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Our monthly Ice Best Buys Now are designed to highlight our team’s three favourite, most timely Buys from our growing list of income-focused Ice recommendations, to help Fools build out their portfolios.
“Best Buys Now” Pick #1:
Diageo (LSE:DGE)
- While Diageo was formed in 1997, the history of many of its famous brands stretches back much further. Its six top brands were founded between 1759 and 1974 – showing strong staying power.
- Diageo produced double-digit sales growth to £9.4bn in its first half, reflecting price increases for its sought after brands.
- Its performance reflects its outstanding portfolio, continued investment in brand-building, and its agile supply chain.
- Over the medium term, it expects to grow organic net sales between 5% and 7%, with operating profit in the range of 6% to 9%.
- CEO Sir Ivan Menezes has stepped down after 10-years in the job, being replaced by chief operating officer Debra Crew in June. While change can be unsettling, Crew has strong consumer goods experience at listed blue-chips including PepsiCo and Nestle, and already served on Diageo’s board.
- It has a stable track record of raising dividends for shareholders with a five-year CAGR of 3.9%. It currently offers a trailing yield of 2.3%.
