Diageo shares have dropped to a 10-year low, losing more than half their value since early 2022. This decline is striking because, over the same period, the FTSE 100 index rose about 30%, offering investors better returns elsewhere.
The shares are now cheaper with a more attractive dividend yield after falling another 27% since I sold my holdings earlier this year. This raises the question of whether to reinvest in Diageo.
The company owns several world-renowned spirits brands, including:
This impressive lineup makes it puzzling how the shares have tumbled 55% in less than four years.
“Nobody seems to be sure why exactly sales across the alcohol industry are in the doldrums.”### Author’s Summary
Despite a significant share price drop, Diageo’s portfolio of iconic brands and increased dividend yield may present a promising investment opportunity amid current industry uncertainties.
Would you like the summary to be more optimistic or cautious?