Tuesday, October 7, 2008

Diageo purchase

During the steep 8% sell of of the S&P 500 this past Monday I picked up shares of global branded alcoholic beverage company, Diageo (DEO) at $58.61, where they were off 10%. Diageo is the company behind products like Guinness Stout, Crown Royal Whiskey, Baileys, and Smirnoff Vodka. Mmmm.....

At a 5.4% yield Diageo was hard to pass up. To read a brief post about why I bought the stock now, please visit The DIV-Net and read my regular Wednesday post titled 'Diageo, Happy Hour On The Cheap'.

For more great information on Diageo from The DIV-Net, check out Dividend Growth Investor's post from August 22, titled "Diageo Dividend Analysis". I'll likely talk further about why I like Diageo in future posts on the moneygardener. Diageo now makes up 3% of my portfolio.

3 comments:

Nelson said...

Money Gardener

Being a dividend growth investor, I'm very interested in your opinion on my latest post.

http://nocommunism.blogspot.com/2008/09/pissing-off-fellow-bloggers-dividend.html

Feel free to comment!

MG (moneygardener) said...

Hi Nelson, I enjoyed that post, a little birdie emailed it to me. I can't believe I'm being ripped on by a guy that still lives with his Mom.

You make some good points but I don't believe I fall into your stereotype very well. I don't automatically sell when a company cuts its dividend (I didnt' sell BAC). Also, I don't really pay that much attention to yield when I evaluate a company for purchase. I do feel that one can become overly fixated on some aspects of dividend growth investing to a fault. I feel that my strategy, while based on the frame of dividend growth investing, is much more flexible than how you describe it.

Great read though....

Dividend Growth Investor said...

MG,

Thanks for the link. I am looking at DEO but unfortunately I don't want to leverage my dividend exposure.