Diageo plc (ADR) (DEO)

We'll always spend $ on drinks especially if the economy gets worse. :)

Because i bought it?

Diageo (DEO) is a British company which produces beer, wine, and spirits. Their brands include Guinness, Johnny Walker, Captain Morgan, Gordon's, Tanqueray, Smirnoff, Hennessy, and a variety of particularly fine single malts including Caol Isla, Oban, Talisker, and Lagavulin. At 13 to 14 times trailing earnings, with a fairly consistent revenue stream and a 3.5% dividend yield, it would be an appealing business in any case. The relatively high level of debt is adequately serviced by earnings, while gross margins are in the neighborhood of 60%. But what makes the company so attractive to us at this price is the ability to use US dollars at their current purchasing power to buy future earnings in a variety of world currencies, which increasingly will derive from consumers in emerging markets.

We follow this company on our blog at the Three Dollar Hedge Fund: http://threedollarhedgefund.blogspot.com

Stocks go up, stocks go down, but people will ALWAYS eat, smoke, drink and gamble. Great play on their many great drinking brands.

Love the fundamentals, good P/E

People aren't going to stop drinking.

"Set sail with Captain Morgan"

might i suggest checking out tsgty.pk, and if u havent yet found TAP N BUD

Good defensive Total Return play. Get some additional benefit with a declining dollar.

Agree with below. This global leader will do great in good times and better than most in bad times.

When times are good, we drink ......... unless, of course times turn bad, in which case we drink

Good Yielld. multi should benefit from dollar drop

Diageo Australia marketing director, John Green, said that Diageo is investing $1.5 million into the launch of the Smirnoff Cocktails.

High quality beverage company. Great dividend. Predictable business. DEO should outperform the S&P over many years.

Recession proof products

SOLID stock with a good dividend, and more than a few people will tip back a few with the present economy/job situation.

Even the consumption of alcohol was durtailsed by a sizeable portion of the investing public duing the 2008-2009 superecession. Prio to that time, Diageo was a high flyer for the best of reasons,. It had a well protected ffranchise in a wonderfully profitable business, distributing mind numbing potions to a willing market. It still does, and it will come back to to a high price a lot faster than the averages.

Everyone should have a few stocks like this in their portfolio. Market leader, rock solid balance sheet, secure dividend and future growth.

Good defensive play that should yield decent returns with limited downside.

Great products and solid business