Diageo (ADR) (DEO)

Diageo (ADR) (DEO)

Postby winston » Tue May 12, 2015 7:35 pm

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Best Stocks for the Next 10 Years: Diageo plc (ADR) (DEO)

U.K.-based Diageo plc (ADR) (NYSE:DEO) is the world’s largest seller of premium spirits, and its brands include Johnnie Walker scotch, Crown Royal Canadian whisky, Smirnoff and Ketel One vodkas, and Captain Morgan rum, among many, many others.

There is a lot to like about Diageo. In the developed world, drinkers are putting back less beer than they used to, but sales of wine and spirits have remained strong. This reflects both changing preferences by the aging baby boomers and the tastes of the millennials, who tend to prefer mixed drinks over beer.

But the real macro story here is Diageo’s exposure to emerging markets. Diageo expects to get fully 50% of its revenues from emerging markets this year, and that figure should rise with time.

“Emerging markets” might make some investors a little nervous these days given the volatility coming out of the region. But let me ask you a question: Ten years from now, which part of the world will you expect to have grown faster, the emerging economies of Africa, Asia and Latin America or the mature markets of the United States and Europe? I think you know my answer.

The rise of the emerging-market consumer is the macro trend of the next two decades.

Diageo trades for 24 times earnings and yields 2.3% in dividends. That is by no means “cheap” in a strict value sense, but remember that our time horizon here is 10 years. This is one of the best stocks to safely hold through 2025 and beyond, and I expect market-beating returns — even starting at today’s prices.

Source: InvestorPlace
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Re: Diageo (ADR) (DEO)

Postby winston » Mon Jun 08, 2015 7:25 pm

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Diageo shares are up based on a Brazilian report that says billionaire Jorge Paulo Lemann is considering a takeover bid for the drinks giant.

Lemann's investment firm 3G Capital has major investments in Burger King, Heinz and Anheuser-Busch InBev (BUD), and strong ties with Warren Buffett.


Source: CNN
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Re: Diageo (ADR) (DEO)

Postby winston » Sat Sep 17, 2016 2:04 pm

International Stocks to Buy: Diageo (DEO)
Diageo (NYSE: DEO)Country: United Kingdom
Forward P/E Ratio: 18

When it comes to global spirits leader Diageo plc (ADR) (NYSE:DEO), you might want to be careful in following Peter Lynch’s advice to invest in what you know. Doing too much primary research into Diageo’s liquor brands might unlock a predisposed mental illness!

Diageo is a global leader in scotch whisky, vodka and other spirits. Its brands include Johnnie Walker, Smirnoff, Captain Morgan and many others. Diageo is based in the U.K., which makes life somewhat complicated these days.

With the U.K.’s status in Europe still being resolved, no one knows what happens next. That uncertainty has pushed the British pound to multi-decade lows … which isn’t such a bad thing for Diageo. Many of its costs are denominated in cheap British pounds while most of its revenues come from overseas.

No American spirits maker matches Diageo in terms of size and scope. To put some numbers behind that, Diageo had global revenues of 10.8 billion euros last year, which equates to about $14.3 billion. The largest independent American spirits company — Jack Daniel’s maker Brown-Forman Corporation (NYSE:BF.B) did $4.1 billion in sales last year.

Considering Diageo’s larger global presence and its favorable currency tailwinds, I see it drinking its competition under the table.

Source: Investor Place
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Re: Diageo (ADR) (DEO)

Postby winston » Sun Oct 16, 2016 9:14 pm

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How Did The Key Categories Perform For Diageo In Its FY 2016?

While sales grew in North America, Europe, and Latin America and Caribbean, driven by Johnnie Walker and Buchanan, the sales decline in Africa and Asia Pacific were a drag on results.

Vodka, 13% of Diageo’s net sales, grew 1%, with the performance of Smirnoff, its largest brand in the category, improving 2%.


Beer is expected to be the primary growth driver for the company in Africa, even in the future.


Source: Forbes

http://www.forbes.com/sites/greatspecul ... cef6f53884
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Re: Diageo (ADR) (DEO)

Postby winston » Fri Dec 09, 2016 6:34 pm

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European Stocks to Buy for Big Dividends: Diageo (DEO)

Dividend Yield: 3%

What do Johnnie Walker, Smirnoff, Captain Morgan and Guinness all have in common?

They happen to be some of the biggest brands in their respective alcohol categories and have billions in annual global sales. They also happen to be owned and produced by Diageo plc (ADR) (NYSE:DEO).

All in all, DEO’s brand range includes 14 of the top 100 premium distilled spirits brands and seven of the top-20 premium spirits brands worldwide.

That gives DEO a massive global footprint that isn’t really affected by what happens in Europe. In fact, Diageo has spent much of the last few years adding capacity and brands in far-off locales such as India and China to gain from the growing consumer markets in these places.

These areas continue to see strong case volumes, sales and brand retention among drinkers. Meanwhile, new organic, natural flavors and varied promotions have helped turned the tide in slowing North American sales.

What it really means is that DEO stock remains a powerhouse of the global booze industry that continues to churn put healthy cash flows — cash flows that have trickled down to investors as big-time dividends.

Since its founding in 1998, Diageo has steadily paid a dividend semi-annually. That dividend has varied, as European dividend stocks base their payouts on percentages of profits, not a steady amount.

DEO currently yields 3%.

Source: Investor Place
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Re: Diageo (ADR) (DEO)

Postby winston » Fri Feb 17, 2017 1:49 pm

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Best Stocks to Buy: Diageo (DEO)

by Mustafa Khayat

Dividend Yield: 3.8%
Long-Term Growth: 9.6%

Unless Islamic State really does conquer the world and turn us all into teetotalers, I’d say it’s safe to assume that we’ll still be consuming alcohol a century from now. We all know what the world’s oldest profession is, but I’d argue that distilling booze is probably mankind’s second oldest profession.

And this brings me to global drinks giant Diageo plc (ADR) (NYSE:DEO). Diageo is about as close to technology proof as you’re going to get. At the end of the day, the process of fermentation really doesn’t change.

Tastes change, of course, but Diageo’s brands span across virtually all tastes and preferences. It owns the popular Johnnie Walker, Smirnoff, Captain Morgan, Baileys, Tanqueray and Guinness brands, among others, and its portfolio is always expanding.

Diageo isn’t cheap at current prices, trading for 25 times earnings. But if you’re looking for a stock that is likely to be around decades or even centuries from now, this is it.

Source: Investor Place
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Re: Diageo (ADR) (DEO)

Postby winston » Fri Oct 13, 2017 2:04 pm

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Stocks to Buy for the Next Decade: Diageo plc (ADR) (DEO)

by Mustafa Khayat

Ten years simply isn’t a long time for Diageo plc (ADR) (NYSE:DEO). The owner and distributor of alcoholic beverages worldwide has a number of products in its portfolio that are aged longer than that, most notably in its flagship Johnnie Walker line.

Diageo also owns Captain Morgan rum, Tanqueray gin, Smirnoff vodka and Guinness beer, among many others.

There are some concerns about increasing competition from smaller brewers and distilleries, but Diageo’s portfolio is diversified enough to weather potential issues in specific markets.

And so many of its major brands have decades, if not centuries, of brand equity that upstart rivals simply will not be able to erode. There’s still substantial room for growth in emerging markets, with Johnnie Walker in particular likely to benefit from the growing middle and upper class populations in India.

Add to that the fact that alcohol sales typically withstand overall economic weakness, and DEO stock looks downright cheap. At under 20x 2018 analyst earnings-per-share estimates, Diageo stock trades at a notable discount to other ‘defensive’ consumer stocks.

The Coca-Cola Co (NYSE:KO), for instance, trades at 23x forward EPS. Diageo appears safer, less challenged by political concerns, and with a 3% dividend, offers nearly as much income as KO. The combination makes Diageo a smart holding for the long-term.

Source: Investor Place
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Re: Diageo (ADR) (DEO)

Postby winston » Fri Oct 13, 2017 2:04 pm

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Stocks to Buy for the Next Decade: Diageo plc (ADR) (DEO)

by Mustafa Khayat

Ten years simply isn’t a long time for Diageo plc (ADR) (NYSE:DEO). The owner and distributor of alcoholic beverages worldwide has a number of products in its portfolio that are aged longer than that, most notably in its flagship Johnnie Walker line.

Diageo also owns Captain Morgan rum, Tanqueray gin, Smirnoff vodka and Guinness beer, among many others.

There are some concerns about increasing competition from smaller brewers and distilleries, but Diageo’s portfolio is diversified enough to weather potential issues in specific markets.

And so many of its major brands have decades, if not centuries, of brand equity that upstart rivals simply will not be able to erode. There’s still substantial room for growth in emerging markets, with Johnnie Walker in particular likely to benefit from the growing middle and upper class populations in India.

Add to that the fact that alcohol sales typically withstand overall economic weakness, and DEO stock looks downright cheap. At under 20x 2018 analyst earnings-per-share estimates, Diageo stock trades at a notable discount to other ‘defensive’ consumer stocks.

The Coca-Cola Co (NYSE:KO), for instance, trades at 23x forward EPS. Diageo appears safer, less challenged by political concerns, and with a 3% dividend, offers nearly as much income as KO. The combination makes Diageo a smart holding for the long-term.

Source: Investor Place
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Re: Diageo (ADR) (DEO)

Postby winston » Sat Feb 17, 2018 8:23 pm

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Safe Stocks to Buy Today: Diageo (DEO)

Diageo plc (ADR) (NYSE:DEO) is a spirits company that is twice as big by market cap as its closest competition.

Crown Royal, Ciroc, Smirnoff, Bailey’s, Ketel One, Guinness, Tanqueray, Captain Morgan, Bulleit, are just a few of the brands that are in the DEO stable.

When the markets get bouncy and the economy starts to undergo a transition like the one we’re experiencing now, it is usually cause for celebration as well as trepidation.

Either way, ‘sin’ stocks are at their best in these times, because either way people searching out a drink.

DEO stock had a solid 12 months, and got hit in the selloff a bit. But it’s regained most of its loss and is set for a strong 2018.

Source: Investor Place
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Re: Diageo (ADR) (DEO)

Postby winston » Thu Jul 20, 2023 9:43 pm

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Diageo (NYSE:DEO) is one of the smaller positions in Berkshire Hathaway’s portfolio. Berkshire owns a modest $40 million stake in the spirits and beer giant. However, Berkshire should seriously consider increasing the size of that position.

Diageo shares a lot of similarities with long-time Buffett favorite Coca-Cola (NYSE:KO). Beer and spirits are an accessible luxury that people can afford to buy with regularity.

Diageo’s brands are world-class with leading products such as Guinness, Johnnie Walker, Smirnoff, Don Julio, and many more.

Profit margins on these products are tremendous. And it’s hard for new competition to arrive, given the high regulatory thresholds to producing, marketing, and distributing alcohol.

Brands have a lifespan measured in centuries; Guinness, for example, has been in business since 1759.

As for valuation, DEO stock has been suffering from a hangover over the past few years with the share price holding roughly flat since 2019. This has come even as earnings continue to grow.

As a result, the firm’s forward P/E ratio is down to 21. The last time DEO stock was this cheap was back in late 2016, and shares proceeded to rally 50% over the next year. Things could be set for a similar run now.

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