Unilever
Power Brands
Unilever is listed on the London FTSE 100 stock exchange under the ticker (ULVR).
Over 120 years ago the group started out with the Sunlight Soap Brand created by the founder in 1883.
Today the group is a global multinational business that boasts some of the Worlds most recognisable brands.
Unilever also prides itself to have a driven sustainable focus, so it can be seen as a great modern day manufacturer and supplier of quality household brands & personal care products, whilst also caring for the planet.
The group has three main business segments:
- Food
- Health Care
- Cleaning
Here are some of the groups most recognisable food brands we know & love: Marmite, Knorr, Bovril, Hellmans, Colemans, Pot Noodles, Ben & Jerry’s Ice cream, Magnums, Cornetto, Carte Dor, Walls & Vienetta.
Here are some of the groups most recognisable Health care brands we know & use: Alberto Balsam, VO5, TRESemme, Tony & Guy, Vaseline, St Ives, Ponds, Lifebuoy, Simple, Impulse, Sure, Radox, Brylcreem, Lynx, Brut.
Here are some of the groups most recognisable cleaning brands we know & rely upon: Domestos, Cif, Persil, Surf, Comfort.
A quick link to the Groups Brands page can be found by clicking here.
With size comes an impressive €59,604.00 (31/12/2023) Billion turnover and brand power to match. 81% of their brands are in the top two categories in their respective markets. 13 of these brands generate over €1 billion each, every year.
High quality brands create reoccurring revenue streams which in turn generates profits and steady dividends.
With inflation headwinds on the horizon for all consumer focused companies, having a strong portfolio of brands and loyal customers returning time again and time again, will allow quality businesses like Unilever a chance of gradually increasing prices over time.
Having the ability to increase prices helps protect both top & bottom margins, which is an investing theme I like.
The ULVR holding is a core contributor to the portfolios regular income so I also view it as a foundational stock, as I continue to seek out great dividend growth stocks to hold for the long haul.
Unilever average five year share price
The average share price over the past five years (08/2019 to 08/2024) for the Unilever group (ULVR) sites between:
The lowest point of £32.67 on the 08th March 2022.
To the highest of £53.30 on the 3rd September 2022.
Based on my own personal experience looking at a long term hold, I would be looking to purchase additional shares between £33.95 to £38.95 price targets.
The ideal exit strategy is to hold for a 10-15 year period with a targeted sell range between £53.00 to £58.50
Unilever Dividend
Unilever distributes a quarterly dividend with payments usually in the months of March, June, Sept & December.
The latest quarterly dividend being Q2 of £0.3696p payable on the 06/09/24. (€0.4268 Euro)
Currency exchanged rates between the GBP vs Euro meant that this was a decrease compared to the same quarter in 2023 (£0.37p)
Listed below is the last nine years of annual dividends:
2023 £1.4872 (€1.7072)
2022 £1.4757 (€1.7072)
2021 £1.4603 (€1.7072)
2020 £1.4818 (During 2020 dividends were distributed in both Euro’s & Pounds – company structure change)
2019 £1.4276
2018 £1.3530
2017 £1.2558
2016 £1.0903
2015 £0.8849
2014 £0.9020
(Please remember past performance is not a guide to future returns, no dividend is ever guaranteed).
PE Ratio: 22.83 (11/08/24)
Dividend yield: 2.97% (11/08/24)
Dividend cover: 1.75 (31/12/23)
Since adding this equity to the portfolio in early 2020, I have continued to add from a low base increasing the holdings from 108 shares as it is a great defensive stock.
In the final quarter of 2023 I increased the holdings to 300 shares which will remain at this level.
Total income generated from holding the shares for 4+ years or 19 quarterly payments is £1,339.82
Further dividend analysis can be viewed in the file below:
ULVR
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