Diageo plc (
DEO) engages in producing, distilling, brewing, bottling, packaging, distributing, developing, and marketing spirits, beer, and wine products worldwide. This
international dividend achiever has paid uninterrupted dividends on its common stock since 1988 and increased payments to common shareholders every year since 1998.
Diageo's largest competitors include Brown-Forman (BF-B), Constellation Brands (
STZ) and SAB Miller (
SBMRY).
Over the past decade this
dividend growth stock has delivered an annualized total return of 10.20% to its shareholders.
The company has managed to deliver a 5.50% annual increase in EPS since 2001. Analysts expect Diageo to earn $5.77 per share in 2012 and $6.44 per share in 2013. In comparison Diageo earned $4.84 /share in 2011.
Diageo owns some of the best known brands in spirits, including Smirnoff, Johnnie Walker, Baileys, Guinness, Captain Morgan and Jose Cuervo. I have previously written how strong brands are
good for dividend growth. Diageo has focused exclusively on organic growth in its premium brands, shedding non-core assets over the past decade, and also focusing on achieving sales growth through acquisition of other premium spirits names. Diageo has benefited from strong demand for its premium products worldwide, as evidenced by strong volume growth over the past few years.