. Disney stands to benefit from increasing travel trends as pandemic sanctions continue to be lifted across the country. The firm’s filmed entertainment, theme park and cruise line divisions all suffered mightily during the pandemic, but they’re all open for business and poised to benefit as consumers get out of their houses. There’s likely to be plenty of Disney entertainment viewed on TV and streaming platforms over the Fourth of July holiday, and this will continue throughout the summer as the company releases anticipated blockbusters like “Black Widow” on July 9.
The Kraft Heinz Company (KHC)
- Stock price as of June 25: $40.69
Who doesn’t know the Oscar Mayer wiener song — and the famous product it’s about? Parent company Kraft Heinz stands to benefit as Americans across the country cook up countless Oscar Mayer hot dogs over the July holiday. Kraft Heinz is also the namesake behind Heinz ketchup and countless Kraft products that are extremely popular in American households. After a rough couple of years from 2017-19, the company’s stock is back on track, up over 17% year-to-date and paying a sizable 3.93% dividend yield.
Tyson Foods, Inc. (TSN)
- Stock price as of June 25: $74.50
Tyson Foods is another company set to ride the wave of Fourth of July celebrations with its Ball Park Franks. However, the company is also the parent of a wide variety of protein-focused brands that are popular at cookouts and parties, from Jimmy Dean and Hillshire Farm to Gallo Salame — and let’s not forget its iconic Sara Lee brand for dessert! Analysts have a “buy” rating and an $82.38 price target on the stock, which also sports an above-average 2.39% dividend.
Domino’s Pizza, Inc. (DPZ)
- Stock price as of June 25: $457.98
The stereotypical Fourth of July gathering is focused on burgers and hot dogs, but you can bet there will be plenty of pizza consumed that day as well. And when it comes to pizza delivery, many Americans first think of Domino’s. The stock has been a home run, returning over 250% over the past five years and about 20% year-to-date, and the Fourth of July might spark another gain in sales. The company also pays a modest dividend of 0.81%.
McDonald’s Corporation (MCD)
- Stock price as of June 25: $232.42
McDonald’s is another U.S.-based global brand that’s woven into the very fabric of America. While many Americans fire up their own grills over the Fourth of July holiday, burgers are a mainstay of American culture. As Americans hit the road over the summer holidays, McDonald’s is likely to benefit from roadside stopovers and hungry families on vacation. A perennial blue chip, McDonald’s posts consistent earnings growth and has returned a solid if unspectacular 92% to investors over the past five years, including over 8% thus far in 2021. The company has increased its dividend for 45 consecutive years, by an average of nearly 10% per year, and currently sits as a solid 2.21%.
The Boston Beer Company (SAM)
- Stock price as of June 25: $1,035.22
When it comes to Fourth of July celebrations, the Boston Beer Company is as American as apple pie. Makers of the Samuel Adams line of beers, the Boston Beer Company is one of the many beer companies that tend to benefit from seasonal trends that pick up around the Fourth of July. Although sporting a lofty share price, analysts think the stock is still undervalued, with a consensus “buy” rating and an average price target of $1,380.11.
Wyndham Hotels & Resorts, Inc. (WH)
- Stock price as of June 25: $72.97
Investors have pushed up shares of Wyndham Hotels & Resorts by about 22% year-to-date in anticipation of a booming travel season, and there might be plenty more room to run. Analysts have a consensus “strong buy” on the hotelier, with an average 12-month price target of $81, about 11% above current levels. This is on top of the company’s 0.87% dividend. As the coronavirus pandemic eases and the Fourth of July and the summer travel season approach, Wyndham’s brands, from Super 8 and Travelodge to Ramada, La Quinta and more, should be operating at near capacity.
More From GOBankingRates