DiageoHAM:GUI +0.27%67 5-Year Yield-on-Cost % is 4.43 as of Jun. 27, 2026, which is 65% above its 10-year median of 2.68. GuruFocus rates HAM:GUI with a GF Score™ of 67/100 and a GF Value™ of €27.88 (Significantly Undervalued). The stock has 5 warning signs investors should review. Among 148 Beverages - Alcoholic companies, Diageo ranks better than 51.35% on this metric.
Diageo's yield on cost for the quarter that ended in Dec. 2025 was 4.43.
The historical rank and industry rank for Diageo's 5-Year Yield-on-Cost % or its related term are showing as below:
HAM:GUI'
s 5-Year Yield-on-Cost % Range Over the Past 10 Years
Min: 1.89 Med: 2.68 Max: 6.03
Current: 4.43
During the past 13 years, Diageo's highest Yield on Cost was 6.03. The lowest was 1.89. And the median was 2.68.
HAM:GUI's 5-Year Yield-on-Cost % is ranked better than 51.35% of 148
companies
in the Beverages - Alcoholic industry
Industry Median: 4.4
vs HAM:GUI: 4.43
Of course the risk here is that the company may not raise its dividends as it did before. The key is to select the companies that can consistently raise its dividends. Usually companies with long history of raising dividends tend to do so.
Diageo 5-Year Yield-on-Cost % Related Terms
HAM:GUI vs BF.B: 5-Year Yield-on-Cost % Comparison
For the Beverages - Wineries & Distilleries subindustry, Diageo's 5-Year Yield-on-Cost %, along with its competitors' market caps and 5-Year Yield-on-Cost % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Diageo 5-Year Yield-on-Cost % vs Beverages - Alcoholic Industry
For the Beverages - Alcoholic industry and Consumer Defensive sector, Diageo's 5-Year Yield-on-Cost % distribution charts can be found below:
* The bar in red indicates where Diageo's 5-Year Yield-on-Cost % falls into.
Dividend Yield % and dividend growth of a stock is an important factor for income investors. But if company A raises its dividend constantly faster than company B, company A's future dividend yield might be much higher than Company B's even if their yields are the same now and their stock prices do not change.
Yield on Cost assumes that you buy and the stock today, and hold it for 5 years. If the company raises it dividends at the same rate as it did over the past 5 years, the dividends investors receive annually in 5 years relative to the stock price today.
Therefore, Yield-on-Cost of Diageo is calculated as
Diageo (HAM:GUI) has a 5-Year Yield-on-Cost % of 4.43 as of Jun. 27, 2026. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on Diageo and its competitors. This is 65% above median its historical median of 2.68. Over the past decade, Diageo's 5-Year Yield-on-Cost % has ranged from 1.89 to 6.03. According to the industry distribution chart, Diageo ranks #72 out of 148 companies in the Beverages - Alcoholic industry, placing it in the top 48.6%.
Is Diageo's 5-Year Yield-on-Cost % too high?
Diageo's current 5-Year Yield-on-Cost % of 4.43 is 65% above median its 10-year median of 2.68. Over the past 10 years, this metric has ranged from a low of 1.89 to a high of 6.03. The Beverages - Alcoholic industry median 5-Year Yield-on-Cost % is 4.40. Diageo's value of 4.43 is 0.7% above this industry median. Based on the distribution chart, Diageo ranks #72 out of 148 companies in the Beverages - Alcoholic industry, which is above the industry midpoint. Overall, Diageo has a GF Score™ of 67/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Diageo's 5-Year Yield-on-Cost % compare to BF.B?
According to the Beverages - Alcoholic industry distribution chart, Diageo ranks #72 out of 148 companies for 5-Year Yield-on-Cost %. This puts Diageo in the upper half of its industry. The industry median 5-Year Yield-on-Cost % is 4.40. Diageo's value of 4.43 is 0.7% above this benchmark. Historically, Diageo's own 5-Year Yield-on-Cost % has ranged from 1.89 to 6.03 over the past decade. While the company's 10-year median is 2.68 vs. the industry median of 4.40, Diageo has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 5-Year Yield-on-Cost % for a Beverages - Alcoholic company?
The median 5-Year Yield-on-Cost % among Beverages - Alcoholic companies is 4.40, based on 148 companies in the industry. Companies in the top quartile (top 25%) have a 5-Year Yield-on-Cost % significantly above this median, while those in the bottom quartile fall well below. However, 5-Year Yield-on-Cost % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Diageo's current 5-Year Yield-on-Cost % of 4.43 is 0.7% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high 5-Year Yield-on-Cost % mean?
A high 5-Year Yield-on-Cost % can signal that a stock is expensive relative to its fundamentals. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on Diageo and its competitors. For the Beverages - Alcoholic industry, the median 5-Year Yield-on-Cost % is 4.40 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Diageo's current 5-Year Yield-on-Cost % is 4.43, which is 65% above median its own 10-year median of 2.68. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Diageo stock overvalued right now?
Based on GuruFocus' analysis, Diageo (HAM:GUI) is currently considered Significantly Undervalued. The stock's GF Value™ is €27.88, compared to a current price of €18.27 — trading 34.5% below its estimated fair value. The current 5-Year Yield-on-Cost % is 4.43, which is 65% above median its 10-year median of 2.68 and 0.7% above the Beverages - Alcoholic industry median of 4.40. Diageo's overall GF Score™ is 67/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 5-Year Yield-on-Cost % calculated?
5-Year Yield-on-Cost % is calculated from a company's financial statements. For Diageo (HAM:GUI), the current 5-Year Yield-on-Cost % is 4.43 as of Jun. 27, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Diageo (HAM:GUI) Overvalued in 2026?
Based on GuruFocus' analysis, Diageo stock appears to be undervalued.
The current stock price of €18.27 is trading 34.5% below its estimated GF Value™ of €27.88.
GuruFocus considers Diageo to be Significantly Undervalued.
Key valuation signals for HAM:GUI:
5-Year Yield-on-Cost %: 4.43 (65% above median its 10-year median of 2.68)
GF Value™: €27.88 vs. price of €18.27 (34.5% below fair value)
Industry Position: 0.7% above the Beverages - Alcoholic median (#72 of 148)
No single metric tells the full story. See the HAM:GUI stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Formed in 1997 through the merger of Grand Metropolitan and Guinness, Diageo is the largest distiller globally by sales. Diageo acquired some of the Seagram assets in 2001, which gave it brands such as Captain Morgan rum and Crown Royal Canadian whisky. Since then, mergers and acquisitions have mostly been bolt-on in nature, plugging gaps in the company's product and geographic portfolio.
67GF Score
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5-Year Yield-on-Cost % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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