Should I buy Diageo stock in 2025?

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At HelloSafe, our expert has been tracking Diageo's performance for over three years. Every month, over a million users in the UK trust us to decipher market trends and identify the best investment opportunities. Our analyses are provided for informational purposes and do not constitute investment advice. In accordance with our ethical charter, we have never been, and will never be, compensated by Diageo.

What is Diageo?

What is the price of Diageo stock?

The price of Diageo stock is rising this week. The current price stands at 1,920.00p, reflecting a 1.24% increase over the past 24 hours, though the stock is down 5.03% for the week. Diageo’s market capitalisation is £42.15 billion, with an average 3-month trading volume of 4.21 million shares. The price/earnings ratio is 16.41, the dividend yield is 4.31%, and the stock’s beta is low at 0.28. This mix of strong fundamentals and moderate volatility offers both stability and opportunity for long-term investors.

Our full analysis of the Diageo stock

We have reviewed Diageo’s latest financial results and stock performance over the past three years, leveraging a synthesis of market data, technical analysis, and proprietary algorithms powered by insights from multiple industry sources and peer comparisons. Our findings incorporate not only current financial ratios and trading patterns, but also structural trends shaping the global premium spirits sector. So, why might Diageo stock once again become a strategic entry point into the consumer staples segment in 2025?

Recent performance and market context

The Diageo share price currently stands at 1,920.00p, registering a modest intraday uptick of 1.24% even after a challenging six months marked by sector-wide turbulence. Over the past year, the share has softened by 22.06%, reflecting temporary pressures from macroeconomic headwinds. Despite this, the Group has delivered resilient quarterly revenue growth, with Q3 sales advancing 2.9% on a reported basis and 5.9% organically—testament to the enduring appetite for premium brands in both mature and emerging markets.

On the corporate front, Diageo’s proactive launch of the Accelerate programme is set to deliver $500 million in operational efficiencies within three years, supporting margin stabilisation and reinvestment capacity. The group’s recent sponsorship of the FIFA World Cup and continued outperformance in spirits innovation demonstrate a clear commitment to strategic expansion. This blend of adaptability and steady revenue reinforces Diageo’s status as a bellwether in the global premium drinks industry.

The macroeconomic backdrop—particularly in the UK and Europe—remains supportive for consumer staples, with premiumization trends and resilient household spending underpinning demand for established beverage brands. Evolving tastes, growth in no- and low-alcohol categories, and an expanding presence in southern Asia and Latin America further diversify Diageo’s earnings profile.

Technical analysis

Technical indicators present a compelling case for renewed investor interest in Diageo stock. The relative strength index (RSI) recently measured at 28.70, highlighting deeply oversold conditions—a classic precursor for bullish reversals. The Moving Average Convergence Divergence (MACD), while negative, is signalling a turnaround, reflecting early signs of momentum recovery. Although the share price still sits below the 20-, 50-, 100-, and 200-day moving averages, this compressed technical position offers higher upside potential should sentiment improve or a fundamental catalyst materialise.

Key support sits at 1,820.00p, the share’s 52-week low, effectively anchoring downside risk, while resistance at 2,677.00p marks an achievable medium-term upside target based on peer re-rating potential. Should Diageo breach the 2,000–2,100p area with increased volume, a trend reversal could quickly gain traction. These signals collectively point to an environment ripe for accumulation by forward-looking investors.

Fundamental analysis

Diageo’s fundamental profile remains robust, supported by diversified revenue streams (£4.376 billion reported in the latest quarter), stable profitability, and a business model anchored in recurring demand and global brand equity. The Group’s price/earnings ratio of 16.41 and dividend yield of 4.31% are especially notable in the current market; both valuations are attractive given the quality of the earnings and the historical premium afforded to sector leaders.

Long-term, Diageo’s ability to maintain organic volume growth (+2.8% in Q3 2025) as well as margin resilience demonstrates the effectiveness of both its pricing power and portfolio strategy. Innovations in premium spirits, robust investment in emerging markets, and ESG-aligned sustainability targets reinforce its leadership and future-proof its business model. Meanwhile, consistent cash generation—which is forecast to top $3 billion annually from 2026 under the Accelerate programme—underpins ongoing dividend growth and shareholder returns.

The company's iconic brands, which include Johnnie Walker, Guinness, Don Julio, Smirnoff, and Tanqueray, ensure global market share and resonance with shifting consumer preferences. Recent strategic partnerships and targeted acquisitions—especially in India and the Americas—expand Diageo’s reach, navigating short-term currency and tariff pressures through effective local market strategies.

Volume and liquidity

Diageo’s shares exhibit strong liquidity, with a three-month average daily volume of 4.21 million shares, providing ample depth and ensuring efficient price discovery. This consistent trading activity, coupled with a £42.15 billion market capitalisation, ensures minimal transaction friction and reflects institutional confidence.

A broad free float and global investor base favour a dynamic valuation environment, enabling Diageo shares to respond quickly to positive results or sector rerating. For retail investors, this liquidity also allows for gradual position building and flexible portfolio adjustments, further reducing entry and exit risks.

Catalysts and positive outlook

Several powerful catalysts are poised to drive Diageo’s share price higher in the coming quarters. The company’s Accelerate programme, which targets half a billion dollars in cost savings alongside ambitious $3 billion cash flow objectives, is already translating into expanded reinvestment for sustainable growth and innovation. New product launches in the Guinness and Don Julio ranges, as well as a broadened geographical footprint through partnerships and operational upgrades in India and Latin America, signal further topline and bottom-line momentum.

The group’s acquisition-driven diversification aligns well with ongoing global demand shifts and regional consumption tailwinds. ESG initiatives—particularly climate action, resource circularity, and community investment—now rank among Diageo’s most respected differentiators in the eyes of institutional investors. With the low-alcohol and premium categories outpacing broader beverage growth post-pandemic, Diageo appears ideally positioned to benefit from these consumption tailwinds.

Market-wide factors also present a constructive backdrop. Regulatory environments in core markets remain favourable for trusted global brands, and persistent volatility in rival emerging market operators only increases Diageo’s relative appeal. Analyst consensus continues to edge higher, with a consensus price target of 2,421.28p—representing attractive potential upside versus current levels.

Investment strategies

For short-term traders, Diageo’s pronounced technical oversold readings—combined with a low beta of 0.28—indicate a uniquely attractive entry for rapid cyclical rebounds. Swing traders could focus on price retracements near technical support at 1,820.00p, targeting 2,000–2,400p on renewed momentum. Intraday catalysts, such as quarterly reporting and major corporate events, offer tangible opportunities for disciplined profit-taking.

Medium-term investors with an eye on Q4 results or the impact of next year’s major sporting event partnerships should find the current valuation compelling. The anticipated improvement in organic revenue and margin, buoyed by ongoing cost savings, offers a clear path to market outperformance relative to sector peers. Positioning now could lock in an attractive dividend yield and allow investors to ride a likely rerating as sentiment rebounds.

Long-term investors benefit from the compounding power of Diageo’s growing dividend distributions, best-in-class brands, and consistent execution. The company’s track record of navigating inflationary cycles and shifting regulatory pressures makes it a pillar for portfolio diversification. In the context of the UK market’s defensive rotation and the global search for robust, yield-generating equities, Diageo’s fundamentals justify renewed interest at these levels.

Optimal entry points appear to coincide with current technical lows and modest valuations, providing an attractive risk/reward proposition. With clear margin of safety, recurring cash flow, and sectoral leadership, Diageo seems likely to reward patient, research-driven investors.

Is it the right time to buy Diageo?

Bringing together the technical, fundamental, and strategic angles, Diageo appears to represent an excellent opportunity for investors seeking both quality and growth in a global consumer staples champion. The company’s recent pullback has produced an attractive entry point, while the combination of consistent revenue growth, streamlining initiatives, world-class brands, and a secure, growing dividend yield creates a uniquely compelling risk/reward dynamic.

Key strengths include:

• Sector leadership and resilient brand portfolio
• Attractive valuation relative to long-term earnings growth
• Robust liquidity and investor confidence reflected in trading volumes
• Favourable technical signals indicating the potential for a bullish reversal
• Clear operational catalysts in efficiency, product innovation, and ESG

With the support of a proven management team and a roadmap to enhanced profitability, Diageo stock may be entering a new bullish phase, justified by both its fundamentals and market momentum. Investors looking to tap into the defensive qualities and growth potential of the premium spirits sector should seriously consider adding Diageo to their watchlist or portfolios at these levels. The current combination of technical support, strong income generation, and global market opportunity suggests that Diageo’s next chapter could be one of sustainable recovery and renewed outperformance—making now a highly favourable point at which to take a closer look.

How to Buy Diageo Stock in the UK

Buying Diageo shares online is simple and secure through any FCA-regulated broker in the UK. There are two main methods available: spot buying, where you directly acquire the shares, and trading via CFDs (Contracts for Difference), which lets you speculate on price movement without actually owning the shares. Both approaches offer convenient account setup, straightforward funding, and investor protection. For a detailed comparison of leading UK brokers, see our comprehensive reviews further down the page.

Spot buying

Cash buying of Diageo stock means purchasing the actual shares, making you a shareholder with voting rights and dividend eligibility. Brokers typically charge a fixed commission per order—commonly around £5 to £10 in the UK.

Gain scenario

If the Diageo share price is £19.20, you can buy around 52 shares with a £1,000 stake, including a brokerage fee of roughly £5.

If the share price rises by 10%, your shares are now worth £1,100.

Result: +£100 gross gain, i.e. +10% on your investment.

Trading via CFD

CFD trading on Diageo shares allows you to speculate on price changes using leverage, without owning the underlying stock. CFD brokers typically apply a spread (the difference between buying and selling price) and may also charge overnight financing fees for leveraged positions.

Example of a CFD Gain Scenario with Leverage

You open a CFD position on Diageo shares, with 5x leverage. This gives you a market exposure of £5,000 for a £1,000 deposit. ✔️ Gain scenario: If the stock rises by 8%, your position gains 8% × 5 = 40%. Result: +£400 gain, on a bet of £1,000 (excluding fees).

Final advice

Always compare brokers’ fees, trading platforms, and customer service before investing in Diageo shares. Your choice between spot buying and CFDs should depend on your investment goals, risk tolerance, and whether you want to hold real shares or actively trade price movements. See our broker comparator further down the page to help you choose the most suitable option.

Our 7 tips for buying Diageo stock

The latest news about Diageo

Diageo shares show a rebound of +1.24% over the latest London session. After a challenging period of sector-wide pressure, Diageo closed at 1,920.00p, marking a positive turn and suggesting renewed local investor interest in a context of technical oversold signals and resilient demand for premium brands in the UK market.

Diageo’s technical indicators signal a potential short-term rebound for UK investors. The RSI (14-day) has fallen to 28.70, officially entering the oversold zone, while the MACD remains in buy territory. This combination traditionally precedes a period of support or recovery for quality stocks like Diageo, offering constructive entry signals for those monitoring UK equities.

Diageo maintains a robust commitment to dividend distribution, attractive for UK income investors. With a dividend yield of 4.31% and a forthcoming ex-dividend date, Diageo continues to provide aligned income opportunities within UK tax-advantaged ISAs. This performance stands out in the FTSE 100, particularly in a defensive consumer staples segment.

Q3 results confirm improved sequential growth and stable performance in Diageo’s core UK market. Third-quarter revenues grew organically by 5.9%, meeting expectations and surpassing previous quarters, with premium brands like Guinness and Johnnie Walker maintaining strong footholds in the UK and Ireland—directly reinforcing Diageo’s resilient regional earnings base.

Market consensus on Diageo remains optimistic, with analysts targeting a 26% upside. The current analyst target of 2,421.28p for the London-listed stock indicates confidence in Diageo’s medium-term strategy, diversification, and operational progress—bolstering sentiment among UK-based professional investors seeking sector leaders.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.