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| Share Name | Share Symbol | Market | Stock Type |
|---|---|---|---|
| Diageo Plc | DGE | London | Ordinary Share |
| Price Change | Price Change % | Share Price | Last Trade
|
|
|---|---|---|---|---|
| 48.50 | 2.06% | 2,398.50 | 16:35:27 |
| Open Price | Low Price | High Price | Close Price | Previous Close |
|---|---|---|---|---|
| 2,350.00 | 2,348.50 | 2,397.50 | 2,398.50 | 2,350.00 |
| Industry Sector |
|---|
| BEVERAGES |
| Top Posts |
|---|
Posted at 27/9/2024 07:51 by philanderer Diageo at risk of takeover, warns AJ BellDiageo (DGE) has sounded the alarm on the current backdrop and AJ Bell warns it could attract activist investors or a takeover bid if it remains in the doldrums. The group delivered a sombre update, warning of the challenges for the industry and for the maker of Johnnie Walker and Guinness. However, the fact that the Citywire Elite Companies AA-rated stock kept its guidance in check cheered investors and the shares increased 4.7% to £26.15 on Thursday. However, analyst Russ Mould said the shares jumped ‘because of the absence of further bad news, rather than evidence of a turnaround’ and the shares are still down 15% over the past year. He said the company was ‘pulling some levers internally to position itself for a recovery in demand’. ‘The problems the company faced in Latin America, where it had far more inventory than it needed, hinted at issues with controls and discipline in at least one area of the business,’ he said. ‘Having staked a position very much in premium spirits, which paid off during the pandemic when people were unable to go out…Diageo really needs to see a recovery in this part of the market.’ Mould warned that if the business ‘remains in the doldrums for much longer it could attract activist interest or potentially a takeover bid’. ‘There could conceivably be pressure to break up the group with Guinness being hived off from the spirits brands,’ he said. Citywide.com |
Posted at 26/9/2024 10:55 by anhar I'm just a dull old income investor so only really interested in the divis but unfortunately, although the payouts have grown well over the years, the switch to US$ accounting and the recent weakness of the dollar means that the forthcoming final of $62.98 will prob be about 47p. Despite their good historical growth this is actually lower than last year's 49.17p when they were still in sterling. We'll know on 03 Oct when they announce the conversion.I have many shares in the port which account in dollars and long term I'm not bothered by short term dollar weakness because over time it will imo continue to appreciate against the pound, as it has in the past. |
Posted at 08/9/2024 13:20 by anhar I'm purely a long term income investor and have held for many years. Divi growth has been decent though recent capital performance has been awful, but I don't invest with gains as my objective. All about income for me and I retain my DGE holding due to the good divi growth long term.I've said here before that I'm prepared to add to my holding but only on a 5% yield, implying a price of around 1,600p with an 80p-ish divi. I doubt it will get there as that's 33% below the current price, but it's rather closer than when I last considered this. A sizeable divi increase with the $ not weakening much worse than 1.31 would raise my buy price a bit but continue to require a reduced, but still large, fall to occur. |
Posted at 27/8/2024 18:00 by waldron Diageo Sold Long-Dated Euro Debt in Bumper Day for New BondsRonan Martin Tue, 27 Aug 2024, 6:45 pm1-min read (Bloomberg) -- Global alcohol maker Diageo Plc sold new long dated euro debt as part of a bumper corporate bond offering, with new issuance stepping up a gear in Europe’s primary market. The owner of the Smirnoff vodka, Johnnie Walker whiskey and Guinness brands raised €1.9 billion ($2.1 billion) from a three part offering with maturities of six and a half years, 11 years and 20 years, according to a person familiar with the matter who asked not to be identified. Less than €15 billion of 20-year and longer senior investment-grade debt had been raised by corporate issuers since the start of the year versus around €194 billion in shorter maturities, according to data compiled by Bloomberg as of Friday. Some investors have been keen to lock in higher yields while they can as central banks globally start to cut interest rates. In Europe, some ECB officials have been talking up another the prospect of another reduction recently, having already cut rates once this year. Still, at more than €1.4 billion, demand for the longer tranche was less than that seen for the shorter tranches. Diageo joined a cohort of corporates, financial institutions and public sector borrowers selling almost €22 billion of debt in what was the biggest day for sales since July, the data shows. Other companies in the market included BT Group Plc, Deutsche Lufthansa AG and National Grid North America Inc. Bloomberg Businessweek Bloomberg L.P. |
Posted at 06/8/2024 10:24 by waldron Down 30% in 5 years, are Diageo shares a no-brainer buy?Charlie Keough motely fool Tue, 6 August 2024 at 9:42 am CEST·3-min read It’s been a rough five years for Diageo (LSE: DGE) shareholders. During that time, its shares have lost 30.3% of their value. They’ve risen as high as £40.36 but they’re at one of their lowest points in five years right now, sitting at £23.57. That’s not inspiring stuff from the alcohol beverage giant. I like to buy stocks that are gaining momentum but still look cheap. When it comes to gaining momentum, Diageo must have missed the memo. But while its share price performance has been dire, I think there’s still a lot to like about the business. Could the FTSE 100 stock, now trading on 17.2 times earnings, be a no-brainer buy? A rough spell It hasn’t been an easy couple of years for the company. Weak consumer spending has impacted its share price. The business issued a profit warning earlier this year after sales in the Latin American and Caribbean region fell 21%. With the ongoing cost-of-living crisis, consumers have been searching around for cheaper alternatives or even cutting out alcohol altogether. Unfortunately for shareholders, it seems like this will continue to be the case in the coming months. Long-term performance But there are two reasons I reckon the stock could be a no-brainer buy. The first is due to the premium brands it owns. Yes, consumers have been tightening their belts. But with names such as Guinness, Captain Morgan, and Don Julio under its umbrella, I still back Diageo to perform over the long run. As interest rates are cut, spending will pick up again. What’s more, although it has been a source of concern recently, in the years and decades to come, it’s predicted we’ll see strong economic growth in regions such as Latin America and the Caribbean. That should further help boost spending. Rising yield Reason number two is that its falling share price has pushed up its dividend yield. Today, it sits at 3.4%. On paper, a yield of that size may not seem like anything to write home about. However, there’s a caveat. Yes, consumers have been tightening their belts. But with names such as Guinness, Captain Morgan, and Don Julio under its umbrella, I still back Diageo to perform over the long run. As interest rates are cut, spending will pick up again. What’s more, although it has been a source of concern recently, in the years and decades to come, it’s predicted we’ll see strong economic growth in regions such as Latin America and the Caribbean. That should further help boost spending. Rising yield Reason number two is that its falling share price has pushed up its dividend yield. Today, it sits at 3.4%. On paper, a yield of that size may not seem like anything to write home about. However, there’s a caveat. Diageo is a Dividend Aristocrat. It has been nearly four decades since the business hasn’t paid a dividend. At times during those 37 years, we’ve experienced plenty of turmoil in the stock market. So, its consistent payout is mighty impressive. When it comes to dividends, some investors may feel like chasing the highest payout is the smartest way to make gains. However, people who bought Vodafone for its meaty 11.1% would have found out this often isn’t sustainable. The telecommunications giant announced earlier this year its dividend will be slashed in half from next year. Dividends are never guaranteed. So, at least with a track record like Diageo’s, I’m confident the business will keep prioritising shareholder returns in the years to come, despite the challenges it may face. I’d buy Don’t get me wrong, Diageo will be a slow burner. In the months ahead I expect further volatility and its share price may continue to put up an uninspiring performance. But as an investor who focuses on the long term, that doesn’t bother me all too much. Despite tough trading conditions, I back Diageo to get back on its feet. If I had the cash, I’d snap up some shares today. |
Posted at 30/7/2024 09:07 by natasonline I'm buying more. One day this inflation story will disappear overnight and stocks like DGE will return to form. I'm happy to buy, hold and forget DGE with a 3% dividend.All fair value formulas suggest DGE has good upside. Great Entry level for long term investors. |
Posted at 30/7/2024 09:07 by cynicalsteve Looks like DGE is making the transition from growth stock to income stock. That will be painful, just ask Vodafone investors! Alcohol as a growth industry was always a dubious proposition. |
Posted at 30/7/2024 08:01 by careful DGE used to be the bluest of blue chips.a low risk steady share for boring play safe investors. It is not boring now, what a collapse. |
Posted at 20/7/2024 05:43 by la forge Time to sell this FTSE 100 underperformer, says Goldman SachsAnalysts at one investment bank have a ‘sell’ rating on FTSE 100 stock Diageo. But could a short-term weakness in the US scotch market be a long-term opportunity? Stephen Wright The Motely FOOL Published 15 July, 9:02 am BST Diageo (LSE:DGE), shares have fallen 25% over the last 12 months, while the FTSE 100 is up 11%. And analysts at Goldman Sachs have downgraded the stock to ‘sell’. Wholesaler surveys in the US indicate the market for spirits is currently weak. But over the long term, I think selling scotch in the States could be an unusually good business. The bear case Diageo generates around 37% of its revenues in the US. So a weak market for vodka and scotch – where it has leading products – is an issue. The situation looks more promising for Tequila sales. But this makes up a much smaller part of the FTSE 100 company’s top line. As a result, Goldman’s analysts are forecasting no sales growth in Diageo’s US business for the next couple of years. And the investment bank has reduced its price target for the stock to £24.50. Investors might have hoped for better resilience from a company with a leading brand portfolio. But I see the current weakness as a buying opportunity. US dominance Diageo has the largest share of the US spirits market. That might be a short-term challenge, but I see it as a big advantage for the long term. Unlike in other countries, retailers don’t deal directly with manufacturers in the US. Instead, the likes of Diageo distribute to wholesalers, who in turn sell to retailers. This means manufacturers don’t have to negotiate prices with retailers, leading to greater profitability for Diageo. So a dominant position in the States is a valuable thing. Diageo’s largest competitor is Pernod Ricard, which also has a strong brand portfolio. But the FTSE 100 firm’s stronger US presence has given it an edge in terms of margins. Competition Over the long term, a leading position in the US should be an important advantage. And I think Diageo looks well placed to maintain its dominance. The company’s position in scotch looks especially hard to disrupt. One reason is that only whiskies aged and bottled in Scotland can qualify as scotch. This means supply is naturally limited, reducing the threat of competition. The time needed to age an 18-year old whisky is another barrier to entry. Other categories are less restrictive. But Diageo’s size scale gives it the scope to acquire new entrants before they cut into its market share. A buying opportunity? Goldman’s analysts think the short-term outlook for Diageo is challenging. But the spirits industry has been through cyclical fluctuations before. The risk for shareholders is the possibility of this being more than the usual volatility. A prolonged downturn could be a significant issue for investors. I’m somewhat sceptical, though. Over the long term, the trend towards premium spirits has been a durable one – after each downturn, things have always moved higher. There’s no guarantee this will continue, but I think Diageo’s long-term strengths put the odds in the company’s favour. That’s why I’ve been buying the stock for my portfolio. |
Posted at 26/1/2024 13:23 by richie1218 Diageo in high spirits after LVMH, Remy Cointreau updates26 Jan 2024 Diageo PLC (LSE:DGE) on Friday led the FTSE 100 risers after investors took heart from results from LVMH and Remy Cointreau. LVMH’s Wines & Spirits business delivered organic sales growth in the fourth quarter after declining in the two previous quarters. Bank of America described the performance from the division as “the biggest positive surprise” in the quarter with 4% revenue growth after two quarters of >20% declines. The bank noted management stated the "worst of cognac demand behind us". Meanwhile, shares in Remy Cointreau surged 13% after it posted a slightly smaller-than-expecte Russ Mould at AJ Bell said investors had taken “comfort from LVMH’s results, as well as some green shoots in Remy Cointreau’s results, that the luxury sector isn’t completely broken.” He noted Diageo recently warned about a drop in Latin American drinking which led investors to speculate that demand for expensive spirits might be waning. But he pointed out LVMH’s latest update struck a confident tone, giving a lift to luxury-related stocks. “Also helping to drive the sector was Remy Cointreau’s latest figures which showed a quarter-on-quarter improvement in the Americas, a region that has been awash with promotions and retailers/wholesaler “It seems the sector could go through a phase where investors are rewarding companies that say things are not as bad as feared, rather than saying everything is going well.” Shares in Diageo, which owns Johnnie Walker are up 4.0% |
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