You are here: Home - Investing - Experienced Investor - News -

Stock of the week: Diageo

0
Written by: YourMoney.com
26/06/2017
Helal Miah, investment research analyst at The Share Centre, picks Diageo as stock of the week.

Global drinks group, Diageo, is set to acquire Hollywood star George Clooney’s tequila brand Casamigos. Diageo will initially pay $700m, and – depending on the firm’s performance over the next 10 year – there is the potential for a further $300m. This sale will add to the group’s enviable portfolio of world renowned alcohol brands, including Johnnie Walker, Guinness, Smirnoff and Baileys.

The company has strong geographical diversification with exposure to large, developed markets such as the US, as well as fast-growing emerging markets in Asia and Africa. It now has full control of USL in India, its most important emerging market, where prospects are improving. Investors should note that a large proportion of sales come from the US and so the group is benefiting from the weakness in sterling as well as an increased demand for spirits in the region.

We continue to recommend a ‘buy’ on Diageo because of the strength of its brands, resilient sales in the US market, excellent long-term prospects for emerging markets, continued improvements in cost-cutting and a relatively good dividend yield. Interested investors should note that given the recent rise in its share price, we would suggest drip feeding into the stock.

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Which ISA is right for you? A round up of the six products available in 2017

From cash to innovative finance to lifetime, here's our guide to the ISA products available to savers this yea...

Guide to buy-to-let tax changes

In late 2015, former Chancellor George Osborne announced a range of  tax measures aimed at landlords, which t...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Five fund tips for a 0.25% interest rate environment

With interest rates stuck at a record low 0.25% and expectations rates could fall to close to zero, here are ...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Investing your money

Alliance Trust Plc gives you smart insight into how to invest your money

Money Tips of the Week

Read previous post:
2285987-housepercent
Remortgage approvals fall 10% in a year

Mortgage providers report that May saw remortgaging approvals of 24,248, which is a fall of 10% against last year and...

Close