Down 55%, is now the time to buy Diageo shares for my ISA?
Diageo shares are currently at a 10-year low, appearing very inexpensive with a solid dividend yield. Since early 2022, Diageo (LSE:DGE) shares have dropped by more than 50%. Meanwhile, the FTSE 100 index has risen approximately 30% in the same period, indicating investors could have earned much better returns elsewhere in the FTSE 100.
Speaking from experience, I held Diageo shares in my Stocks and Shares ISA until earlier this year. Since selling, the shares have fallen another 27%, making them even cheaper and the dividend yield more attractive.
Should I buy Diageo shares again?
Diageo owns an impressive range of globally recognized brands:
- Johnnie Walker
- Tanqueray
- Gordon’s
- Smirnoff
- Don Julio
- Baileys
- Guinness
This list is far from exhaustive but highlights the strength of the company’s portfolio. It begs the question: why has the stock fallen 55% in under four years?
"Nobody seems to be sure why exactly sales across the alcohol industry are in the doldrums."
Understanding this uncertainty is crucial to deciding whether this is a lucrative buying opportunity or not.
Author’s summary
Diageo’s sharp share price decline contrasts with its strong brand portfolio, raising a key question about whether now is the moment to reinvest amid uncertain industry sales.
More News
- Commuters hot under the collar as snow, ice gridlock roads across Seoul
- Canada's Air Transat to suspend flights
- No quick fix for ‘tiresome’ M50 gridlock, Minister says
- GRIDLOCK Definition & Meaning
- Another Coup In Africa, Soldiers Appear On State TV To Announce Takeover
- Benin Rejects Claims of a Coup by Opposition Soldiers
- Full steam ahead for good causes at train station's big birthday bash
- Attempted coup d'état in Benin
- Sydney Sixers Vs Adelaide Strikers, WBBL 2025: SYS-W Beat AS-W By One Run Thanks To Ellyse Perry Century
- Benin authorities say coup attempt foiled, President Talon safe