DEO - Diageo: AI Won't Change How We Drink
2024-05-15 03:04:25 ET
Summary
- Diageo's dividend yield is currently above its historical average and +1 standard deviation level, indicating an extreme valuation compression.
- While the company faces near-term headwinds, such as a decline in EPS and challenges in Latin America, its long-term growth potential and consistent profitability support a positive outlook.
- It is as close to an equity bond as we can think of.
- No matter how the world changes, we won’t change the way we drink whisky or beer.
DEO stock: Dividends at multi-year peak
Diageo plc ( DEO ) got my attention during my screening of dividend stocks recently. In this screening, I searched for companies with dividend yields far outside their normal ranges. The following chart shows DEO's historical average dividend yield and the 1x standard deviations. As seen, DEO is currently yielding about 2.81% (shown by the solid red line). This is not only far above its historical average (represented by the grey dashed line) but also above the +1 standard deviation level (shown by the orange line with round symbols)....
Diageo: AI Won't Change How We Drink