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Diageo Plc - DEO

Posted on the 01 December 2011 by Divstkforcomman @DivStkForComMan
Diageo plc, otherwise known as just Diageo, stock ticker DEO is engaged in the alcoholic beverage business with a collection of international brands. Diageo is a participant in the branded beverage alcohol industry and operates worldwide. Diageo produces and distributes a collection of branded premium spirits, beer and wine. The range of premium brands it produces and distributes includes Smirnoff vodka, CIROC vodka, Johnnie Walker scotch whisky, Baileys Original Irish Cream liqueur, Captain Morgan rum, JeB scotch whisky, Tanqueray gin and Guinness stout. In addition it also has the distribution rights for the Jose Cuervo tequila brands in North America and many other markets. Diageo’s beer brands include the global stout brand, Guinness. Diageo operates in North America, Europe, International and Asia Pacific. In June of 2010 DEO increased their ownership interest in London Group, the joint venture that owns NUVO, then in August of 2011 they acquired Mey Icki.
Currently DEO pays a $1.59 dividend, which is a 3.06% yield. They are buying back shares like it's going out of style. I strongly believe that high end items will always sell and during this fluctuating market there are lots of people who want premium stuff! No matter how bad the economy gets people are always going to buy booze. DEO holds a very strong competitive position with great brand names in the liquor industry. Their international exposure is key. It has long been said that as people age they tend to change from beer to distilled alcoholic products, and with the baby boomers moving their twilight years I expect more distilled alcohol to be sold which would bring more sales to DEO.
DEO's bottom line shows that consumers are gradually returning to the premium brands that they like as the economy slowly improves. Emerging markets will drive profits and DEO is well positioned to reap profits. Let's be honest, Diageo dominates the liquor isle. DEO owns the top liquor brand, the top vodka, the top tequila and whiskey along with all of Guinness and a 35% stake in Hennessy plus endless other brands! As long as people keep drinking go ahead and sleep soundly at night knowing Diageo is here to stay!
Feel free to visit Diageo's homepage, here. Also, analyze their brands here. Enjoy the videos below and you'll see why this stock is a winner! Go ahead and pour out alittle CIROC vodka and get this dividend party started right! Until next time, spend within your means, reinvest your dividends within a ROTH IRA stock portfolio, and drink responsibility.

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