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Diageo plc (DGE.L)

Consumer Defensive Balanced

Diageo is a global drinks giant that owns famous brands like Guinness, Johnnie Walker, and Smirnoff.

£16.34
≈ 1,634p · London-listed shares are usually quoted in pence (GBX) elsewhere; the Almanac shows pounds (£1 = 100p).

Is Diageo plc a good stock for a UK beginner?

The honest version: Diageo is a global drinks giant that owns famous brands like Guinness, Johnnie Walker, and Smirnoff.

No rating · no target price · nothing for sale here
Price-32.4%
52-week range-18% past year
£16.34
Low £12.96High £21.42
Where today's price sits versus its past year - context, not a signal.
If you had put £1,000 into Diageo plc
£676-32%

Over about 2 years to 2026-07-31. This is the share price only - reinvesting the dividends would add to it. Past performance is not a guide to the future, and it could just as easily have fallen.

Market cap: The company's total value on the stock market - share price times the number of shares. Big = 'large-cap', small = 'small-cap'.
£36.34B
Avg volume: How many shares change hands on a typical day. Higher means it's easy to buy or exit without moving the price.
5.14M
Day range: The lowest and highest price the shares traded at during the latest day.
£16.27 – £16.46
52-week range: The lowest and highest the shares have traded over the past year - a sense of how wide the swings have been.
£12.96 – £21.42
P/E ratio: Price-to-earnings: the share price divided by yearly profit per share. Lower can mean cheaper; higher often means investors expect fast growth.
20.2
Dividend yield: The yearly dividend as a percentage of the share price - roughly the income you'd earn from dividends alone.
3.8%
Beta: How bumpy the share price is versus the whole market. Above 1 swings more than the market; below 1 is calmer. It's about the ride, not whether it goes up or down.
0.31
How bumpy is it?Beta: How bumpy the share price is versus the whole market. Above 1 swings more than the market; below 1 is calmer. It's about the ride, not whether it goes up or down. 0.31
Calm
Wild
Steadier than most

Based on beta - how much the price swings versus the whole market. Bumpier isn't bad; it just means a rougher ride, which matters more the sooner you might need the money.

Why has it been moving?▲ +1% past week · ▼ -18% past year

Prices move on results, news and the mood of the whole market - no single headline explains a day, and a quiet week is usually just noise, not a signal.

The bull case

The company successfully pivots to new drink categories and expands its reach.

The bear case

Long-term shifts in health trends lead to a permanent decline in alcohol demand.

What does Diageo plc do?

Diageo makes its money by selling a massive portfolio of alcoholic beverages to bars, restaurants, and shops all over the world. Because they own so many household names, they have a strong grip on the market, though they are currently navigating a period where people are spending a bit less on premium drinks. Watch whether they can nudge their sales growth back on track after a recent dip.

VQGMI
Factor profile

On our factor screen it looks strongest on quality and income, and weakest on growth.

Value: How cheap the stock looks versus profits, sales and assets (higher = cheaper). 43Quality: How profitable and financially healthy the company is (higher = stronger). 55Growth: How fast revenue and earnings are growing (higher = faster). 27Momentum: How the share price has been trending recently (higher = stronger recent run). 34Income: The dividend income on offer and how sustainable it looks (higher = more/steadier). 45
Quick checks
What's strong
  • Owns a massive collection of iconic, globally recognised brands.
  • High gross margins suggest strong pricing power.
  • Historically reliable dividend payer for income-focused portfolios.
What to watch
  • Growth screens low (27/100)
  • Economic downturns often lead people to switch to cheaper, non-branded drinks.
  • Changes in government regulations or taxes on alcohol could hit profits.
  • Supply chain costs for raw materials like grain and glass can be unpredictable.

What do Diageo plc's numbers mean?

P/E
18.5
This shows how much you are paying for every pound of the company's profit; a lower number can sometimes suggest a company is cheaper relative to its earnings.
Gross margin
60.0%
This tells us that for every pound of drink sold, 60 pence remains after covering the basic cost of making the product, showing they have strong control over their production costs.
Dividend yield
4.1%
This is the annual cash payout to shareholders as a percentage of the share price, which can be an attractive feature for those looking for steady income.
Beta
0.3
A low number like this suggests the share price tends to be much less jumpy than the wider stock market.

Does Diageo plc pay a dividend?

Yes - Diageo plc currently pays a dividend of about 3.8% a year (the yearly payout as a share of the price). A dividend is a slice of profit handed to shareholders; the yield moves as the price moves, and a company can cut or stop it.

More in Consumer Defensive

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Appears in
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What are the scenarios for Diageo plc?

An illustrative range for the year ahead, with the assumption behind each case — not a prediction or a price target.

£19£16£13today · £16▲ Bull · £18• Base · £16▼ Bear · £15in 1 yearILLUSTRATIVE · NOT A PREDICTION OR PRICE TARGET
Bull
+5% to +10%Consumer spending on premium spirits recovers faster than expected.
Base
-2% to +2%Sales remain flat as the company focuses on cost-cutting.
Bear
-5% to -10%Economic pressure leads to a further decline in global alcohol consumption.

What are the pros and cons of Diageo plc?

3bull points
6bear points

How many points the write-up makes each way — a balance check, not a score or verdict.

The bull case3
  • Owns a massive collection of iconic, globally recognised brands.
  • High gross margins suggest strong pricing power.
  • Historically reliable dividend payer for income-focused portfolios.
The catch3
  • Recent revenue growth has been negative.
  • High exposure to changing consumer tastes and health trends.
  • The share price has struggled significantly over the past year.
Key risks3
  • Economic downturns often lead people to switch to cheaper, non-branded drinks.
  • Changes in government regulations or taxes on alcohol could hit profits.
  • Supply chain costs for raw materials like grain and glass can be unpredictable.
What would flip the thesis

The write-up's own warning lights — if these start happening, the case above changes.

Confidence: medium · data: GBP · flags: none · Charts by TradingView Lightweight Charts™
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Built from public filings & market prices, checked for an education-only tone, and never a price target. How we make these →

This plain-English summary was auto-generated on 2026-08-01 from public data and checked for an education-only, no-advice tone (the figures above carry their own, usually fresher, 'as of' date). It's information, never a recommendation.

Figures as of 2026-08-01. Prices may be delayed and numbers can go stale - always double-check before acting.