Is Diageo floating anyone's boat right now?

mr_fishbulb

Off the back of Diageo's sales figures released last Thursday, I've been pondering if they should be my jump from funds to shares.

After an exciting weekend reading their figures, I'm tempted. They tick these boxes for me:

Large company, not likely to go bust any time soon,
Strong yearly growth in both profits and dividends,
Continue to attract new customers as consumers from emerging market countries look for premium drinks,
It's a vice industry,

As it's my first time buying shares, I'm naturally a bit hesitant. Is there anything I am missing? Anything else I should be looking at?

Anyine else considering adding Diageo to their portfolio?

purch

Is Diageo floating anyone's boat right now?

It depends on how much I've drunk :eek:

ffacoffipawb

mr_fishbulb wrote: »

Anyine else considering adding Diageo to their portfolio?

Held them for 2 years, very pleased as I paid just over 800p for them. Not tempted to sell.

sabretoothtigger

Large company, not likely to go bust any time soon,
Strong yearly growth in both profits and dividends,
Continue to attract new customers as consumers from emerging market countries look for premium drinks,
It's a vice industry,

Large companies can go bust but conditions are favourable to most right now

Foreign earnings is always a good hedge in a company

Vice is a four letter word

the Company increased its ownership interest in London Group, the joint venture that owns NUVO, making Diageo the majority partner with a stake of approximately 70%

Thats sparkling Vodka. Looks like a wussy girly drink to me but sounds like nice research to do anyway

Yield is 3, not so bad. Cover could be better but ok

Dividend Cover 1.72

Chart wise the march low was obviously good. That was the 40 week average and you can see it marked many of highest weekly prices in 2010 and 2007 so was a major point to fell back on

The longterm chart is maybe one of the best Ive ever seen in the FTSE. I reckon everything will be shaken at one point so never go all in but it all sounds good maybe similar dynamic to the tobacco stocks.
However asian guys just cant drink as much as westerners so they will have to be clever

I dont often buy these premium type stocks but the div is ok. A reasonable Target buy I think is 1150, right now its at an obvious top so does its profit growth justify it rising without question

mr_fishbulb

Thanks everyone. Makes me feel more confident about taking the plunge.

sabretoothtigger wrote: »

Vice is a four letter word

Yes - g-o-o-d