Diageo plc (LON: DGE), the FTSE 100 drinks giant behind Guinness, Johnnie Walker and Smirnoff, ended Thursday’s session weaker even as the wider UK market bounced and the group confirmed the sterling value of its 2025 final dividend.
Diageo share price today (20 November 2025)
At the close on 20 November 2025, Diageo shares traded around 1,686.5p on the London Stock Exchange. Data from Hargreaves Lansdown and the Financial Times show the stock down roughly 0.9% on the day, from a previous close of 1,702.0p. [1]
Intraday, the stock:
- Opened: about 1,705p
- Day’s range: roughly 1,680.5p – 1,720.6p
- Volume: just over 0.5 million shares traded by late morning/close, below its average daily volume of around 6.6 million. [2]
On a longer view, Diageo remains under pressure:
- 52‑week range: approximately 1,664p (low, 6 November 2025) – 2,619.5p (high, December 2024). [3]
- One‑year performance: the shares are down about 28% over 12 months, according to FT data. [4]
That leaves the stock trading barely 1–2% above its 52‑week low and more than a third below last year’s peak.
Fresh news today: sterling equivalent of Diageo’s final dividend
The main company-specific news on 20 November 2025 is Diageo’s confirmation of the sterling value of its 2025 final dividend.
In a regulatory announcement and accompanying press release, the group said that, following shareholder approval at the AGM on 6 November, the final dividend of 62.98 US cents per ordinary share will be paid as 47.91 pence per share. This figure is based on an exchange rate of US$1 = £0.76072, determined from forward FX contracts executed over the three working days prior to the announcement. [5]
Key points from today’s dividend update:
- Final dividend (sterling): 47.91p per ordinary share
- Previously declared amount: 62.98 US cents (announced with FY25 results in August) [6]
- Payment date:4 December 2025 for holders of ordinary shares and ADRs [7]
- Ex‑dividend date: mid‑October (FT lists an ex‑div date of 16 October 2025) [8]
Combined with earlier distributions, FT data show Diageo’s annual dividend at roughly 76.1p per share, implying a trailing dividend yield of around 4.5% at today’s 1,686.5p share price. [9] Hargreaves Lansdown’s dashboard shows a similar yield in the mid‑4% range. [10]
Today’s announcement had been flagged in advance in both the FY25 preliminary results and the company’s financial calendar, which indicated that the sterling equivalent would be set based on FX rates achieved in the days before 20 November. [11]
Under the surface: why DGE is still trading near its lows
Although the dividend confirmation is positive for income‑focused investors, it lands against a challenging backdrop for the share price.
1. Recent profit pressure and cost‑cutting
Back in August, Diageo’s FY25 preliminary results showed operating profit down by almost 28% year‑on‑year, prompting the group to lift its cost‑saving target from £500m to £625m. [12]
Coverage of those results highlighted:
- Pressure on margins from weaker volumes in several regions
- Ongoing headwinds in parts of Latin America following earlier inventory build‑ups
- Concerns that changing consumer habits and the cost‑of‑living squeeze are pushing some drinkers towards cheaper alternatives. [13]
Scottish Financial News noted at the time that Diageo’s shares had already fallen by more than a quarter over the year and were back to levels last seen in 2016, underlining how much investor confidence had eroded. [14]
2. Q1 FY26 trading update and forecast cut
On 6 November 2025, Diageo issued a fiscal 2026 Q1 trading statement and simultaneously cut its sales and profit guidance, saying performance had been “unsatisfactory”. [15]
According to Reuters’ summary of the update:
- The company now expects flat or slightly lower sales for FY26, with only low‑ to mid‑single‑digit growth in operating profit.
- Persistent softness in key spirits markets, notably the US and China, continues to weigh on growth.
- Management emphasised the need to accelerate cost savings and portfolio optimisation. [16]
The market reaction was swift. Diageo’s shares fell more than 5% on the day of the update, dropping to levels last seen in 2015 and marking a new 52‑week low around 1,664p. [17]
3. Ongoing concerns about global exposure
Today’s broader news flow adds another angle to Diageo’s risk profile. A Reuters‑based report in India’s Economic Times describes how alcohol industry bodies representing Heineken, Diageo and Pernod Ricard have urged the state of Telangana to settle 29.85bn rupees (about $337m) of overdue payments for supplies to state‑run depots. [18]
While the letter does not quantify Diageo’s individual exposure, it underlines:
- The working‑capital and credit‑risk challenges tied to regulated distribution systems
- Rising regulatory and payment‑delay risks in some high‑growth emerging markets such as India. [19]
Altogether, investors are grappling with a cocktail of slower volume growth, regional issues, and FX and regulatory headwinds, even as the company continues to emphasise its premium brands strategy.
Leadership reset: new CEO Dave Lewis due in 2026
One of the biggest developments for Diageo this month is a change at the top.
On 10 November 2025, Diageo announced that Sir Dave Lewis has been appointed Chief Executive Officer and Executive Director, effective 1 January 2026. [20]
Key details from the appointment:
- Lewis is best known for turning around Tesco, where he was Group CEO from 2014 to 2020. [21]
- Before Tesco, he spent roughly three decades at Unilever, building deep experience in consumer brands and marketing. [22]
- Interim CEO Nik Jhangiani will return to his CFO role after Lewis takes the helm. [23]
Markets initially welcomed the move. Reuters reported that Diageo shares jumped more than 5% on the day of the announcement, while Proactive Investors noted a 7.1% rise to around 1,849p, as investors bet that Lewis’s turnaround track record could be applied to Diageo’s sprawling portfolio. [24]
However, as today’s 1,686.5p closing price shows, that optimism has quickly run into the reality of weaker guidance and ongoing structural challenges.
Valuation snapshot: high yield, but sentiment still fragile
At today’s levels, Diageo presents a mixed picture for investors:
- Dividend yield: around 4.5–4.7%, based on trailing dividends and the current share price. [25]
- Price/earnings ratio: roughly 21–22 times trailing earnings, according to FT data – higher than some beverage peers but well below where Diageo traded a couple of years ago. [26]
- Price vs highs: the shares are down roughly 36% from their 52‑week high near 2,620p. [27]
Fundamental‑focused platforms such as Simply Wall St note that Diageo’s share price has fallen close to 30% year‑to‑date and around 46% over three years, and some valuation models now see the shares trading at a discount to estimated fair value. [28] However, those same analyses flag:
- Slowing alcohol consumption in some developed markets
- Increasing regulatory pressures
- Execution risks around cost‑cutting and portfolio reshaping
— as reasons why the discount may persist if earnings fail to re‑accelerate. [29]
How Diageo traded against the FTSE 100 today
Today’s weak share price performance for Diageo came even as the broader UK market enjoyed a relief rally.
- The FTSE 100 closed around 9,575, up roughly 0.7%, snapping a five‑day losing streak as strong earnings from Nvidia helped calm fears of an “AI bubble” and lifted global equities. [30]
- Against that backdrop, Diageo’s ~0.9% decline means the stock underperformed the index by more than 1.5 percentage points on the day. [31]
For investors watching UK defensives, this underperformance underscores that Diageo is trading more on company‑specific news – guidance cuts, leadership changes and dividend details – than on short‑term macro sentiment alone.
Key dates and themes for Diageo shareholders
Looking ahead from today’s close, the main dates and themes on Diageo watchers’ calendars include:
- 4 December 2025 – Final dividend payment date for the 47.91p per share payout. [32]
- 1 January 2026 – Dave Lewis becomes CEO, completing the leadership transition. [33]
- 25 February 2026 – Interim results for the six months to 31 December 2025, where investors will look for any early signs of stabilisation in volumes and margins under the new leadership. [34]
Strategically, the big questions for 2026 and beyond are likely to be:
- Can Diageo restore growth in core spirits markets such as the US and China?
- How far will Lewis go on portfolio reshaping and cost reduction – and will that put dividends at risk or ultimately support them? [35]
- Will premiumisation continue to pay off, or will consumers trade down more aggressively if economic conditions worsen? [36]
Bottom line
As of 20 November 2025, Diageo’s 1,686.5p share price reflects a company in transition:
- The final dividend has been locked in sterling, offering an attractive income stream.
- The share price, however, remains depressed, close to multi‑year lows after guidance cuts and a sharp de‑rating.
- A new CEO with turnaround credentials arrives in January, raising hopes of a clearer strategy but also questions about how radical any changes to the portfolio, cost base and capital allocation might be.
For investors, Diageo currently combines high yield, blue‑chip brands and heightened execution risk. Whether today’s weakness proves to be another step in a long slide or part of a base‑building phase ahead of a recovery will depend heavily on how quickly the group can turn cautious trading updates into convincing growth numbers.
This article is for information only and does not constitute investment advice. Always do your own research or consult a regulated financial adviser before making investment decisions.
References
1. www.hl.co.uk, 2. www.hl.co.uk, 3. markets.ft.com, 4. markets.ft.com, 5. www.diageo.com, 6. www.investegate.co.uk, 7. www.diageo.com, 8. markets.ft.com, 9. markets.ft.com, 10. www.hl.co.uk, 11. www.investegate.co.uk, 12. www.scottishfinancialnews.com, 13. www.scottishfinancialnews.com, 14. www.scottishfinancialnews.com, 15. www.reuters.com, 16. www.reuters.com, 17. www.reuters.com, 18. m.economictimes.com, 19. m.economictimes.com, 20. www.diageo.com, 21. www.stocktitan.net, 22. www.alphaspread.com, 23. www.stocktitan.net, 24. www.reuters.com, 25. markets.ft.com, 26. markets.ft.com, 27. markets.ft.com, 28. simplywall.st, 29. www.scottishfinancialnews.com, 30. www.ig.com, 31. markets.ft.com, 32. www.diageo.com, 33. www.diageo.com, 34. www.diageo.com, 35. www.reuters.com, 36. www.thespiritsbusiness.com
