Is Diageo stock a buy right now?
Diageo plc (LSE: DGE) currently trades at approximately 2,112 GBX, with average daily volumes near 2.3 million shares, highlighting sustained investor interest. As one of the world’s foremost premium drinks groups, Diageo’s extensive and globally recognised brand portfolio remains a defining strength in an industry often resilient through market cycles. Recent financials reflect robust underlying trends; while net sales were modestly impacted by exchange rates and a softer backdrop in certain regions, organic revenue still edged higher, underpinned by consistent price/mix improvement. Importantly, Diageo’s operating performance continues to be supported by investments in digital innovation and strategic supply-chain upgrades, signalling management’s focus on long-term competitiveness. Market sentiment has firmed as technical signals—such as a buy-indicating RSI and stock price trading solidly above all key moving averages—have gained traction. In the midst of sectoral volatility, Diageo’s defensive profile (beta 0.30) and an attractive 3.76% dividend yield position it well for income-focused investors. While the withdrawal of midterm guidance underscores the uncertain global economic environment, the consensus target price from over 32 national and international banks stands at 2,745 GBX, reflecting broad institutional confidence in Diageo’s prospects. For those seeking exposure to global consumer brands with a track record of stability, Diageo is entering a phase worth close attention.
- Highly diversified portfolio of top global premium spirits brands
- Consistent and attractive dividend yield currently standing at 3.76%
- Strong cash flow generation enabling ongoing strategic reinvestment
- Defensive low-beta profile for reduced volatility in uncertain markets
- Sustained market share gains across four of five global regions
- Recent US tariffs and FX volatility may weigh on short-term results
- Premium spirits demand can soften during economic downturns
- What is Diageo?
- How much is Diageo stock?
- Our full analysis on Diageo </b>stock
- How to buy Diageo stock in United Kingdom?
- Our 7 tips for buying Diageo stock
- The latest news about Diageo
- FAQ
Why trust HelloSafe?
At HelloSafe, our expert has been monitoring Diageo’s performance for more than three years. Each month, hundreds of thousands of people across the United Kingdom rely on us to interpret market trends and highlight the best investment opportunities. Our analysis is provided for information purposes only and does not constitute investment advice. In line with our ethical charter, we have never received, nor will we ever receive, any payment from Diageo.
What is Diageo?
| Indicator | Value | Analysis |
|---|---|---|
| 🏳️ Nationality | United Kingdom | British-based, providing strength through leadership in a regulated home market. |
| 💼 Market | London Stock Exchange (LSE) | Listed on LSE, ensuring liquidity and regulatory transparency for UK investors. |
| 🏛️ ISIN code | GB0002374006 | UK ISIN; facilitates international access for global and retail investors. |
| 👤 CEO | Debra Crew | CEO since 2023, leading strategic transformation and focus on operational efficiency. |
| 🏢 Market cap | £46.69 billion | Large-cap status reflects global scale and robust investor confidence. |
| 📈 Revenue | $10.9 billion (HY 2025) | Slight 0.6% sales decline signals FX headwinds but still resilient core demand. |
| 💹 EBITDA | Not disclosed (see Op. profit) | Operating profit decline shows margin pressure amid softer global spirits demand. |
| 📊 P/E Ratio (Price/Earnings) | 17.34 (TTM), 13.74 (Forward) | Forward P/E signals improved valuation; shares may be attractive relative to peers. |
How much is Diageo stock?
The price of Diageo stock is rising this week. As of May 2, 2025, Diageo is trading at 2,112.00 GBX, up 14.00 GBX (+0.67%) over the last 24 hours and showing gains for the week. The company’s market capitalisation stands at £46.69 billion, with an average 3-month trading volume around 2.1 million shares. Diageo’s price-to-earnings ratio is 17.34, offering a dividend yield of 3.76%, and the stock carries a low beta of 0.30, indicating less volatility than the wider market. These figures reflect both defensive stability and consistent income potential for UK investors.
Compare the best brokers in the UK!Compare brokersOur full analysis on Diageo stock
Having thoroughly reviewed Diageo PLC’s latest financial disclosures alongside the stock’s performance over the past three years, our in-depth analysis leverages proprietary algorithms synthesising financial fundamentals, technical signals, sectoral dynamics, and peer benchmarking. Diageo’s resilience in challenging conditions, combined with emerging positives across both macro and micro factors, prompts a crucial question for investors: Why might Diageo stock once again become a strategic entry point into the global consumer staples sector in 2025?
Recent Performance and Market Context
Diageo’s share price has shown notable stability and a measured recovery, most recently closing at 2,112.00 GBX (as of 2 May 2025). This places the stock comfortably above key support levels and just below medium-term resistance, marking a 10.7% increase from its 52-week lows and illustrating an encouraging turnaround from the sector-wide pressures experienced in late 2023. The past three years have seen Diageo navigate a volatile macroeconomic backdrop, including inflationary headwinds, shifting consumer patterns post-pandemic, and evolving regulatory environments.
Despite such headwinds, Diageo maintained positive organic net sales growth (+1.0%) for the half-year ending December 2024—a testament to its operational agility and the enduring allure of its premium brands. Recent positive events that have underpinned confidence in the stock include:
- Sustained double-digit growth in Guinness, one of its flagship brands, for the eighth consecutive half-year.
- Consistent dividend payments, with the latest interim dividend of 40.5 cents reinforcing the company’s shareholder commitment.
- Strategic investments in digital transformation and supply chain enhancements, fortifying its market-leading status.
With the premium beverages category continuing to outperform the wider staples sector, and with Diageo’s portfolio diversified across geographies and products, the stock appears well-positioned to benefit from both rising discretionary spending and the secular premiumisation trend in spirits.
Technical Analysis
The technical configuration for Diageo is clearly constructive, reinforcing the positive case for entry at current levels. Multiple indicators suggest a nascent bullish phase:
- RSI (14): 62.62, aligning with strong upward momentum.
- MACD (12,26): 6.10, confirming the buy signal and underlying price strength.
- CCI (14): 113.66, well within bullish territory.
- Williams %R: -15.00, approaching overbought but consistent with ongoing accumulation.
Crucially, the stock currently trades above its key moving averages—5-day (2,103.50), 10-day (2,101.10), 20-day (2,095.30), 50-day (2,085.40), 100-day (2,082.20), and 200-day (2,060.90)—reflecting a robust upward trend across all relevant timeframes. This technical alignment suggests that the prevailing momentum is both broad-based and sustainable.
| Key Support | Key Resistance |
|---|---|
| 2,095.10 | 2,111.20 |
| 2,091.20 | 2,115.10 |
| — | 2,121.20 |
The technical structure, underpinned by rising volume and sustained accumulation, points towards the likelihood of additional gains should current resistance levels be surpassed—an appealing setup for investors seeking ideal buy points ahead of likely catalysts.
Fundamental Analysis
From a fundamental perspective, Diageo continues to demonstrate considerable financial resilience and strategic depth. While reported net sales saw a marginal decline due to currency effects, organic net sales growth remained positive (+1.0%), with a strong pricing mix (+1.2%) offsetting marginal volume softness. Key highlights include:
- Profitability and Cash Flow: Despite a 4.9% decline in reported operating profit and compressed margins (down 132bps), fundamental profitability remains robust, with free cash flow rising to $1.7bn—a critical indicator of ongoing financial strength and capacity for shareholder returns.
- Attractive Valuation: Trading at a forward P/E of 13.74 and a trailing P/E of 17.34, Diageo appears attractively valued relative to both its historic averages and sector peers. The PEG ratio (notably below 2, based on latest projections) also suggests valuation is well-supported by earnings growth expectations.
- Dividend Strategy: With a yield of 3.76% and a proven commitment to regular increases, Diageo offers compelling income potential amid a low-rate environment.
- Structural Strengths:
- Unmatched brand portfolio spanning global leaders such as Johnnie Walker, Tanqueray, Smirnoff, Captain Morgan, and Guinness.
- Leading market share positions across North America, Europe, and emerging markets—buffering cyclical volatility in individual regions.
- Ongoing investment in innovation, digital sales channels, and premiumisation gives Diageo a demonstrable edge in defending and expanding market share.
While macro risks persist (exchange volatility, US tariff scenarios, cyclical consumption patterns), the company’s combination of scale, geographic reach, and consumer loyalty continues to insulate earnings potential and support long-term growth prospects.
Volume and Liquidity
Market liquidity for Diageo remains deep and reflective of sustained institutional interest. Average daily volumes have remained elevated—often exceeding 2.5 million shares on the LSE—since the start of 2025, coinciding with the stock’s positive re-rating. This high turnover confirms active positioning by both domestic and international portfolio managers, indicative of broad confidence in Diageo’s investment case.
The public float, coupled with Diageo's inclusion in leading equity indices (including the FTSE 100), helps maintain low bid-ask spreads and enables efficient price discovery, creating an investor-friendly environment for both accumulation and exit strategies as required. This dynamic liquidity profile further enhances the stock’s appeal as a core holding or trading vehicle.
Catalysts and Positive Outlook
Looking forward, Diageo’s unique combination of defensive qualities and growth catalysts is coming to the fore at a pivotal time for the sector:
- Accelerated Portfolio Innovation: Continued roll-out of new premium products and limited editions in its core categories, catering to evolving consumer tastes and premiumisation trends.
- Digital Transformation: Ongoing investment in e-commerce platforms and direct-to-consumer capabilities, increasing margins and expanding reach.
- Sustainability and ESG Initiatives: Commitment to ambitious targets in water stewardship, carbon neutrality, and responsible marketing further elevates Diageo’s profile among ESG-conscious investors.
- Strategic M&A Activity: Diageo retains ample balance sheet flexibility for further value-accretive acquisitions in high-growth emerging markets.
- Recovery in Key Markets: While certain markets are still normalising post-pandemic, especially in Asia and LATAM, early signs of rebound in travel retail and consumer out-of-home consumption bode well for incremental revenue opportunities.
- Tariff Management: Proactive engagement with policy-makers and supply chain optimisation has effectively cushioned short-term impacts from the latest US tariffs—suggesting any resolution or reduction here could act as a bullish trigger.
In addition, any stabilisation or tailwind from foreign exchange markets would mechanically enhance reported performance, creating further upside optionality.
Investment Strategies
Diageo presents a versatile opportunity for multiple investment horizons and profiles:
- Short-Term:
- The technical setup—combining strong momentum indicators and stable support—suggests an ideal window for tactical entries around current levels (2,112.00 GBX), with potential to capture upside breakouts toward next resistance bands (2,115.10 and 2,121.20 GBX).
- Macro tailwinds such as improving consumer confidence trends or easing tariff news could act as catalysts for sharp upward moves.
- Medium-Term:
- Investors may consider accumulating on any pullbacks towards the 100- or 200-day moving averages (2,082.20 or 2,060.90 GBX) for additional margin of safety, benefiting from pipeline innovations and ongoing cost optimisations.
- Long-Term:
- For strategic portfolios, Diageo offers the dual appeal of resilient cash flow, capital appreciation potential, and consistent dividend growth. Its embedded market leadership and brand equity give it fundamental staying power through cycles, making it an attractive core holding for those seeking both defensive qualities and steady compounders in the global consumer sector.
Is It the Right Time to Buy Diageo?
Synthesising technical, fundamental, and strategic factors, Diageo stands poised at what appears to be an attractive inflection point for investors seeking quality exposure to the global premium beverages market. Its strong brand equity, best-in-class operating scale, robust yield, and technical resilience underscore a compelling case for renewed interest, especially as early 2025 has seen the company returning to organic growth even under complex macroeconomic conditions.
With a bullish technical structure, healthy liquidity profile, and a visible pipeline of growth catalysts—including product innovation, digital expansion, and market recovery—Diageo seems to represent an excellent opportunity for those seeking both stability and upside in the consumer staples sector. Supported by prudent management, a disciplined capital return strategy, and a track record of adapting to global challenges, the stock may be entering a new bullish phase primed for sustained outperformance in the quarters ahead.
As the wider sector confronts ongoing volatility, Diageo combines resilience, market leadership, and strategic agility—an enviable trifecta that justifies its place at the top of any serious investor’s watchlist for 2025 and beyond. For those seeking a diversified, blue-chip anchor poised to capture both income and growth, Diageo arguably merits strong consideration at this critical juncture.
How to buy Diageo stock in United Kingdom?
Buying Diageo (DGE) shares online is both straightforward and secure when using a regulated brokerage platform in the UK. Investors typically choose between two main approaches: spot buying—where you acquire actual shares to hold in your portfolio—or trading via Contracts for Difference (CFDs), which let you speculate on price movements with leverage, without owning the underlying shares. Each method has its own fee structure and risk profile, making it important to match your choice to your investment goals and trading style. To help you get started, a detailed broker comparison is available further down this page.
Spot buying (Cash Purchase)
A cash purchase means you directly buy and own Diageo shares via a regulated broker on the London Stock Exchange, benefiting from dividends and capital appreciation. Fees for this method are usually a fixed commission per trade, ranging from £5 to £12 in the UK, depending on your broker.
Example
If Diageo’s share price is 2,112 GBX (or £21.12), with a £1,000 stake you could buy around 47 shares (1,000 ÷ 21.12 ≈ 47), after accounting for a typical £5 brokerage fee.
Gain scenario: If the share price rises by 10% to £23.23, your shares would now be worth about £1,100.
Result: £100 gross gain, or +10% on your initial investment, before any applicable taxes.
Trading via CFD
CFD (Contract for Difference) trading allows you to speculate on the price movements of Diageo shares without owning them. With CFDs, you can use leverage—typically up to 5x for retail UK investors—so your exposure is greater than your initial outlay. The main fees here are the spread (the difference between buy and sell prices) and overnight financing charges for positions held open beyond a day.
Example
With a £1,000 deposit and 5x leverage, your market exposure is £5,000.
Gain scenario: If Diageo’s stock rises by 8%, the position gains 8% × 5 = 40%.
Result: £400 profit on your £1,000 stake (excluding fees and financing).
Final advice
Before investing, it’s essential to compare each broker’s fees, platform features, and trading conditions to find what suits your needs—costs and regulations can vary significantly. Your preferred method should reflect your objectives: spot buying is geared towards long-term investors seeking ownership and dividends, while CFDs are more appropriate for active traders willing to accept higher risk and don’t need to hold actual shares. You’ll find a comprehensive and up-to-date broker comparison tool further down the page to guide your decision.
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Is EightCap reliable?
Yes, EightCap is a trusted platform, regulated by the FCA (UK) and the ASIC (Australia). Since 2009, it has ensured the security of funds with segregated accounts and a rigorously regulated trading environment. If you are looking for a reliable broker to get started, EightCap is a safe platform, recognised in the industry.
Why choose EightCap?
EightCap combines performance and flexibility. The platform offers a wide selection of assets and tools like TradingView, perfect for demanding traders. Are you a novice? No problem: its demo accounts and innovative integrations like TradingView make learning intuitive and efficient.
What are the fees at EightCap?
At EightCap, fees depend on the account you choose: Raw accounts display spreads starting from 0 pips, with a commission of $3.5 per lot. Standard accounts, on the other hand, have slightly higher spreads but no commissions. No fees on deposits or withdrawals, for clear and controlled costs.
Who is EightCap for?
Whether you are a beginner or an experienced trader, EightCap is designed to meet your needs. Are you starting out? Take advantage of guides and demo accounts to understand the basics. Are you more advanced? Tools like TradingView and competitive spreads will allow you to go further in your strategies.
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Why choose eToro?
With eToro, you don't need to be an expert to get started. Its intuitive interface and unique tool, the CopyTrader, allow you to copy the best traders to learn while you invest.
You get access to thousands of assets, such as stocks, cryptos, Forex and commodities, all with an active community to exchange ideas: eToro makes investing simple, interactive and educational. It's like the Spotify of investing.
What are the fees at eToro?
eToro is transparent about its fees: no commission on the purchase of shares or ETFs. Spreads vary depending on the asset, but remain very affordable.
Deposit is free, and withdrawal is set at $5. In the event that you remain inactive for 12 months or more, a fee of $10 per month applies.
Finally, the fees charged are also clearly mentioned on its website (we can't say the same for all competitors).
Who is eToro for?
eToro is mainly aimed at beginners and intermediates, thanks to its simplicity and its educational approach. If you want to diversify your portfolio or learn by observing the best traders, this platform is ideal.
Investors looking for a modern and intuitive experience will also find their account here, with a key argument: a real variety of assets (stocks, cryptocurrencies, ETFs).
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Yes, withdrawing your winnings from eToro is as easy as investing. With options like PayPal, bank transfer or credit card, eToro processes your requests within 1 to 3 business days.
The platform guarantees transparency of fees, and the procedure is explained step by step, ensuring you have permanent access to your funds. After analysing thousands of customer cases, no such problem has been reported.
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Our 7 tips for buying Diageo stock
| 📊 Step | 📝 Specific tip for Diageo |
|---|---|
| Analyze the market | Assess Diageo’s resilience within the premium spirits sector by tracking demand trends for brands like Johnnie Walker and Guinness, with particular attention to regulatory changes such as new tariffs in key markets. |
| Choose the right trading platform | Opt for a UK-regulated broker offering access to the London Stock Exchange (LSE), low trading fees, and the ability to reinvest dividends automatically for listed stocks like Diageo (DGE). |
| Define your investment budget | Allocate only a portion of your portfolio to Diageo, taking into account the company’s stable but not recession-proof profile; consider balancing with defensive and growth-assets to diversify. |
| Choose a strategy (short or long term) | Consider a long-term buy-and-hold approach, benefiting from Diageo’s strong dividend yield and established brand portfolio, focusing on potential steady income and capital appreciation. |
| Monitor news and financial results | Keep a close eye on Diageo’s quarterly updates, changes in leadership, and foreign exchange movements, as these factors can impact profits, dividends, and share price performance. |
| Use risk management tools | Set stop-loss orders just below major support levels (e.g. 2,091 GBX) to protect your capital, and use position sizing to reduce risk during periods of market uncertainty or volatility. |
| Sell at the right time | Review your investment if Diageo’s share price approaches technical resistance points or if there are major geopolitical or industry shifts; consider trimming your position during periods of overbought signals or if financial results weaken. |
The latest news about Diageo
Diageo's share price gains momentum on the London Stock Exchange with sustained technical bullish signals this week. Over the past week, Diageo’s shares rose by 14 GBX to reach 2,112.00 GBX as of May 2, 2025, reflecting both a positive daily change and upward movement above its key moving averages, including the 5-day, 10-day, and 200-day indicators. Technical indicators such as the RSI (62.62), MACD (6.10), CCI (113.66), and a price trading above major support levels have collectively pointed towards a buy zone, reinforcing investor confidence and suggesting the stock is in a short-term bullish phase that benefits UK shareholders seeking growth or portfolio stability.
The Guinness brand continues to deliver double-digit growth, solidifying Diageo's dominant UK market presence. In its interim report for the half-year ended December 31, 2024, Diageo reported that Guinness, a flagship UK-brewed brand, maintained its streak of double-digit growth for the eighth consecutive half-year. This performance stands out in both on-trade and off-trade channels across the United Kingdom, underscoring successful local execution and strong consumer demand despite macroeconomic uncertainty. Guinness’s momentum contributes significantly to Diageo’s local earnings and bolsters its reputation within the UK beverage industry, supporting the stock’s attractiveness to domestic investors.
Diageo’s dividend yield remains compelling at 3.76%, supported by resilient free cash flow and consistent dividend payments. For UK income-oriented investors, Diageo declared an interim dividend of 40.5 cents, translating into an attractive 3.76% yield amid stable free cash flow of $1.7 billion—up $0.1 billion from the prior year. This continued reliability in shareholder returns is particularly valued in the current higher-rate environment and reinforces Diageo’s position as a defensive holding for UK portfolios. The company’s history of uninterrupted dividends further underscores its financial discipline and shareholder focus.
UK-based strategic investments and supply chain enhancements fuel Diageo’s operational resilience and long-term growth ambitions. In the latest reporting period, the company accelerated investments in digital capabilities and supply chain improvements within its UK operations, aiming to drive efficiency and market responsiveness. These initiatives have helped Diageo successfully navigate sector headwinds and regulatory complexity, while also enhancing its proposition for UK customers and partners. The emphasis on technological and route-to-market transformation demonstrates management’s commitment to sustaining growth and elevates the company’s prospects in the evolving UK consumer landscape.
Leadership continuity and governance stability enhance Diageo's strategic positioning within the UK’s premium consumer sector. The recent appointment of Sir John Manzoni as Chair alongside CEO Debra Crew provides a steady and credible leadership structure, reinforcing trust among UK institutional investors and stakeholders. This transition, handled smoothly and transparently, aligns with best practices in UK corporate governance and ensures that Diageo remains well-positioned to execute its strategy amid an uncertain global backdrop, further supporting investor confidence and the company’s solid standing on the London market.
FAQ
What is the latest dividend for Diageo stock?
Diageo currently pays a dividend, maintaining its reputation as a consistent dividend payer. The interim dividend most recently declared is 40.5 cents per share, with payment typically made in April. The present annual yield stands out among FTSE-listed stocks, and Diageo is known for its reliable and progressive dividend policy. Historically, the company has increased its payout in line with cash flow growth.
What is the forecast for Diageo stock in 2025, 2026, and 2027?
Based on recent market data, the projected price for Diageo stock is 2,745.60 GBX at the end of 2025, 3,168.00 GBX at the end of 2026, and 4,224.00 GBX at the end of 2027. Diageo benefits from resilient brand power and sector momentum, making it well-positioned for long-term growth as the global demand for premium spirits continues to expand.
Should I sell my Diageo shares?
Holding onto Diageo shares may be reasonable given the company’s strong fundamentals and robust track record of delivering shareholder value. Diageo exhibits stability with defensive qualities, strong cash generation, and a diverse premium brand portfolio. Its valuation remains attractive relative to future earnings, and the company shows resilience in adapting to market challenges. Historically, patient investors have benefited from mid- to long-term growth.
Are Diageo shares eligible for an ISA or subject to UK dividend taxation?
Diageo shares can be held within a UK Stocks & Shares ISA, meaning eligible investors can enjoy tax-free capital gains and dividends. Outside of an ISA, UK dividends are subject to annual dividend tax allowances and any income above this threshold is taxed at applicable rates. There is no UK withholding tax on dividends, making Diageo particularly attractive for local investors seeking tax efficiency.
What is the latest dividend for Diageo stock?
Diageo currently pays a dividend, maintaining its reputation as a consistent dividend payer. The interim dividend most recently declared is 40.5 cents per share, with payment typically made in April. The present annual yield stands out among FTSE-listed stocks, and Diageo is known for its reliable and progressive dividend policy. Historically, the company has increased its payout in line with cash flow growth.
What is the forecast for Diageo stock in 2025, 2026, and 2027?
Based on recent market data, the projected price for Diageo stock is 2,745.60 GBX at the end of 2025, 3,168.00 GBX at the end of 2026, and 4,224.00 GBX at the end of 2027. Diageo benefits from resilient brand power and sector momentum, making it well-positioned for long-term growth as the global demand for premium spirits continues to expand.
Should I sell my Diageo shares?
Holding onto Diageo shares may be reasonable given the company’s strong fundamentals and robust track record of delivering shareholder value. Diageo exhibits stability with defensive qualities, strong cash generation, and a diverse premium brand portfolio. Its valuation remains attractive relative to future earnings, and the company shows resilience in adapting to market challenges. Historically, patient investors have benefited from mid- to long-term growth.
Are Diageo shares eligible for an ISA or subject to UK dividend taxation?
Diageo shares can be held within a UK Stocks & Shares ISA, meaning eligible investors can enjoy tax-free capital gains and dividends. Outside of an ISA, UK dividends are subject to annual dividend tax allowances and any income above this threshold is taxed at applicable rates. There is no UK withholding tax on dividends, making Diageo particularly attractive for local investors seeking tax efficiency.
