Down 55%, is now the time to buy Diageo shares for my ISA?

Down 55%, Is Now the Time to Buy Diageo Shares for My ISA?

Diageo shares (LSE:DGE) have plummeted to a 10-year low, dropping over 50% since early 2022. This decline contrasts sharply with the FTSE 100 index, which has risen around 30% in the same period. Investors could have earned better returns by choosing other FTSE 100 stocks.

Speaking from personal experience, I owned Diageo shares in my Stocks and Shares ISA until earlier this year. Since selling, the shares have fallen an additional 27%, making them cheaper and increasing their dividend yield, which now looks more attractive.

Should I Buy Back Diageo Shares?

Diageo controls an impressive portfolio of iconic brands, including Johnnie Walker, Tanqueray, Gordon’s, Smirnoff, Don Julio, Baileys, and the ever-popular Guinness. This strong brand lineup makes the current 55% drop over less than four years puzzling.

"Nobody seems to be sure why exactly sales across the alcohol industry are in the doldrums."

Determining whether this price fall presents a lucrative buying opportunity depends largely on understanding the challenges facing the alcohol sector.

Dividend Yield Appeal

With share prices now significantly lower, Diageo offers a more attractive dividend yield, potentially rewarding investors willing to take the risk.

Personal Reflection

Despite the recent share price fall, the brand strength and dividend might make Diageo worth reconsidering for long-term investors.

Author’s summary: Diageo shares have fallen sharply, contrasting with broader market gains, yet its strong brand portfolio and improved dividend yield may offer a valuable buying opportunity for patient investors.

Fool UK — 2025-11-04