Just released: our 3 top income-focused stocks to buy before October [PREMIUM PICKS]

Our goal here is to highlight some of our past recommendations that we think are of particular interest today, due to a combination of business performance and potentially attractive share valuation.

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The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

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When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than you put in.

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The content of this article is provided for information purposes only and is not intended to be, nor does it constitute, any form of personal advice. Investments in a currency other than sterling are exposed to currency exchange risk. Currency exchange rates are constantly changing, which may affect the value of the investment in sterling terms. You could lose money in sterling even if the stock price rises in the currency of origin. Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, and may have other tax implications, and may not provide the same, or any, regulatory protection as in the UK.

Premium content from Motley Fool Share Advisor UK

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 6.5% sales growth to £17.1bn in its latest fiscal year, despite weak volume performance, as the company passed through price increases. 
  • New CEO Debra Crew, who replaces the late Sir Ivan Menezes, is expected to continue to take “strategic pricing actions”, reflecting Diageo’s brand strength and its reliance on high-income customers. 
  • Its performance reflects its outstanding portfolio, continued investment in brand-building, and its agile supply chain. 
  • Some 60% of net sales are estimated at being from the premium-plus segment – such as Aviation American Gin and 21Seeds flavoured tequila – potentially providing some resilience to the macroeconomic environment. 
  • The company currently offers a trailing yield of 2.6%. 

“Best Buys Now” Pick #2:

Redacted

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Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

The Motley Fool UK has recommended Diageo Plc. 

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