Diageo plc
DEOConsumer Defensive · Stock · semiannual payer
Forward Yield
3.95%
Annual Dividend
$3.32
Payout Ratio
96%
5-Yr Growth
2.6%
Ex-Date
Apr 17, 2026
Frequency
Semiannual
Summary
As of July 2026, Diageo plc (DEO) yields 3.95% ($3.32 per share annually), with a blended fair-value estimate of $112.10 — +33% upside, so it screens as undervalued. Dividend safety grade: C (52/100).
Is DEO a good dividend stock?
MixedDiageo plc (DEO) pays a semiannual dividend yielding 3.95% ($3.32/yr), with 0 years of growth and a dividend-safety grade of C. The picture is mixed — the dividend pays, but safety or growth signals are weaker than ideal.
Advantages
Risks
- Cut its dividend in 2022
- Elevated payout ratio (96%)
- Share price is down over the past 5 years
Key Data
- Dividend Yield
- 3.95%
- Payout Ratio
- 96%
- Annual Dividend
- $3.32
- 5-Yr Avg Growth
- 2.6%
- Ex-Dividend Date
- Apr 17, 2026
- Years of Growth
- 0
- Frequency
- semiannual
- Beta
- 0.31
- Market Cap
- $47.2B
- P/E Ratio
- 19.4
- 5-Yr Total Return
- -56%
- 52-Week Range
- $72.45 – $116.41
- Dividend Safety
- C · 52/100
- Ever Cut?
- Yes (2022)
Frequently Asked Questions
DEO Price — Last 12 Months
Daily close
Price Return
1 Year
-25%
3 Years
-49%
5 Years
-56%
52-Week Range
$72.45 – $116.41
Price change over each period (excludes dividends). Past performance doesn't guarantee future results.
What is DEO worth?
Undervaluedhigh confidenceOur blended fair-value estimate for Diageo plc is $112.10 per share, versus a market price of $84.00. That implies 33% of upside — a margin of safety of about 25%.
Fair Value
$112.10
Current Price
$84.00
Upside
+33%
Margin of Safety
25%
How we get there
Discounted cash flow
Discounts projected free cash flow back to today.
Dividend discount
Discounts the future dividend stream back to today.
Earnings multiple (Graham)
Graham's earnings-multiple formula, anchored to bond yields.
At today's price, the market is pricing in about -1.1% annual free-cash-flow growth. We model 7.0% — below our estimate, leaving room for upside if the business executes.
Assumptions: 7.0% discount rate (CAPM), 7.0% stage-1 growth, 2.5% terminal growth, $4.33 EPS, $3.32 annual dividend. Updated weekly.
Fair-value estimates are model output for educational purposes only — not investment advice or a price target.
DEO Dividend Safety Score
Borderline
SmarterDividends' proprietary score, backtested against which dividends were actually cut over 15+ years (0.78 AUC). It blends a validated cut-risk model (growth streak, cut history) with current payout, cash-flow and debt. Higher is safer · not investment advice.
Dividend Growth
Total dividends per share by year
Dividend History
| Ex-Date | Pay Date | Amount | Type |
|---|---|---|---|
| Apr 17, 2026 | — | $0.8000 | regular |
| Oct 17, 2025 | — | $2.5190 | regular |
| Feb 28, 2025 | — | $1.6200 | regular |
| Aug 30, 2024 | — | $2.5190 | regular |
| Feb 29, 2024 | — | $1.6200 | regular |
| Aug 24, 2023 | — | $2.5090 | regular |
| Mar 2, 2023 | — | $1.5290 | regular |
| Aug 25, 2022 | — | $2.2780 | regular |
| Feb 24, 2022 | — | $1.5710 | regular |
| Aug 26, 2021 | — | $2.4800 | regular |
| Feb 25, 2021 | — | $1.5350 | regular |
| Aug 13, 2020 | — | $2.2080 | regular |
| Feb 27, 2020 | — | $1.4360 | regular |
| Aug 8, 2019 | — | $2.1210 | regular |
Income Calculator
At $3.32 / yr per share
