Bearish View on Diageo's Growth Prospects and Dividend Value

30 days ago

Speaker

"Let's start by discussing Diago or I how I pronounce it badly. I don't drink so I don't know but the dividend yield is let's say okay now this would be the fair pricing of the company such a company especially because there is no real growth if I look at here it was flattish for the last few years and now given the competition the margins the let's say forcing growth they have also lost net income long-term debt that's something that is also weighing on these companies that are simply trying to let's say create some growth something but perhaps there is a structural issue there and that is that perhaps the management is drinking too much of that whiskey or whatever but brands are a little bit gone."

The speaker expresses a bearish view on Diageo, citing stagnant growth, deteriorating margins, loss of net income, and questionable management practices. The commentary suggests that even with an okay dividend yield, the lack of real growth and underlying structural issues make Diageo unattractive relative to better opportunities that could deliver higher yields.

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