Diageo Dividend yield




   GBP/share 
 Price  29.90
 Dividend  0.71
 Earnings  0.63
 Cash-flow  0.99
 Book value  2.90
 Equity  3.23

Diageo is part of Beverages business, which is part of Consumer Goods industry. Diageo is a company from UK, and his stocks are publicly traded.

Diageo paid a total dividend of 1,659 million GBP last year, for a market value of 69,876 millions (Market Cap 68,527 millions). Dividend per share of Diageo is 0.71 GBP, and his stock market price 29.90 GBP.

According to the chart below, where dividend yield is displayed, Diageo has a dividend yield of 2.36%, which is higher than the amount offered by both the market average and companies from UK. It is also bigger than average of Consumer Goods industry. This high dividend yield might be a sign to worry about the future of the company so deeper analysis is needed.

In addition, you should compare Diageo dividend yield with other Beverages companies or firms from UK.

Dividend yield of Diageo

Diageo Dividend Payout

About the ability of Diageo to maintain his current dividend of GBP 0.71 per share, an amount that accounts for 2.36%, we should study its payout ratio both on earnings and on cash-flows (see chart below). Diageo payout on ernings is currently 112.70%, which is higher than the market average, and companies of Consumer Goods industry, which are 38.16% and 45.22% respectively. Both figures show that Diageo can have problems to keep with his present dividend yield.

The payout on earnings should be complemented with the payout on cash flow since it is this last amount the one which can be distributed to shareholders. Cash flow per share of Diageo is GBP 0.99 per share, which is higher than the dividend per share paid by the company of GBP 0.71, so the company generates enough cash to maintain his dividend in the future.

The following figure shows payout ratios over earnings and cashflow of Diageo, compared againt world market average, UK companies, Consumer Goods industry and Beverages sector companies.

Diageo payout

Diageo Dividend History

Year Yield  GBP  Paypout  Shares* 
Present2.36%0.71112.70%2,337
20202.43%0.70111.11%2,337
20192.14%0.6950.36%2,349
20182.34%0.6558.56%2,460
20172.28%0.6257.41%2,517
20162.95%0.5964.84%2,519
20152.95%0.5657.73%2,519

*In millions

Diageo Stock performance

Finally, last moth Diageo showed a return of 6.30% compared to a worldwide 4.25% average, and a 4.48% of Consumer Goods firms. Over the last year, the company obtained a 15.60% versus a worldwide performance of a 53.42%. More detailed information can be seen in the following graph for UK and Beverages firms.

Diageo stock and market return