Unilever
Power Brands
The group it self started out over 120 years ago with the Sunlight Soap Brand in 1883 created by the founder. Today the group is large and has a sustainable focus to its purpose. Unilever manufacture and supply’s quality products and brands, whilst caring for the planet.
The group have 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 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 revenues stream which in turn generates profits and steady dividends. Inflation headwinds are on the horizon now for all consumer focused companies, however having strong brands and loyal customers returning time again, will quality companies like Unilever a chance of increasing prices. Having the ability to increase prices will help protect margins both top & bottom.
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 payment in the months of March, June, Sept & December
The latest quarterly dividend being Q4 payment of £0.3674p payable on the 07/06/24.
GBP vs Euro currency exchange rates meant that this was a decrease compared to the same quarter in 2023 (£0.3783p)
PE Ratio: 17.89 (07/06/24)
Dividend yield: 3.38% (07/06/24)
Dividend cover: 1.75 (31/12/23)
(Please remember past performance is not a guide to future returns, no dividend is ever guaranteed).
Unilever’s historical dividend payments dating back to December 1999 can be found on the company website under Investor Relations, click here for more details.
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 4.5 years or 18 quarterly payments is £1,228.94
Further dividend analysis can be viewed in the file below:
ULVR
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