Diageo

[bluedonkey]

I'm waiting for the yield to hit 3%, though if it doesn't, I'm content not to buy.

[simoan]

I'm waiting for the yield to hit 3%, though if it doesn't, I'm content not to buy.

It hit this mark on Friday. Forecast dividend is 84p and I bought some at £27.49. Likely to do so again, although I don’t use such arbitrary levels to make buy or sell decisions. Buy quality when it’s on offer.

[bluedonkey]

I'm waiting for the yield to hit 3%, though if it doesn't, I'm content not to buy.

It hit this mark on Friday. Forecast dividend is 84p and I bought some at £27.49. Likely to do so again, although I don’t use such arbitrary levels to make buy or sell decisions. Buy quality when it’s on offer.

FWIW, I'm using the yield quoted on Hargreaves Lansdown as my indicator in this particular case. 2.81% at present. I'm fairly neutral on whether I buy or not as I am moving the portfolio away from individual shares.

[monabri]

It's the announcement coming just 6 weeks after a trading update that 'LAC' sales will now be down 20% that surely has spooked the market? That's a large revision! - How could DGE have got it so wrong? The natural question is what about other markets and their forecasts? This sort of management asleep at the wheel would have been crucified in lesser companies.

[Gerry557]

I had them on my keep an eye out list.

A 16% drop tickled my spidey senses. Then my other spidey senses said profit warnings often come in 3s

Hopefully this is a temporary blip. If so it might be a good time to add some but why were they so far out and what has been done to turn things around.

[Antonyfool]

Just reading Jeremy Clarkson's article in the Sunday Times and he posted an interesting statistic, one third of people in the UK do not drink alcohol.

I am a big fan of Diageo and am tempted to buy on the drop but might buy a little less now.

[bluedonkey]

If you look at the graph of the share price over several years, it looks awful.

[Antonyfool]

I forgot to write that one third of people under the age of 25 in the UK do not drink alcohol. The booze from last night clearly at work...

[BullDog]

It's the announcement coming just 6 weeks after a trading update that 'LAC' sales will now be down 20% that surely has spooked the market? That's a large revision! - How could DGE have got it so wrong? The natural question is what about other markets and their forecasts? This sort of management asleep at the wheel would have been crucified in lesser companies.

I have to say I'm deeply disappointed. Having bought at a year low I now find myself under water with Diageo. Cheap can get even cheaper etc..... I might be tempted to put in a limit sell order and get rid of it if there's a share price rebound. It suddenly doesn't seem as future proof a business as I recently thought it was. I should say, I'm one of those people who consumes no Diageo products and probably never will.

[monabri]

Just reading Jeremy Clarkson's article in the Sunday Times and he posted an interesting statistic, one third of people in the UK do not drink alcohol.

I am a big fan of Diageo and am tempted to buy on the drop but might buy a little less now.

The following research suggests ~20% of the UK population is under 18 (*)

https://www.researchgate.net/figure/The ... _242579139

Then we would need to factor in the percentage who do not drink for reasons of their faith.

There's still a big customer base out there in terms of number of people who do drink.


(*)...I never imbibed when I was <18...

[Dod101]

There must be another thread on this subject but I have never been overimpressed by Diageo and for them to get this so wrong is ridiculous Quality indeed.
Dod

[Bouleversee]

I see that Berkshire Hathaway is a major shareholder in Diageo. I wonder what they will do now. I am a relatively recent holder in Diageo so am probably losing on my purchase; am about to check, which I know will be depressing as I think there will be more losses than gains in my portfolio, although in the wider context that is ceasing to be of much importance.

[88V8]

If you look at the graph of the share price over several years, it looks awful.

They're up over three and five years... not a lot.

The UK's muslim population has grown from 4.4% to 6.5% from 2011/2021. They are not supposed to drink.

However, Diageo is a worldwide conglomerate and the fall as I read, relates to premium whisky sales in South America.

V8 (no holding)

[bluedonkey]

If you look at the graph of the share price over several years, it looks awful.

They're up over three and five years... not a lot.

The UK's muslim population has grown from 4.4% to 6.5% from 2011/2021. They are not supposed to drink.

However, Diageo is a worldwide conglomerate and the fall as I read, relates to premium whisky sales in South America.

V8 (no holding)

My understanding is that Turkey, for example, are significant consumers of Scotch. They were when I was in Istanbul many years ago anyway.

[monabri]

Yeah..but no, but yeah...

https://www.diageo.com/en/news-and-medi ... utive-year

[Bouleversee]

Yeah..but no, but yeah...

https://www.diageo.com/en/news-and-medi ... utive-year

I'm sure that will make a big difference to profits and s.p., Mon, so I'll drink to that with my cocoa.

[bluedonkey]

Waiting for the yield to hit 3% (per HL) has an unhappy parallel for me with GSK. Many years ago I jumped at the opportunity to buy GSK when the yield rose to 4%, since when that share has not done much. GSK was also a "quality" share with a moat, supposedly.

[Dod101]

Yeah..but no, but yeah...

https://www.diageo.com/en/news-and-medi ... utive-year

I'm sure that will make a big difference to profits and s.p., Mon, so I'll drink to that with my cocoa.

I wish they would concentrate on selling more booze. This sort of stuff seems to be given priority rather than the stuff that sells their product.

Diageo needs a hard nosed CEO whose job is to sell more booze, although of course it may be that their market is saturated and more growth is not possible. Beginning to wonder if like the tobaccos, its time is passing.
Dod

[simoan]

I'm sure that will make a big difference to profits and s.p., Mon, so I'll drink to that with my cocoa.

I wish they would concentrate on selling more booze. This sort of stuff seems to be given priority rather than the stuff that sells their product.

Diageo needs a hard nosed CEO whose job is to sell more booze, although of course it may be that their market is saturated and more growth is not possible. Beginning to wonder if like the tobaccos, its time is passing.
Dod

Premiumisation is not necessarily about selling more, although clearly volume is the simplest way to increase profits. I’m not going to extrapolate my own behaviour to all Diageo’s customers and markets, but I drink far less than I used to but now spend more on the higher quality products I do buy. People trade up when they have more disposable income. I have no idea what the future holds for the alcoholic drinks market, although I suspect it will look a lot like the past and increasing prosperity in developing countries will lead to higher sales, but that’s why we all have portfolios.

[EthicsGradient]

I wish they would concentrate on selling more booze. This sort of stuff seems to be given priority rather than the stuff that sells their product.

Diageo needs a hard nosed CEO whose job is to sell more booze, although of course it may be that their market is saturated and more growth is not possible. Beginning to wonder if like the tobaccos, its time is passing.
Dod

Premiumisation is not necessarily about selling more, although clearly volume is the simplest way to increase profits. I’m not going to extrapolate my own behaviour to all Diageo’s customers and markets, but I drink far less than I used to but now spend more on the higher quality products I do buy. People trade up when they have more disposable income. I have no idea what the future holds for the alcoholic drinks market, although I suspect it will look a lot like the past and increasing prosperity in developing countries will lead to higher sales, but that’s why we all have portfolios.

With the "OK to drink this much" limits advised by medics or authorities shrinking around the world, I would think that's fairly common behaviour.