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How to buy Diageo (DGE) stocks
Learn how to easily invest in Diageo stocks.
Diageo is a beverages-wineries & distilleries business based in the UK. Diageo stocks (DGE.LSE) are listed on the London Stock Exchange (LSE) and all prices are listed in pence sterling. Its last market close was 3344.5p – a decrease of 3.59% over the previous week. Diageo employs 28,000 staff and has a trailing 12-month revenue of around £16.9 billion.
How to buy Diageo stock
- Choose a stock trading platform. Use our comparison table or choose from our Top Picks below.
- Open an account. Provide your personal information and sign up.
- Fund your account. Deposit funds unto your account by linking your banking information or transfer funds from another trading account.
- Search for the stock name – DGE. Search for the stock by name or ticker symbol.
- Buy the stock. Place your order. It's that simple.
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What's in this guide?
- Can I buy shares in Diageo?
- Has coronavirus impacted Diageo shares?
- Diageo shares summary
- Compare share dealing platforms
- Is Diageo stock a buy or sell?
- Diageo performance over time
- Is Diageo suitable for ethical investing?
- Are Diageo shares over-valued?
- Diageo's financials
- How volatile are Diageo shares?
- Does Diageo pay a dividend?
- Have Diageo shares ever split?
- Other common questions
Diageo stock price (London Stock Exchange (LSE):DGE)Use our graph to track the performance of DGE stocks over time.
Diageo shares at a glance
|Latest market close||3,372.50p|
|52-week range||3,326.50p - 3,902.52p|
|50-day moving average||3,604.01p|
|200-day moving average||3,653.85p|
|Wall St. target price||3,942.73p|
|Dividend yield||0.776p (2.32%)|
|Earnings per share (TTM)||1.56p|
Buy Diageo stocks from these online trading platformsCompare special offers, low fees and a wide range of investment options among top trading platforms.
Note: The dollar amounts in the table below are in Canadian dollars.
Is it a good time to buy Diageo stock?
The technical analysis gauge below displays real-time ratings for the timeframes you select. This is not a recommendation, however. It represents a technical analysis based on the most popular technical indicators: Moving Averages, Oscillators and Pivots. Finder might not concur and takes no responsibility.
Diageo price performance over time
Historical closes compared with the close of 3372.5p from 2023-06-02
|1 week (2023-05-26)||-3.59%|
|1 month (2023-05-04)||-8.47%|
|3 months (2023-03-03)||-5.70%|
|6 months (2022-11-30)||N/A|
|1 year (2022-05-31)||N/A|
|2 years (2021-06-04)||-0.69%|
|3 years (2020-06-04)||17.02%|
|5 years (2018-06-04)||21.75%|
Is Diageo stock undervalued or overvalued?
Valuing Diageo stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of Diageo's overall performance. However, analysts commonly use some key metrics to help gauge the value of a stock.
Diageo's P/E ratio
Diageo's current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 21x. In other words, Diageo shares trade at around 21x recent earnings.
That's relatively high compared to, say, the trailing 12-month P/E ratio for the FTSE 250 at the end of September 2019 (19.71). The high P/E ratio could mean that investors are optimistic about the outlook for the shares or simply that they're over-valued.
Diageo's PEG ratio
Diageo's "price/earnings-to-growth ratio" can be calculated by dividing its P/E ratio by its growth – to give 2.2014. A low ratio can be interpreted as meaning the shares offer better value, while a higher ratio can be interpreted as meaning the shares offer worse value.
The PEG ratio provides a broader view than just the P/E ratio, as it gives more insight into Diageo's future profitability. By accounting for growth, it could also help you if you're comparing the share prices of multiple high-growth companies.
Diageo's EBITDA (earnings before interest, taxes, depreciation and amortisation) is £5.7 billion.
The EBITDA is a measure of a Diageo's overall financial performance and is widely used to measure a its profitability.
|Revenue TTM||£16.9 billion|
|Operating margin TTM||31.35%|
|Gross profit TTM||£9.5 billion|
|Return on assets TTM||9.22%|
|Return on equity TTM||38.1%|
|Market capitalisation||£75.4 billion|
TTM: trailing 12 months
Diageo's environmental, social and governance track record
Environmental, social and governance (known as ESG) criteria are a set of three factors used to measure the sustainability and social impact of companies like Diageo.
When it comes to ESG scores, lower is better, and lower scores are generally associated with lower risk for would-be investors.
Diageo's total ESG risk score
Total ESG risk: 14.15
Socially conscious investors use ESG scores to screen how an investment aligns with their worldview, and Diageo's overall score of 14.15 (as at 01/01/2019) is excellent – landing it in it in the 8th percentile of companies rated in the same sector.
ESG scores are increasingly used to estimate the level of risk a company like Diageo is exposed to within the areas of "environmental" (carbon footprint, resource use etc.), "social" (health and safety, human rights etc.), and "governance" (anti-corruption, tax transparency etc.).
Diageo's environmental score
Environmental score: 0.95/100
Diageo's social score
Social score: 2.78/100
Diageo's governance score
Governance score: 5.42/100
Diageo's controversy score
Controversy score: 3/5
ESG scores also evaluate any incidences of controversy that a company has been involved in. Diageo scored a 3 out of 5 for controversy – a middle-of-the-table result reflecting that Diageo hasn't always managed to keep its nose clean.
Diageo share dividends
Dividend payout ratio: 48.84% of net profits
Recently Diageo has paid out, on average, around 48.84% of net profits as dividends. That has enabled analysts to estimate a "forward annual dividend yield" of 2.32% of the current stock value. This means that over a year, based on recent payouts (which are sadly no guarantee of future payouts), Diageo shareholders could enjoy a 2.32% return on their shares, in the form of dividend payments. In Diageo's case, that would currently equate to about 0.776p per share.
While Diageo's payout ratio might seem fairly standard, it's worth remembering that Diageo may be investing much of the rest of its net profits in future growth.
The latest dividend was paid out to all shareholders who bought their shares by 2 March 2023 (the "ex-dividend date").
Have Diageo's shares ever split?
Diageo's shares were split on a 864:1000 basis on 2 February 1998. So if you had owned 1000 shares the day before before the split, the next day you'd have owned 864 shares. This wouldn't directly have changed the overall worth of your Diageo shares – just the quantity. However, indirectly, the new 15.7% higher share price could have impacted the market appetite for Diageo shares which in turn could have impacted Diageo's share price.
Diageo share price volatility
Over the last 12 months, Diageo's shares have ranged in value from as little as 3326.5p up to 3902.5226p. A popular way to gauge a stock's volatility is its "beta".
Beta is a measure of a share's volatility in relation to the market. The market (LSE average) beta is 1, while Diageo's is 0.3551. This would suggest that Diageo's shares are less volatile than average (for this exchange).
Diageo plc, together with its subsidiaries, produces, markets, and sells alcoholic beverages. The company offers scotch, whisky, gin, vodka, rum, ready to drink products, raki, liqueur, wine, tequila, Canadian whisky, American whiskey, cachaca, and brandy, as well as beer, including cider and non-alcoholic products. It provides its products primarily under the Johnnie Walker, Guinness, Tanqueray, Baileys, Smirnoff, Captain Morgan, Crown Royal, Don Julio, Ciroc, Buchanan's, Casamigos, J&B, and Ketel One brands. The company operates in North America, Europe, Turkey, Africa, Latin America, the Caribbean, the Asia Pacific, and internationally. The company was incorporated in 1886 and is headquartered in London, the United Kingdom. .
Diageo in the news
FTSE 100 and European stocks higher on US debt deal
NEW SMIRNOFF BLUE RASPBERRY LEMONADE BRINGS BIG (BLUE) FLAVOR TO HOT 97'S SUMMER JAM AND THE BET AWARDS 2023
Sean ‘Diddy’ Combs sues spirits company for billions, claiming it was racist to his vodka and tequila business
Frequently asked questions
Disclaimer: This information should not be interpreted as an endorsement of futures, stocks, ETFs, options or any specific provider, service or offering. It should not be relied upon as investment advice or construed as providing recommendations of any kind. Futures, stocks, ETFs and options trading involves substantial risk of loss and therefore are not appropriate for all investors. Trading forex on leverage comes with a higher risk of losing money rapidly. Past performance is not an indication of future results. Consider your own circumstances, and obtain your own advice, before making any trades.
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