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Diageo Cuts Dividend and Lowers Outlook After Sales Slip, Shares Tumble

A halved payout alongside a weaker outlook jolted income-focused holders.

Overview

  • First-half fiscal 2026 organic sales fell 2.8% after the company had previously expected roughly flat performance for the year.
  • Management reduced full-year guidance and declared an interim dividend of $0.20 per share, down from $0.405 a year earlier.
  • Shares dropped 10.8% for the week, according to S&P Global Market Intelligence, reversing much of the stock’s recent recovery.
  • Reporting cited U.S. market softness as a key pressure point that contributed to the sell-off.
  • Commentator Jim Cramer criticized management’s stance and pointed to factors he says are weighing on demand, including tighter consumer budgets, lower alcohol use among younger buyers, GLP-1 drug effects, and legal cannabis competition.