13 Best Foreign Dividend Stocks To Buy According to Analysts

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6. Diageo plc (NYSE:DEO)

Dividend Yield as of February 12: 3.54%

Number of Hedge Fund Holders: 26

Average Upside Potential: 25.75%

Diageo plc (NYSE:DEO) is an alcoholic beverage company that manufactures, markets and sells whisky, vodka, rum, gin, tequila, liqueurs, and flavored malt beverages. The company is taking a hard look at its portfolio as CEO Debra Crew tries to get the company back on track after a tough stretch. The beverage giant is reportedly considering spinning off or selling Guinness, which could be worth over $10 billion and might also reassess its 34% stake in Moet Hennessy, its Champagne and Cognac partnership with LVMH.

Diageo plc (NYSE:DEO)’s free cash flow rose by $125 million to $1.7 billion, driven by improved working capital management. DEO maintained its half-year dividend at $0.405 per share, reflecting a cautious stance amid market uncertainties. While the company withdrew its medium-term organic sales growth target of 5–7%, Diageo North America is investing $415 million in a 360,000-square-foot manufacturing and warehousing facility in Montgomery, Alabama, to enhance production capacity and supply chain efficiency. The facility is expected to be fully operational by late 2025.

According to Insider Monkey’s third-quarter database, 26 hedge funds were long Diageo plc (NYSE:DEO), compared to 31 funds in the last quarter. William B. Gray’s Orbis Investment Management was the biggest stakeholder in the company, with around 2 million shares valued at $278 million.

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