Should I buy Diageo stock in 2025?

What is Diageo?

How much is the Diageo stock?

The price of Diageo stock is rising this week. As of now, the stock trades at £20.34, showing a 24-hour increase of +0.89% but a weekly decline of -1.13%. Diageo’s market capitalisation stands at £44.80 billion, with an average daily volume of 1.06 million shares over the past three months. The P/E ratio is 15.63, the dividend yield is 3.93%, and the stock’s beta is a relatively low 0.29. With its stable profile and modest volatility, Diageo remains a noteworthy consideration for investors seeking resilience in the Irish market.

Our full analysis of the Diageo stock

Having thoroughly assessed Diageo plc’s latest financial and operational results, alongside the stock’s trajectory over the past three years, we have synthesised diverse streams of analysis – including quantitative metrics, technical factors, competitive benchmarks and market data – using our proprietary screening algorithms. The resulting picture points to a company whose fundamentals and market leadership provide a solid basis for renewed optimism, particularly in the context of the premium beverages sector. So, why might Diageo once again become a strategic entry point into the global consumer defensive space in 2025?

Recent Performance and Market Context

Diageo has experienced a period of pronounced correction over the past 12 months, with its LSE-listed shares retreating to £20.34, representing a decline of 16.58% year-on-year and -8.14% over the last six months. This drawdown has largely reflected broader cyclical pressures on global consumer spending and region-specific headwinds, particularly in emerging markets. Yet, recent performance signals stabilisation: the share price has rallied +0.89% intraday, with the NYSE ADR gaining +1.45%, while trading volumes have remained robust at 1.06 million shares over the prior three months.

Equally notable are Diageo’s recent strategic moves, including the successful completion of a two-part $1.5 billion bond issue, reinforcing its capital flexibility and demonstrating confidence among institutional lenders. The company’s reiteration of full-year FY25 guidance, despite adverse macroeconomic and geopolitical backdrops, underscores operational discipline and management’s clear commitment to delivering incremental value. At the sectoral level, the premium spirits category continues to enjoy secular tailwinds, particularly as international consumers pivot towards quality, heritage, and sustainability across their beverage choices. This global move towards premiumisation and brand authenticity is especially relevant for Diageo’s irreplaceable portfolio, positioning it for above-peer recovery as consumer sentiment improves.

Technical Analysis

A closer look at technical indicators confirms that Diageo is approaching critical inflection levels. The daily Relative Strength Index (RSI) ranges between 35.05 and 56.6 – either neutral or tipping toward buy territory, especially against oversold conditions observed in previous months. The 20-day moving average of £20.20 is closely aligned with the current price, providing supportive momentum, while longer-term moving averages (50, 100, and 200 days) linger just above present trading levels – often a prelude to the kind of bullish reversals favoured by medium-term investors.

While the overall MACD remains moderately negative, this is characteristic of a share retracing from cyclical lows, and suggests that a transition phase is potentially underway. Support is notably strong in the £19.88 - £20.00 band, and the current price action’s proximity to this zone points to an attractive risk-reward positioning for new entrants. Should resistance at £20.68 be breached, a resumption of upward momentum could emerge, catalysed by improving sentiment and potential fundamental catalysts outlined below.

Fundamental Analysis

From a fundamental perspective, Diageo stands out as a clear value proposition in the global consumer defensive universe. Despite adverse conditions, the group delivered $20.21 billion in trailing twelve-month sales, with a resilient net income of $3.6 billion and an industry-leading EBITDA margin sustained above 31%. Last year’s 8.2% operating profit growth outpaced many rivals, with continued (albeit modest) organic net sales growth (+2.9% in latest quarter, +1% for H1 FY25). Forward projections, including a margin expansion to 31.7% in 2025, underscore the scalability of Diageo’s premium business model.

On valuation, a current P/E ratio of 17.00 (NYSE) and 15.63 (LSE) appears undemanding for a consumer staple leader with embedded pricing power, broad global exposure, and a blue-chip portfolio – particularly when compared with historical averages and sector peers. The dividend yield – oscillating around a compelling 3.77–3.93% – provides a robust income stream in a persistently low-yield environment, appealing to long-term defensive investors.

Strategically, Diageo’s brand equity is simply unrivalled: with iconic names such as Johnnie Walker, Smirnoff, Guinness, Don Julio, and Baileys, the company maintains dominant market shares across leading spirits categories. Ongoing innovation – with forays into premiumisation, premium ready-to-drink (RTD) products, and sustainable packaging – further invigorates its brand and growth profile. Geographic diversification, particularly with fresh investment in the US and growth markets, buffers the group from adverse regional cyclicality.

Volume and Liquidity

Liquidity has never been a concern for Diageo. The consistently strong average daily volume of 1.06M shares is a testament to the company’s status as a FTSE 100 constituent and a core global holding. This depth of liquidity ensures tight bid-ask spreads, reliable execution for both retail and institutional investors, and negligible entry/exit friction – a vital consideration for active traders and long-term holders alike.

In terms of float, the broad distribution of shares across many geographies and investor categories enhances trading dynamics, contributing to dynamic but stable valuation. Market confidence in the company’s prospects is further evidenced by the steady inflow of institutional assets, despite the broader sector correction.

Catalysts and Positive Outlook

• Product Innovation and Premiumisation: Diageo’s acceleration in high-margin categories – from emerging-market whiskies to tequila, no/low-alcohol alternatives, and RTDs – is fuelling both volume and margin uplift. Recent launches and brand extensions are already contributing to organic growth and reinforcing higher pricing tiers.
• Strategic US Expansion: Doubling down on North America, Diageo is capturing share in the crucial US market, benefiting from favourable demographic trends and premiumization. Thanks to targeted marketing and new product innovation, the group’s US footprint is expected to power near-term recovery and offset emerging market volatility.
• M&A and Financial Strength: The recent $1.5B bond issuance strengthens the group’s acquisition firepower, with potential for opportunistic deals or further innovation investments. Furthermore, the Fitch A- credit rating with a stable outlook affirms balance sheet resilience, enabling attractive buybacks or special dividends should free cash flow overshoot.
• Sustainability and ESG Leadership: Diageo’s recognised leadership in sustainability initiatives – from water usage and carbon neutrality to diversity in leadership – is attracting a new generation of values-driven investors, while simultaneously reducing operational and regulatory risk.
• Sectoral and Regulatory Tailwinds: With consumer staples generally benefitting from resilient demand, and with increasing policy support for responsible drinking initiatives and export promotion in key markets, Diageo appears structurally well-placed compared to less diversified industry participants.
• Market Sentiment and Targets: Consensus analyst price targets suggest a 30% upside from current levels, with a 1-year target of $124.57 on the NYSE ADR and technical resistance levels aligning with historical breakout patterns.

Investment Strategies

• Short-Term Positioning: Traders seeking a technical rebound could leverage current oversold conditions (confirmed by RSI) and solid support at £20.00, positioning ahead of anticipated catalysts such as the next earnings release or further evidence of sectoral recovery.
• Medium-Term Repositioning: Investors with a 6–12 month horizon can capitalise on the convergence of supportive fundamentals, impending margin improvement, and likely sentiment reversal as Diageo demonstrates resilience versus peers. The 20-day moving average flip may precede a golden cross, historically a bullish technical signal.
• Long-Term Accumulation: For core defensive or income-seeking investors, systematic accumulation at these value levels seems prudent. Diageo offers dependable dividends, a high quality brand portfolio, and structural tailwinds from global premium spirits demand. As cyclical pressures abate and innovation levers drive fresh growth, long-term holders stand to benefit from both capital appreciation and growing income.

Is it the Right Time to Buy Diageo?

Diageo’s essential strengths – a world-class premium brands portfolio, resilient cash generation, active innovation pipeline, compelling dividend story, and the ability to outpace market cycles – all point to renewed long-term potential. Technically, the stock is consolidating at a meaningful low with robust fundamental underpinnings and a host of near-term catalysts ready to reignite momentum.

In light of its combination of valuation normalisation, high and dependable yield, balance sheet flexibility, and growing alignment with consumer and ESG trends, Diageo’s shares currently seem to represent an excellent opportunity for well-informed investors seeking exposure to global consumer defensives. With upside potential clearly defined and strong foundations in place, the stock may well be on the cusp of a new bullish phase as we move into 2025.

For those seriously considering quality additions to their portfolios, Diageo stands out as a timely proposition, offering a powerful blend of stability, growth, and innovation in one of the most attractive corners of the European large cap space.

How to buy Diageo stock in Ireland?

Buying shares in Diageo is now straightforward and secure, thanks to the wide range of regulated online brokers available to Irish investors. You can invest using two main methods: buying Diageo shares outright (spot/cash buying), or trading contracts for difference (CFDs) that allow for more flexible strategies. Both routes can be accessed digitally, with robust account protection and transparent fees. To help you choose, we’ve included a broker comparison further down the page so you can find the one that fits your needs best.

Cash buying

When you buy Diageo shares for cash, you become a direct shareholder and own part of the company. This method is ideal for longer-term investors, who want to collect dividends and benefit from capital appreciation. Most reputable brokers charge a fixed commission per trade—often around €5–€10 per order for Irish clients.

Example

Suppose the current Diageo share price is £20.34 (approximately €23.95). With a €1,000 investment, after an estimated brokerage fee of €5, you can purchase about 41 shares (€995 / €23.95 ≈ 41 shares).

Gain scenario:
If the Diageo share price rises by 10% (to about €26.35), your 41 shares would now be worth roughly €1,080.35.
Result: That’s a €100 gross gain—a 10% return on your initial €1,000 investment (excluding dividend income and tax).

Trading via CFD

CFDs (Contracts for Difference) allow you to speculate on Diageo’s share price movements without owning the actual shares. This approach is well-suited to active traders, since you can benefit from both rising and falling prices, as well as access leverage. The main fees are the spread (the small difference between buying and selling price) and, if you keep your position open overnight, a daily financing cost.

Example

You open a CFD position on Diageo with €1,000 and use 5x leverage, giving you market exposure to €5,000 worth of shares.

Gain scenario:
If the price of Diageo rises by 8%, your position gains 8% × 5 = 40%.
Result: That’s a €400 gain on your original €1,000 margin (not counting spreads or overnight charges).

Final advice

Before you invest, it’s essential to compare the fees, account types, and conditions offered by different brokers—some focus on long-term investing, others on active trading. Your choice between buying shares outright or trading CFDs should reflect your investment objectives and risk profile. You’ll find a detailed broker comparison further down this page to help you make an informed and confident decision.

Our 7 tips for buying Diageo stock

The latest news about Diageo

Diageo reported strong Q3 FY25 results, achieving $4.4B in net sales and positive organic growth. The company’s financial update for the quarter highlighted a 2.9% year-on-year rise in reported net sales and a continuation of organic net sales growth, even against a challenging macroeconomic backdrop. This resilience is especially relevant for Ireland, where Diageo maintains significant operations, including major production facilities and a sizable workforce around Dublin. The sustained growth trajectory reinforces investor confidence in the company’s local and global performance in premium beverages, particularly in a market such as Ireland where brands like Guinness are flagship products.

Diageo reaffirmed its FY25 guidance for organic net sales and operating profit, indicating management’s confidence. Despite broader industry uncertainties, Diageo has reiterated its financial outlook for the remainder of the year, projecting further organic sales and profit improvements. This steady guidance provides stability and a constructive sentiment for Irish investors and the national market, supporting expectations that the company’s established presence and brand portfolio in Ireland will contribute positively to future results.

A recent two-part bond issuance raised $1.5B, enhancing balance sheet flexibility and supporting future investments. This strategic financing move strengthens Diageo’s financial position and facilitates continued investment in both global and Irish innovation initiatives. The additional liquidity may accelerate development projects in Ireland, such as modernizing distillery infrastructure or expanding export-oriented capabilities, thus benefiting the regional economy and underlining the company’s commitment to its Irish operations.

Technical indicators point to neutral or improving sentiment, with short-term buy signals emerging near key support. The 14-day RSI ranging up to 56.6 and the 20-day moving average currently above the share price suggest a possible technical rebound, which aligns with increased interest among investors seeking value in defensive stocks. With Diageo’s shares hovering slightly above technical support (£19.88–£20.00), these signals may attract buyers, especially in Ireland where local market stability and dividend reliability are prioritized.

Analysts maintain a one-year price target with 30% upside, and Diageo retains its A- credit rating with a stable outlook. The consensus price target of $124.57 implies significant appreciation potential from current levels, reflecting enduring confidence in the company’s fundamentals, diversified global and Irish positioning, and strong credit profile. Diageo’s ongoing prominence in Ireland, coupled with stable dividend yields around 3.8% and consistent brand innovation, further solidifies its standing as a constructive investment both locally and internationally.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.