Diageo Investors - DGE

Diageo Investors - DGE

Stock Name Stock Symbol Market Stock Type
Diageo Plc DGE London Ordinary Share
  Price Change Price Change % Stock Price Last Trade
0.00 0.0% 3,422.00 00:00:00
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Posted at 27/1/2023 01:03 by philanderer

Edison’s Neil Shah commented: ‘The glass remains more than half full for Diageo after a strong set of results in the face of industry inflation.’

Shah added that ‘shareholders will raise a glass at the company’s pledge to return up to an addition £0.5 billion of capital to shareholders in fiscal year 2023.’

Charlie Huggins, head of equities at Wealth Club, stressed that Diageo looks better placed than most to weather the storm.

‘It is much easier to raise prices on a bottle of Johnnie Walker than on a bottle of shampoo or deodorant. So Diageo ought to have more pricing power than most consumer goods peers. This is a key reason for its resilient margins.

‘If the economy hits the rocks, Diageo may see some downtrading to less expensive brands. But it’s unlikely consumers will cut back significantly on alcohol. And long-term premiumisation trends are unlikely to abate.

‘Overall, Diageo is demonstrating why it is considered a high-quality long-term compounder. While short-term blips can’t be ruled out, investors who abide by the famous Guinness slogan - “Good things come to those who wait” - could be rewarded.’


Posted at 27/1/2023 00:40 by philanderer
Diageo shares fall as US sales growth slows

Investor reaction comes despite otherwise robust half-year results at drinks group

“Questions around the health of the US consumer continue,” said Simon Hales, an analyst at Citi.


Posted at 07/4/2022 15:14 by anhar
...and dividends supporting shareholder returns...

That's an odd comment considering the painfully low yield for DGE at present as I show above. Far from supporting returns, that yield is likely to put off investors for whom yield is a serious consideration.

Not that anyone gives a toss about worthless public broker advice, or at least they shouldn't, but anyway, since it was posted here.

Posted at 06/4/2022 09:48 by anhar
For income investors like me, DGE yield right now at 4,012p with a historical div of 73.95p is 1.8%, which is far below the market. The forecast yield is slightly higher but remains very low. For this reason it's a tempting sell because the cash could be reinvested in a much higher yielder to boost my port income.

Against that, it is unique in the FTSE100 with no other booze manufacturer there. As I maintain wide diversification, selling would lose my representation in this sector which I'm reluctant to do.

So I've decided to hang on for the time being.

Posted at 27/6/2021 23:08 by philanderer
Money Matters: Use your pandemic savings to buy fizz and chip stocks

I am frequently asked about what investors are buying to take advantage of the aggressive rollout of vaccinations and reopening of economies.

Given the reports about the increase in savings during the pandemic — household deposits grew by about €18 billion and counting — there has been much speculation about how it will be spent.

Hospitality is among the expected recipients. Drinks giant Diageo will benefit from increased consumer demand in both on- and off-trade channels, with broad-based growth across most categories, strong positioning in the fast-growing Chinese market, and a continued rise in the opportunity for low-alcohol and alcohol-free products.


Posted at 23/1/2021 00:43 by philanderer
Market report

Investors were keeping a watchful eye on Diageo ahead of its update next week. The Smirnoff and Guinness owner is expected to reveal a 4.6 per cent sales slump, according to analysts.

Shares barely moved, just edging lower by 0.02 per cent, or 0.5p, to 2908.5p.


Posted at 22/9/2020 13:34 by muscleriot
2017 Diagio gives Actor George Clooneys $700m cash for tequila brand 'Casaamigos' and $300m contingent on sales. ($1 billion dollars)

2020 Diagio gives Actor Ryan Reynolds $335m cash (1/3rd Billion) for 'Aviator Gin' and $275m contingent on sales.

2021 Will Diagio turn down my own homebrew Gin brand forumla 'Investors Ruin' with Hogarth inspired label depicting bedraggled investors, for £50 and a conker???

Posted at 09/4/2020 09:58 by grupo guitarlumber

Guinness and Smirnoff maker Diageo WILL pay a dividend to its shareholders despite the shutdown of pubs and restaurants hammering its business

UK investors in the drinks group will get their interim dividend payout today
Drinks group confirmed lockdown is having huge impact on its business
Firm has used stacks of its unused booze to help make 8m bottles of sanitiser

By Jane Denton For Thisismoney

Published: 10:41 BST, 9 April 2020 | Updated: 10:43 BST, 9 April 2020

Posted at 18/9/2019 17:30 by wetdream
Can someone explain how DGE can justify a PEG Factor of 3.38?


PE Growth (PEG) Factor

The PEG Factor, is the price-earnings (PE) ratio divided by the earnings per share (EPS) growth rate. The PEG factor measures the relative cost of earnings growth at the previous day's closing share price. The formula is the following:

= PE ratio / EPS Growth Rate

The PEG ratio is a tool that can help investors find undervalued stocks. When used in conjuction with other ratios, and the sector, it provides investors a perspective of how the market views a firm's growth potential in relation to EPS growth.


- A PEG factor equal to one, means that the market is pricing the stock to fully reflect its EPS growth potential.

- A PEG factor greater than one, indicates that either the stock is overvalued, or that the market expects its future EPS growth to be greater than the current consensus.

- A PEG factor less than one, indicates that either the stock is undervalued, or that the market does not expect the company to achieve its forcasted EPS growth.

Posted at 13/8/2019 08:19 by florenceorbis
Forget gold! When the world falls apart, I’d pick this FTSE 100 stock

Vishesh Raisinghani | Tuesday, 13th August, 2019 | More on: DGE
Shelves holding drinks bottles
Image source: Getty Images.

From Sydney to New York, it seems dark clouds are gathering over the global economy. Economic growth has already stalled in Britain, based on the latest official gross domestic product numbers, and with Brexit looming on the horizon, things could get a lot worse.

In times like these, savvy investors retreat to so-called ‘safe havens’. Traditionally, safe havens included government bonds from developed countries and premium real estate in megacities, all of which now seem overvalued to me. Some investors prefer gold. I, however, prefer an income-generating asset that has stood the test of time and prospered despite downturns — Diageo (LSE:DGE).

The alcoholic beverage giant is arguably one of the most stable and robust stocks on the FTSE 100 index. Its track record of wealth creation dates back to the early 1990s and investors who bought the stock in, say, 1997 have seen their capital multiply seven-fold to-date.

The stock has also been able to withstand the pressures of economic downturns. During the global financial crisis of 2008-09, when the broader index was down 40% from its peak, Diageo only lost 30% of its value. Over the past five years, which include the Brexit vote and its aftermath, the FTSE 100 has only gained 8.1%, while Diageo is up 96.6%.

If you include share buybacks and dividends, the total shareholder return over that period would be even more impressive.
Better than gold?

It’s difficult to deny gold’s merits as a safe-haven asset. The spot price of the commodity has quintupled since the year 2000. That implies a compound annual growth rate of 8.9%, while Britain’s average inflation rate has been 3.1% over that period.

However, even if gold can replicate this performance in the future, Diageo’s 2% dividend yield, £4.5bn share buyback programme, and 30.5% return on equity outshine the yellow metal. Coupled with its historic resilience to economic upheavals, I believe Diageo is safer than gold.
Looking ahead

Moving forward, I’m optimistic about Diageo’s prospects because of the strength of the company’s underlying brands, the shape of its balance sheet, and the diversification of its income sources.

As I mentioned in a previous article, Diageo has significant exposure to both North America and emerging markets. This means the ongoing Brexit turmoil will be offset by a stronger US dollar, while slowing growth in developed markets will be offset by growing consumption in India and China.
Foolish takeaway

Diageo’s scale and product mix make it somewhat impervious to economic cycles. As mentioned, the stock retained much of its value during the great financial crisis a decade ago. Since then, shareholders have more than doubled their investment if dividends and share buybacks are accounted for.

Looking ahead, its track record of wealth creation, the global scale of the company’s distribution network and the promised £4.5bn share buyback programme make this stock more appealing to me than gold.

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