5 UK Dividend Stocks To Buy

4. Diageo plc (NYSE:DEO)

Dividend Yield as of March 29: 2.68%

Number of Hedge Fund Holders: 19

Diageo plc (NYSE:DEO) is a London-based producer of alcoholic beverages that are sold worldwide. The product portfolio of Diageo plc (NYSE:DEO) consists of scotch, whisky, gin, vodka, rum, wine, tequila, beer, and brandy. 

Diageo plc (NYSE:DEO) yields 2.68% as of March 29. The company declared on February 23 a £0.2936 per share interim dividend, an increase of 5% from its prior dividend. The dividend will be distributed on April 12, to shareholders of record on February 25. 

On March 17, JPMorgan analyst Celine Pannuti upgraded Diageo plc (NYSE:DEO) to Overweight from Neutral with an unchanged price target of £4,350. The analyst believes that Diageo plc (NYSE:DEO) is strategically positioned in the United States to outgrow peers with premium pricing and a strong product portfolio.

As per Insider Monkey’s Q4 data, 19 hedge funds were bullish on Diageo plc (NYSE:DEO), up from 18 funds in the earlier quarter. Nicolai Tangen’s Ako Capital held the largest stake in the company, with 1.7 million shares worth $382.6 million. 

Here is what Weitz Investment Management has to say about Diageo plc (NYSE:DEO) in its Q1 2021 investor letter:

“We sold Diageo after twelve years of very profitable ownership. The global spirits company has done a fine job of growing earnings, and the stock has enjoyed an extra boost from substantial, multiple expansions along the way. While the business is in good hands, we think a repeat of our mid-double-digit annualized return experience is far less likely. We simply see better risk/reward profiles in the Fund’s other quality holdings.”