Finder is committed to editorial independence. While we receive compensation when you click links to partners, they do not influence our content.

How to buy Diageo (DGE) stocks in Canada

Learn how to easily invest in Diageo stocks.

Diageo plc
LSE: DGE - GBX
p3,644.50
- p28.50 ( - 0.78%)
BEVERAGES-WINERIES & DISTILLERIES

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 3745p – a decrease of 0.98% over the previous week. Diageo employs 27,783 staff and has a trailing 12-month revenue of around £12.7 billion.

How to buy shares in Diageo

  1. Compare share trading platforms. Use our comparison table to help you find a platform that fits you.
  2. Open your brokerage account. Complete an application with your details.
  3. Confirm your payment details. Fund your account.
  4. Research the stock. Find the stock by name or ticker symbol – DGE – and research it before deciding if it's a good investment for you.
  5. Purchase now or later. Buy your desired number of shares with a market order or use a limit order to delay your purchase until the stock reaches a desired price.
  6. Check in on your investment. Optimize your portfolio by tracking your stock.

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

Information last updated 2022-01-24.
Latest market close3,673.00p
52-week range2,804.93p - 4,364.10p
50-day moving average 3,905.93p
200-day moving average 3,594.99p
Wall St. target price4,211.43p
PE ratio 33.0159
Dividend yield 0.726p (1.93%)
Earnings per share (TTM) 113.40p

Compare online stock trading platforms

Note: The dollar amounts in the table below are in Canadian dollars.

Name Product Finder Rating Stock Trading Fee Account Fee Available Asset Types Offer
FREE TRADES
Wealthsimple Trade
Finder Rating:
★★★★★
3.9 / 5
$0
$0
Stocks, ETFs
Get 2 free stocks when you deposit and trade $150.
Scotia iTRADE
Finder Rating:
★★★★★
3.8 / 5
$4.99 - $9.99
$0
Bonds, Options, Mutual Funds, ETFs, GICs, International Equities
Interactive Brokers
Finder Rating:
★★★★★
4.1 / 5
Min. $1.00, Max. 0.5%
$0
Stocks, Bonds, Options, ETFs, Currencies, Futures
OFFER
CIBC Investor's Edge
Finder Rating:
★★★★★
4 / 5
$4.95 - $6.95
$0 if conditions met, otherwise $100/year
Stocks, Bonds, Options, Mutual Funds, ETFs
Get up to $2,000 cash back. Conditions apply. Offer ends March 1, 2022.
Questrade
Finder Rating:
★★★★★
4.2 / 5
$4.95 - $9.95
$0
Stocks, Bonds, Options, Mutual Funds, ETFs, GICs, International Equities, Precious Metals
Get $50 in free trades when you fund your account with a minimum of $1,000.
Qtrade Direct Investing
Finder Rating:
★★★★★
4.1 / 5
$6.95 - $8.75
$0 if conditions met, otherwise $25/quarter
Stocks, Bonds, Options, Mutual Funds, ETFs, GICs
Get up to $5,000 cash back. Conditions apply. Offer ends March 1, 2022.
loading

Compare up to 4 providers

Online stock trading

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 3673p from 2022-01-25

1 week (2022-01-19) -0.98%
1 month (2021-12-24) -8.52%
3 months (2021-10-26) 1.21%
6 months (2021-07-26) 6.11%
1 year (2021-01-26) 26.11%
2 years (2020-01-24) 13.36%
3 years (2019-01-25) 35.24%
5 years (2017-01-26) 65.60%

Is Diageo under- or over-valued?

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 33x. In other words, Diageo shares trade at around 33x 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 3.429. 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

Diageo's EBITDA (earnings before interest, taxes, depreciation and amortisation) is £4.1 billion.

The EBITDA is a measure of a Diageo's overall financial performance and is widely used to measure a its profitability.

Diageo financials

Revenue TTM £12.7 billion
Operating margin TTM 29.46%
Gross profit TTM £7.7 billion
Return on assets TTM 7.19%
Return on equity TTM 33.18%
Profit margin 20.89%
Book value 2.95p
Market capitalisation £87 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

65%

Dividend payout ratio: 65.07% of net profits

Recently Diageo has paid out, on average, around 65.07% of net profits as dividends. That has enabled analysts to estimate a "forward annual dividend yield" of 1.93% 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 1.93% return on their shares, in the form of dividend payments. In Diageo's case, that would currently equate to about 0.726p per share.

Diageo's payout ratio would broadly be considered high, and as such this stock could appeal to those looking to generate an income. Bear in mind however that companies should normally also look to re-invest a decent amount of net profits to ensure future growth.

The latest dividend was paid out to all shareholders who bought their shares by 26 August 2021 (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 2804.9259p up to 4364.1001p. 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 0.4024. This would suggest that Diageo's shares are less volatile than average (for this exchange).

Diageo overview

Diageo plc, together with its subsidiaries, produces, markets, and sells alcoholic beverages worldwide. The company offers scotch, whisky, gin, vodka, rum, ready to drink products, Irish cream liqueur, 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, Smirnoff, Captain Morgan, Baileys, Tanqueray, and Guinness brands. The company has operations 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. .

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.

More on investing

More guides on Finder

Go to site