As Diageo’s share price dives, is this a once-in-a-decade opportunity?
Diageo‘s (LSE:DGE) share price has fallen a whopping 30% over the last 12 months. It’s also more than halved in value since reaching all-time peaks above £41 a share four years ago. Will the FTSE 100 company ever reclaim its previous status as a blue-chip star?
For investors seeking attractive recovery plays on the cheap, I think the drinks maker’s worth serious consideration. At £16.70 a share, the Guinness maker trades on a forward price-to-earnings (P/E) ratio of 13.3. That’s significantly below the 10-year average of 20.8 times.
Its dividend yield, meanwhile, has charged to 4.8%. That’s above the long-term average of 2.8%, and above the FTSE 100 average too.
Could this be a…
