Diageo plc (NYSE:DEO) Announces $1.62 Semi-annual Dividend

Diageo plc (NYSE:DEO) announced a semi-annual dividend on Thursday, February 13th,Wall Street Journal reports. Shareholders of record on Friday, February 28th will be given a dividend of 1.62 per share on Thursday, April 24th. This represents a yield of 3.8%. The ex-dividend date is Friday, February 28th.

Diageo has raised its dividend payment by an average of 1.5% per year over the last three years. Diageo has a dividend payout ratio of 72.0% meaning its dividend is sufficiently covered by earnings. Equities research analysts expect Diageo to earn $6.91 per share next year, which means the company should continue to be able to cover its $5.04 annual dividend with an expected future payout ratio of 72.9%.

Diageo Stock Performance

NYSE DEO traded up $2.99 on Thursday, hitting $109.41. 1,439,449 shares of the company were exchanged, compared to its average volume of 1,128,628. The company’s 50 day moving average price is $121.67 and its 200-day moving average price is $126.28. The company has a debt-to-equity ratio of 1.62, a current ratio of 1.60 and a quick ratio of 0.55. Diageo has a twelve month low of $105.72 and a twelve month high of $154.71.

Analyst Ratings Changes

A number of brokerages have recently weighed in on DEO. TD Cowen upped their target price on Diageo from $124.00 to $129.00 and gave the company a “hold” rating in a report on Wednesday, January 8th. UBS Group upgraded Diageo from a “sell” rating to a “buy” rating in a report on Wednesday, December 11th. Finally, Jefferies Financial Group upgraded Diageo from a “hold” rating to a “buy” rating in a report on Thursday, December 5th. One research analyst has rated the stock with a sell rating, two have given a hold rating and four have issued a buy rating to the company. Based on data from MarketBeat, the company currently has an average rating of “Hold” and an average target price of $129.00.

About Diageo

Diageo plc, together with its subsidiaries, engages in the production, marketing, and sale of alcoholic beverages. The company offers scotch, gin, vodka, rum, raki, liqueur, wine, tequila, Chinese white spirits, cachaça, and brandy, as well as beer, including cider and flavored malt beverages. It also provides Chinese, Canadian, Irish, American, and Indian-Made Foreign Liquor whiskies, as well as flavored malt beverages, ready to drink, and non-alcoholic products.