Diageo plc
DEODiageo plc (DEO) is a Consumer Defensive company that currently yields 3.88% — historically undervalued based on 10 years of dividend yield history. The Weiss valuation model places the undervaluation threshold at $82.02 and the overvaluation threshold at $143.01. Diageo plc holds a quality score of 33/100 (Risky), reflecting 3 consecutive years of dividend growth with a 107% payout ratio. The 5-year dividend CAGR stands at 2.6%.
DEO Dividend Yield History — Weiss Valuation
Distance to undervalued
In undervalued territory
Price sits 0.0% below the Weiss buy zone ceiling
The current yield already clears the historical undervaluation threshold. The next question is whether the dividend quality and payout profile deserve that higher yield.
Zone ceiling
$82.02
Current yield
3.88%
Research checklist
What to clear before buying the yield
Updated Oct 7, 2026
Dividend durability
3YVerify the dividend record before treating yield as durable.
Earnings payout
107%Coverage deserves a closer look in filings.
Cash payout
72%Free cash flow coverage supports the payment.
Dividend growth
2.6%Lower growth changes the return trade-off.
What changed
What changed since the last update
2026-10-06 → 2026-10-07
Price
+2.0%$83.97 → $85.63
Price rose 2.0% since the prior snapshot.
Why Now?
Diageo plc is trading near its historical undervaluation band.
Current yield 3.9% vs historical max 4.2% (92% of maximum).
3 years of uninterrupted dividends.
Elevated payout ratio of 107%.
What matters now
Read the signal before the headline yield
Valuation is the invitation here: the yield is elevated versus its own history.
The 33/100 quality score says the headline yield needs extra skepticism.
The earnings payout ratio is above 100%, so coverage is the first risk to unpack.
DEO Dividend Income Projection — DRIP Compounder
Dividend Compounder (DRIP)
Year 1 Income
$398
Year 10 Income
$739
Yield on Cost
7.76%
Total Income
$5,493
Assumes dividends reinvested at current price. Simplified model — for illustrative purposes only.
Track actual vs. projected
See what DEO dividends you actually received with Sharesight
Dividend income log · Yield on cost · DRIP cost basis · Tax reports
More research
Full price history & technical analysis
TradingView ↗Fundamentals, valuation & analyst ratings
FinViz ↗Moat rating & analyst fair value
Morningstar ↗Track dividends received & tax reports
Sharesight ↗DEO Dividend Quality Score
Quality Score
Risky
Key Metrics
DEO has an undervalued Weiss signal. Review the risks and current trading costs before acting.
Check eToro terms and availability →DividendVisual may earn a commission if you open an account via this link, at no cost to you. Capital at risk. Not financial advice.
In-depth analysis
→ DEO Dividend Analysis Article