Smirnoff, Jonnie Walker, Guiness, Baileys, Captain Morgan, Cuervo, have you heard of any of these liquors? All of these are owned by Diageo, stock ticker DEO, and they continue to sell even during our current depression. An article from Smart Money states that “Diageo’s balance sheet, paradoxically, can become stronger the longer some of its products sit in the warehouse. That’s because while the products of most companies lose value the longer they remain unsold, more than a quarter of Diageo’s revenues come from some form of whiskey, which often commands higher prices as it gets older.” How many companies do you know have inventory that makes more money the longer it sits? This company can sell during good times and bad because everyone around the world drinks. The president is even shifting advertising to the more ‘moderately’ priced alcohol because of the economic slowdown. Sounds like they have all corners covered.
With a dividend yield of 6.10% at the current price of $52.08, this looks to be a great bargain. Even if the prices drop furthur and the economy goes down, you will get a much better yield from this then the bank. You might as well drink some of those woes away while waiting also, and you can with the dividend. Maybe your drink is some delicious Bailey’s on the rocks, or you like to mix it up with Bailey’s and Guiness, whatever your preference, you will be living up to drinks that continue to sell in bars, liquor stores, markets, etc.
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