LONDON -- Diageo (LSE: DGE.L) (NYSE: DEO) posted a small increase in full-year profits but it has hiked its dividend by 8% to 43.5 pence per share. The world's biggest producer of spirits said: "Diageo is a strong business, getting stronger and the results we released this morning show that very clearly."

Chief Executive Paul Walsh added: "We have increased our presence in the faster growing markets of the world, through both acquisitions and strong organic growth."

Those faster-growing markets include Asia-Pacific, which saw an 8% increase in sales, as well as a 19% rise in revenue in Latin America and Caribbean. Its North America market also performed strongly, but Europe, which saw a 1% dip in both sales and volume, fared less well. Andrew Morgan, president of Diageo Europe, said:

The economy remains very uneven in Europe. We continue to deliver substantial sales and profit growth in Europe's emerging countries of Russia, Eastern Europe and Turkey, as well as a good performance across Northern Europe. Clearly though, Southern Europe remains challenging.

Diageo did provide an upbeat guidance for the current year. It said: "Our confidence in the achievement of our medium term guidance is underscored by the 8% recommended increase in our final dividend."

Currently, shares in Diageo -- which rose 0.2% to 1,684 pence -- are valued at 16 times prospective earnings. This looks a tad expensive given that profits are only expected to grow modestly. Meanwhile, the dividend, although adequately covered, is unlikely to get income investors rushing to press the "buy" button.

But if you're keen to earn even greater returns, this free Motley Fool report -- "10 Steps to Making a Million in the Market" -- could help you on your way. The report highlights how choppy markets can still provide the big winners to take you to that magic million.

You can download "10 Steps to Making a Million in the Market" for free right now. But hurry, the report is available for a limited time only.

Further Motley Fool investment opportunities: