Diageo Raises Dividend by 8%

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:

David Kuo does not own shares in Diageo. Motley Fool newsletter services have recommended buying shares of Diageo. The Motley Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.


Read/Post Comments (0) | Recommend This Article (3)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 1993414, ~/Articles/ArticleHandler.aspx, 10/31/2014 9:50:17 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement