Why Dividend Investors Count on Diageo (DEO) for Stability and Reliability

Diageo plc (NYSE:DEO) is included among the Top 10 Safest Dividend Stocks in the UK.

Why Dividend Investors Count on Diageo (DEO) for Stability and Reliability

A close-up of bottles of whisky and other alcoholic beverages from a winery.

Diageo plc (NYSE:DEO) is among the best FTSE dividend stocks. The company owns well-known brands such as Johnnie Walker, Tanqueray, Ketel One, Don Julio, and many other premium spirits. It is also the producer of Guinness, the famous Irish stout. With a portfolio of over 200 brands, Diageo sells its products in 180 countries worldwide.

Although Diageo plc (NYSE:DEO)’s offerings cover a wide range of price points, the company has recently concentrated on acquiring and developing premium brands. This strategy allows the company to raise prices more easily, as it does not rely on competing through lower costs, and aligns with the growing consumer preference for higher-quality spirits.

Diageo plc (NYSE:DEO) is a solid dividend payer, having raised its payouts for 25 consecutive years. The company pays an interim dividend of $1.62 per share for a dividend yield of 3.87%, as of July 25.

While we acknowledge the potential of DEO to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than DEO and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None.