One of my largest holdings and growing is Diageo plc (DEO), which was one of my 2009 stock picks. At the time I recommended it, I figured that the economy was going to drive everyone to either church pews or bar stools and that rational worked out. Today, in a battered market, folks must be hitting the bottle because Diageo is up when the majority of stocks are down. During the day it touched a new high of $73.63. (Update: Final $72.76)

There are very few stocks that I might say are a must own as a core holding. However, unless you think alcoholic beverages are going out of style, Diageo might be one of them. Trading at a 52-week high and surpassing the market last year and so far this year, too, the metrics are starting to look average. But several things do jump off the page on closer inspection. One is the whopping 46% return on equity and the other is the 3.3% dividend yield.

This morning, Diageo (NYSE: DEO), the world's largest spirits maker, announced that annual profit increased 7%. The company's net sales for the year increased 15% to 9.3 billion pounds thanks to solid performance in its international segments.

Diageo's sales increased during the past few quarters, thanks to investment in major brands like Johnny Walker, Guinness, and Smirnoff. This investment has helped the company weather the global economic downturn better than most of its major rivals.