The fact of the matter is, alcohol sells despite economic downturns or slowdowns. When it comes to safe havens, the gurus of investing always talk about the consumer stocks that will never go away, but alcohol is and has proven once again it is one of the strongest selling consumables on the planet.
DEO has had considerable success internationally, with growth rates of 20% and 16% for profits and revenue respectively. Investors were very satisfied with the quarter and the guidance, sending shares up 4% on the day. The company is by far the world leader in alcohol and this is another chance to snap up shares relatively cheaply. A P/E ratio in the mid to high teens for this industry leader is more than fair, and with a dividend yield approaching 4%, it screams "Buy," especially when considering the strong international and emerging markets push that Diageo is undertaking.