Down 55%: Is Now the Time to Buy Diageo Shares for My ISA?
Diageo shares have fallen to a decade low, losing over half their value since early 2022. Once a reliable performer, the company’s stock decline contrasts sharply with the FTSE 100 index, which has gained around 30% over the same period.
The drop has left investors questioning whether the slump represents a warning sign or a rare buying opportunity. One investor reflected on their experience, noting that they sold their Diageo shares earlier this year, only to see them fall another 27% since then.
“This makes them cheaper and the higher dividend yield far more appealing.”
Global Brand Strength
Despite its poor stock performance, Diageo remains a giant in the beverage industry, owning many of the world’s most recognized alcohol brands.
- Johnnie Walker
- Tanqueray
- Gordon’s
- Smirnoff
- Don Julio
- Baileys
- Guinness
Given such an exceptional portfolio, it may seem surprising that the company’s market value has dropped by 55% in less than four years. Questions linger about why sales across the broader alcohol sector have weakened, leaving the industry in uncertain territory.
Author’s Summary
Diageo’s deep share slump contrasts with its elite brand lineup, leaving investors debating whether its current low price marks a risk or a hidden opportunity for long-term returns.