Diageo plc (ADR) (DEO)

MBLacey (94.81) Submitted: 6/30/07 5:24 PM : Start Price: $73.43 DEO Score: 14.71

DEO is a great pick for income. Alcoholic beverages are relatively business-cycle resistant, and the company has a great stable of brands. The dividend has risen every year for several years, and is still above the average for the S&P, the P/E is still reasonable, the ROE is almost twice that of the rest of the industry. With a dividend of about 3%, the stock has and I believe will continue to return a rate that keeps shareholders well ahead of inflation. This is a stock that lets you sleep at night and makes you money, too.

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