NYSE:DEO

Diageo PLC (DEO)

80.24
-0.19 (0.24%)
as of Jun 8, 2026, 8:00:00 pm Market Open.
86 watching
0
Investor Insights
star iconJun 8, 2026, 12:00 am

This summary was created by AI, based on 6 opinions in the last 12 months.

Diageo PLC has faced significant challenges recently, including an 80% cut to their dividend, signaling a troubling shift in the company's trajectory. Analysts express concerns about declining consumption among younger demographics and increased competition from alternative beverages, such as cannabis. The company, known for its premium-brand focus, has seen sales decline, notably in Agave, and has faced distribution issues. Furthermore, there is skepticism about the efficacy of the new CEO's turnaround strategies. While some analysts believe there is potential for recovery, the consensus is more cautious given the current state of the business and external pressures.

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Consensus
Sell
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Valuation
Overvalued
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DON'T BUY
(Market Call Minute.) The only problem is that organic growth is only 2%. Spent about 14% in marketing. Good thing is they throw off $2 billion in free cash flow and increased their dividend by 6%. Fairly valued.
PAST TOP PICK
(A Top Pick July 22/09. Up 15%.) Good growth. Biggest producer of scotch globally, which is the big demand product in the developing world. In the developed world, it is recession resistant. Long-term outlook is very good.
WATCH
In a good sector. Chart shows it pretty well follow the market with a breakdown in May followed by a small uptrend in June. Would like to see a breakout above $66-$67.
BUY
Have 9 of the top 20 liquor brands globally. Raise their dividend every year. Great consistent company over a long period of time. Capital expenditure is very low and they throw off lots of free cash. A lot of potential upside, probably 20%-30% if not more.
TOP PICK
Headquartered in England so trades on the London exchange. Perfect one for the strong Cdn$ to buy weak foreign currency stocks. 1/3 of its business is Scotch so with the pound going down, costs are going down and sell most of their product outside of the UK. 3.5% yield.
WEAK BUY
Raise dividend every year. He likes the beverage industry. They are trading at a slight premium. Low single digit growth this year.
WAIT
Have had a few operating issues that are increasingly getting priced into the security. Quarter results are due Feb 11.
BUY
World’s biggest liquor company. Stock hurt somewhat because people traded down from premium liquor with higher margins. It’s a very shareholder-friendly company. 4.3% yield.
PARTIAL BUY
One of the premier global distributors of liquor brands. Fantastic marketers. Reasonably defensive. Could be a market pullback and might get it 5%-10% cheaper so consider buying a 1/2 position in buying the balance later.
TOP PICK
Worlds biggest liquor company. It is recession resistant. As economy gets its feet back, people will move toward premium brands. Nice yield.
PAST TOP PICK
(A Top Pick Oct 14/08. Up 2.82%.) Largest liquor company globally. Very disciplined approach to return on capital. Paying down debt and increasing dividends.
BUY ON WEAKNESS
Distributor of spirits and alcohol. Reasonably recession proof but have had some challenges from their higher end booze. Fantastic market innovators. Will need to cut costs over the next little while in order to offset some of their margin compressions. Not expensive but would try to get it at a lower price.
TOP PICK
Largest liquor company in the world. Inexpensive on a multiple basis. Pays about 3% yield and raises its dividend regularly. Has a lot of share repurchases.
TOP PICK
Suffered a little in the 1st quarter due to an inventory draw down among their purchasing base in the US but this will correct itself. Good suite of products and geographic distribution. Very good marketers. Good solid dividend yield.
BUY
Very good company. Great geographic and brand diversification. Have always created great value for their shareholders over time. Almost 4.5% yield.
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