Stock Quotes in this Article: JVA, SBUX, SJM

The following commentary comes from an independent investor or market observer as part of TheStreet’s guest contributor program, which is separate from the company’s news coverage. The opinions expressed are those of the author and do not represent the views of TheStreet or its management.

SAN FRANCISCO (Stockerblog) -- Take a look at the following chart showing the price of coffee since January 2008.

The price of coffee is up 11.7% year to date, up 23.8% over the last 12 months and up 80.6% since January 2001. Demand is increasing from China, and coffee crops were not as strong in various parts of the world, causing the increased prices. But what is amazing is that coffee drinkers are still drinking coffee.

----------------------------------------------------------

More From Stockpickr

  • 5 High-Yield Stocks Due for a Squeeze
  • 10 Bank Dividends With Room to Rise
  • 20 Top-Yielding Food & Beverage Stocks
  • ----------------------------------------------------------

    Investors looking to take advantage of the caffeine addiction have over a dozen coffee stocks to choose from, according to our free list at WallStreetNewsNetwork.com. Seven of the stocks pay dividends, with yields ranging from 1.4% to 3.3%.

    A perfect example is Coffee Holding (JVA), a roaster of wholesale coffee that markets wholesale green coffee, private-label coffee and branded coffee in the U.S. and Canada. The stock trades at 10.9 times forward earnings and has a decent yield of 1.8%. Earnings for the latest reported quarter were up 86.6% on a 20% increase in revenue. The next earnings announcement will be June 6.

    Starbucks (SBUX) is the largest coffeehouse company in the world, operating in 50 countries with over 17,000 stores worldwide. The stock trades at 20.3 times forward earnings and pays a yield of 1.4%. Earnings for the latest quarter were up 20.4% on a 9.9% increase in revenue.

    There are a few food companies that sell coffee as part of their product line, such as J.M. Smucker (SJM), which sells the Folgers brand of coffee. The stock has a forward price-to-earnings ratio of 15.1 and a generous yield of 2.3%.

    For a list of the rest of coffee stocks, including more than half a dozen that pay dividends, go to WallStreetNewsNetwork.com. The list can be downloaded, sorted and updated.

    At the time of writing, author had no positions in stocks mentioned.

    Fred Fuld III, the publisher of stock and bond investing blog Stockerblog and founder of WallStreetNewsNetwork, has been in the financial services industry for over 20 years, working as an investment advisor, options market maker at the Pacific Stock Exchange, vice president of a San Francisco money management firm, university faculty member and wholesaler for the New Alternatives Fund (the first environmentally conscious mutual fund). He is the author of the books Investing in Brazil Stocks and The Green Light on Green Stocks.