It can hardly be argued that the weather in Great Britain is infamous for its unpredictability. The same might be said for our economy, especially in recent years. So what UK-listed stocks might British investors want to seek out during volatility? Diageo What it does: Diageo is one of the world’s leading suppliers of alcoholic drinks, with top brands in the gin, vodka, whisky and stout markets.
By . As I write, currently trading at 2,819.5p, ( ) shares have dived 23.
3% in the last year. Also, they are 12.5% lower over five years.
This has lowered the group’s market value to £62.6bn. However, these figures exclude cash dividends, which Diageo has grown consistently over decades.
Currently, Diageo’s trailing cash yield is 2.9% a year – below the FTSE 100’s 4% yearly dividend yield. But 2024’s interim dividend was 4% above 2023’s, plus analysts expect this growth to continue, as it has done for many years.
Few companies are immune to financial downturns, stock-market crashes and recessions. But history has shown me that financially strong FTSE 100 firms with powerful, established brands (such as Diageo) do better than most. Finally, I view Diageo stock as undervalued today.
Therefore, my wife and I will keep tight hold of our shares for their dividends and potential capital gains! National Grid What it does: National Grid owns and operates the electricity transmission network in England and Wales. By . ( ) is a defensive stock worth considering for tricky times.
.
