Diageo increases its 2019 final dividend by 5%

DividendMax Ltd.

Diageo increases its 2019 final dividend by 5%

Diageo have declared their dividend at 68.57p, a 5% percent increase. 

Reported net sales (£12.9 billion) increased 5.8% with organic growth partially offset by acquisitions and disposals. Reported operating profit (£4.0 billion) increased 9.5%, driven by organic growth

All regions contributed to broad based organic net sales growth, up 6.1%, with organic volume up 2.3%

Organic operating profit grew 9.0%, ahead of top line organic growth, driven by improved price/mix

and productivity benefits from everyday cost efficiencies, partially offset by cost inflation and higher marketing investment 

Cash flow continued to be strong, with net cash from operating activities at £3.2 billion, up £164 million and free cash flow at £2.6 billion, up £85 million 

Basic eps of 130.7 pence increased by 7.4%. Pre-exceptional eps grew 10.3% to 130.8 pence, driven by higher operating profit and lower finance charges, which more than offset an increased tax charge as a result of higher profit

On 25 July the Board approved plans for a further return of capital up to £4.5 billion to shareholders for the period F20 to F22.

The final dividend increased 5% bringing the full year dividend to 68.57 pence per share. Dividend Cover set at 1.9x, at the lower end of their target range of 1.8 to 2.2. 

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