Diageo plc (NYSE:DEO) Announces $1.20 Dividend

Key Points

• Diageo declared a $1.20-per-share dividend, payable December 3 to shareholders of record October 16; the article reports a 252.0% yield. The dividend is supported by a 22.5% payout ratio.
• Analysts expect Diageo to earn $6.70 per share next year, which should cover its $1.52 annualized dividend and imply a projected payout ratio of 22.7%.
• Diageo shares opened at $95.06, up 1.2%, while analysts held a consensus “Hold” rating and an average price target of $106.25.

Diageo plc (NYSE:DEO - Get Free Report) declared a dividend on Thursday, August 13th. Shareholders of record on Friday, October 16th will be paid a dividend of 1.20 per share on Thursday, December 3rd. This represents a dividend yield of 252.0%. The ex-dividend date of this dividend is Friday, October 16th.

Diageo has decreased its dividend by an average of 0.0%annually over the last three years. Diageo has a payout ratio of 22.5% meaning its dividend is sufficiently covered by earnings. Equities research analysts expect Diageo to earn $6.70 per share next year, which means the company should continue to be able to cover its $1.52 annual dividend with an expected future payout ratio of 22.7%.

Diageo Trading Up 1.2%

Shares of NYSE DEO opened at $95.06 on Friday. Diageo has a 1-year low of $72.45 and a 1-year high of $116.41. The business has a 50-day moving average of $84.37 and a 200-day moving average of $84.02. The company has a quick ratio of 0.71, a current ratio of 1.60 and a debt-to-equity ratio of 1.53.

Wall Street Analyst Weigh In

Several brokerages recently commented on DEO. Loop Capital set a $99.00 target price on Diageo in a report on Thursday, June 18th. Weiss Ratings restated a "sell (d)" rating on shares of Diageo in a report on Friday, July 17th. Zacks Research downgraded shares of Diageo from a "hold" rating to a "strong sell" rating in a research report on Monday, July 27th. Finally, TD Cowen reiterated a "buy" rating on shares of Diageo in a research note on Monday. Six investment analysts have rated the stock with a Buy rating, four have given a Hold rating and two have issued a Sell rating to the company. According to MarketBeat.com, Diageo has an average rating of "Hold" and an average target price of $106.25.

Diageo Company Profile

Diageo plc is a global producer, marketer and distributor of alcoholic beverages, headquartered in London, England. The company was created through the 1997 merger of Guinness plc and Grand Metropolitan plc and is publicly traded on multiple exchanges, including the New York Stock Exchange NYSE: DEO and the London Stock Exchange. Diageo operates a worldwide business, selling products in a broad range of markets across the Americas, Europe, Africa, Asia and Latin America.

Diageo's core activities cover the production, marketing and sale of a diverse portfolio of spirits, beer and liqueurs.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source