Diageo plc
DEODiageo plc (DEO) is a Consumer Defensive company that currently yields 4.11% — historically undervalued based on 10 years of dividend yield history. The Weiss valuation model places the undervaluation threshold at $81.95 and the overvaluation threshold at $143.01. Diageo plc holds a quality score of 28/100 (Risky), reflecting 3 consecutive years of dividend growth with a 96% 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 1.3% 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
$81.95
Current yield
4.11%
Research checklist
What to clear before buying the yield
Updated Jul 9, 2026
Dividend durability
3YVerify the dividend record before treating yield as durable.
Earnings payout
96%Coverage deserves a closer look in filings.
Cash payout
193%Confirm cash conversion and one-off effects.
Dividend growth
2.6%Lower growth changes the return trade-off.
What changed
What changed since the last update
2026-07-08 → 2026-07-09
Price
-2.4%$82.84 → $80.85
Price fell 2.4% since the prior snapshot.
Why Now?
Diageo plc is trading near its historical undervaluation band.
Current yield 4.1% vs historical max 4.2% (97% of maximum).
3 years of uninterrupted dividends.
Elevated payout ratio of 96%.
What matters now
Read the signal before the headline yield
Valuation is the invitation here: the yield is elevated versus its own history.
The 28/100 quality score says the headline yield needs extra skepticism.
Free cash flow payout is above 100%, so cash coverage is the first risk to unpack.
DEO Dividend Income Projection — DRIP Compounder
Dividend Compounder (DRIP)
Year 1 Income
$421
Year 10 Income
$801
Yield on Cost
8.43%
Total Income
$5,890
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 is historically undervalued. Ready to add it to your portfolio?
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In-depth analysis
→ DEO Dividend Analysis Article