Experienced Investor
Share Centre share of the week: Diageo
“Diageo is a global alcoholic beverages group with a wide product range spanning whisky, vodka, beer, gin and liqueurs and it operates in 180 countries. The group owns many well-known global brands such as Johnnie Walker, Guinness, Smirnoff, Baileys and Captain Morgan.
“Full year figures in July showed net sales up 5% to £10.8bn with pre-tax profits up 7.4% to £2.9bn. These numbers were slightly below expectations, reflecting the downturn in emerging markets and a small decline in US sales. However, news last week the group had sold its wine operations in the UK and US was well received by the market. As a result, the net proceeds will be used to reduce debt. Investors should acknowledge that, subsequently, the group is forecasting a return to growth this year.
“Diageo has a good geographical diversification with exposure to large, developed markets such as the US as well as fast-growing emerging markets in Asia and Africa.
“We currently recommend Diageo as a ‘buy’ for lower risk investors with a balanced portfolio. The company boasts strong brands including two which were recently featured in Interbrand’s list of the top 100 global brands across all sectors. Furthermore, we also like Diageo’s resilient sales in the US market, excellent long-term prospects in emerging markets, continued improvements in cost-cutting and a relatively good dividend yield.”
There are 0 Comment(s)
Big flu jab price hikes this winter: Where’s cheapest if you can’t get a free vaccine?
Pharmacies, supermarkets and health retailers are starting to offer flu jabs ahead of the winter season, but t...
Is now the time to fix your energy deal?
Fixed energy tariffs all but disappeared during the energy crisis. But now they are back with an increasing nu...
Everything you need to know about the pension triple lock
Retirees are braced to receive another bumper state pension pay rise next year due to the triple lock mechanis...
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.
The best student bank accounts in 2023: Cash offers, tastecards and 0% overdrafts
A number of banks are luring in new student customers with cold hard cash this year – while others are compe...
DIY investors: 10 common mistakes to avoid
For those without the help and experience of an adviser, here are 10 common DIY investor mistakes to avoid.
Mortgage down-valuations: Tips to avoid pulling out of a house sale
Down-valuations are on the rise. So, what does it mean for home buyers, and what can you do?
Money Tips of the Week
© AE3 Media Ltd, 21 Great Winchester Street, London EC2N 2JA, Company.