Diageo plc (NYSE:DEO) to Issue Semi-annual Dividend of $2.52

Key Points

• Diageo plc has announced a semi-annual dividend of $2.52 per share, reflecting a 55.5% increase from the previous dividend of $1.62.
• The dividend will be paid on December 4th to investors on record as of October 17th, with an ex-dividend date of the same day.
• Diageo has a current payout ratio of 47.9%, indicating that its dividend is well-covered by earnings as analysts forecast an earning of $6.81 per share for the coming year.

Diageo plc (NYSE:DEO - Get Free Report) announced a semi-annual dividend on Friday, August 15th, Wall Street Journal reports. Investors of record on Friday, October 17th will be given a dividend of 2.5192 per share on Thursday, December 4th. This represents a dividend yield of 370.0%. The ex-dividend date of this dividend is Friday, October 17th. This is a 55.5% increase from Diageo's previous semi-annual dividend of $1.62.

Diageo has a dividend payout ratio of 47.9% indicating that its dividend is sufficiently covered by earnings. Equities analysts expect Diageo to earn $6.81 per share next year, which means the company should continue to be able to cover its $3.24 annual dividend with an expected future payout ratio of 47.6%.

Diageo Stock Up 0.2%

DEO traded up $0.21 during midday trading on Friday, reaching $110.92. 712,661 shares of the company were exchanged, compared to its average volume of 1,115,105. The company has a market cap of $61.71 billion, a price-to-earnings ratio of 16.19, a price-to-earnings-growth ratio of 3.34 and a beta of 0.53. Diageo has a one year low of $96.45 and a one year high of $142.73. The company's fifty day moving average price is $104.15 and its 200 day moving average price is $108.07. The company has a debt-to-equity ratio of 1.62, a quick ratio of 0.67 and a current ratio of 1.60.

Wall Street Analysts Forecast Growth

Several equities research analysts have commented on DEO shares. The Goldman Sachs Group upgraded shares of Diageo from a "sell" rating to a "neutral" rating in a research note on Thursday, August 7th. Morgan Stanley restated an "underweight" rating on shares of Diageo in a research note on Monday, May 12th. One analyst has rated the stock with a sell rating, three have given a hold rating and four have assigned a buy rating to the company. According to MarketBeat, the stock currently has an average rating of "Hold" and a consensus target price of $129.00.

Diageo Company Profile

Diageo plc, together with its subsidiaries, engages in the production, marketing, and sale of alcoholic beverages. The company offers scotch, gin, vodka, rum, raki, liqueur, wine, tequila, Chinese white spirits, cachaça, and brandy, as well as beer, including cider and flavored malt beverages. It also provides Chinese, Canadian, Irish, American, and Indian-Made Foreign Liquor whiskies, as well as flavored malt beverages, ready to drink, and non-alcoholic products.

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