On October 3, 2025, Martin Capital Partners, LLC disclosed it sold out its entire position in Diageo (DEO -2.05%), an estimated $3.28 million trade.
What happened
According to a filing with the Securities and Exchange Commission on October 3, 2025, Martin Capital Partners, LLC, sold its entire holding in Diageo (DEO -2.05%), totaling 32,525 shares. The estimated transaction value was $3.28 million based on the average price for the quarter ended September 30, 2025. The firm now reports zero shares held in Diageo as of September 30, 2025.
What else to know
Martin Capital Partners, LLC, fully exited its Diageo stake; the position accounted for 1.3% of 13F assets as of the third quarter of 2025 and now represents 0%.
Top holdings after the filing:
- NASDAQ: AMGN: $8.50 million (3.3% of AUM) as of September 30, 2025
- NASDAQ: CME: $8,413,000 (3.3% of AUM) as of September 30, 2025
- NYSE: CFR: $8.36 million (3.2% of AUM) as of September 30, 2025
- NASDAQ: ASML: $8,286,000 (3.2% of AUM) as of September 30, 2025
- NASDAQ: MSFT: $8.20 million (3.2% of AUM) as of September 30, 2025
As of October 5, 2025, Diageo shares were priced at $96.27, down 30.0% over the past year, lagging the S&P 500 by 47.5 percentage points.
Company overview
| Metric | Value |
|---|---|
| Market Capitalization | $53.49 billion |
| Revenue (TTM) | $20.25 billion |
| Net Income (TTM) | $2.54 billion |
| Dividend Yield | 4.43% |
Company snapshot
Diageo offers a diversified portfolio of alcoholic beverages including whisky, vodka, gin, rum, tequila, liqueurs, beer, and ready-to-drink products under global brands such as Johnnie Walker, Guinness, Smirnoff, and Baileys.
It generates revenue primarily through the production, marketing, and sale of branded spirits and beer across multiple international markets, leveraging a global distribution network.
The company serves a broad customer base spanning North America, Europe, Asia Pacific, Africa, Latin America, and the Caribbean, with products available to both retail and on-premise clients.
Diageo is a leading global producer and marketer of premium alcoholic beverages, operating at scale with a diverse brand portfolio and broad geographic reach.
Foolish take
Martin Capital Partners' move to liquidate its position in the alcoholic beverages juggernaut is a bit of a red flag for Diageo.
While it is far from a death knell for the steady behemoth, Diageo's shares have slid 50% from their all-time high just three years ago.
Over the last decade, the company's sales, net income, and dividend payments have only inched higher by low-single-digit percentages annually, offering minimal compounding potential for investors.
Though Diageo pays a high-yield dividend of 4.4%, its payments used 86% of the free cash flow that the company recorded in 2025. This figure doesn't leave a ton of wiggle room for higher payments in the future -- especially considering Diageo wants to use cash to pay down its hefty net debt balance of $21.5 billion.
With global drinking rates and quantities declining, Diageo will have its work cut out for it as it modifies its portfolio of brands to match consumers' changing tastes.
However, the company now trades at a meager 14 times forward earnings following its decline. Diageo could become an interesting value play if it can turn things around in a better consumer environment, but Martin Capital Partners doesn't appear to want to wait for that to happen.
Glossary
13F reportable assets: Assets that institutional investment managers must disclose quarterly in Securities and Exchange Commission (SEC) Form 13F filings.
Assets under management (AUM): The total market value of investments managed on behalf of clients by a fund or firm.
Dividend yield: The annual dividend payment divided by the stock's current price, shown as a percentage.
Quarter (Q3 2025): Refers to the third three-month period of a company's fiscal year, here July–September 2025.
Stake: The amount of ownership or shares held by an investor or institution in a company.
Position: The amount of a particular security or asset held by an investor or fund.
Filing: An official document submitted to a regulatory authority, often detailing financial or investment activities.
Lagging: Underperforming or trailing behind a benchmark or index in terms of returns or performance.
Distribution network: The system a company uses to deliver products to customers or retailers across various markets.
TTM: The 12-month period ending with the most recent quarterly report.
