Diageo plc
DEODiageo plc (DEO) is a Consumer Defensive company that currently yields 3.51% — trading near fair value 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 38/100 (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
Waiting for a better entry
Needs about 13.3% downside to reach the Weiss buy zone
Undervaluation starts near $82.02, where the annual dividend would imply roughly 4.05% yield. That is 0.54% above today's yield.
Buy-zone price
$82.02
Target yield
4.05%
Research checklist
What to clear before buying the yield
Updated Aug 23, 2026
Dividend durability
3YVerify the dividend record before treating yield as durable.
Earnings payout
107%Coverage deserves a closer look in filings.
Cash payout
43%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
2026-08-22 → 2026-08-23
No major change in signal, yield, price, quality, or payout since the last update.
Why Now?
Diageo plc is trading at a fair valuation relative to its dividend history.
Current yield 3.5% vs historical max 4.2% (83% of maximum).
3 years of uninterrupted dividends.
Elevated payout ratio of 107%.
What matters now
Read the signal before the headline yield
Valuation is neutral here: quality has to do more of the work than entry price.
The 38/100 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
$360
Year 10 Income
$645
Yield on Cost
6.74%
Total Income
$4,874
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
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In-depth analysis
→ DEO Dividend Analysis Article