Skip to main content

Why I Love Unilever




Why I Love Unilever.
Ticker: £ULVR

I love companies with big brand portfolios and the know how to manage their brands effectively. Unilever Owns over 29 active global brands and more interestingly over 169 active independent brands around the world.These brands are spread across different divisions including home care, food and refreshments and lastly beauty and personal care.

The Company

Unilever is a holdings company with many acquisition under its belt, it buys manages and sells brands around many different sectors, within many different industries over many different countries, this naturally gives it a layer of protection during hard times effecting individual industries or countries. If a portion of Unilever's portfolio falls, it can always re-balance and strengthen its other brands while making strategic decisions on what to do with the under performers. We can see this happening now with Unilever spinning off some of its Tea brands as a separate entity in order to push its own portfolio towards the younger generation.

Here we can see just a few of the brands Unilever has under its management.


In just this small snapshot containing 12 of its 169 active brands we can see a diversity over tea, food, snacks, body spray and cleaning products.

The Dividend

Unilever has been growing its cash flow consistently for many years alongside its dividend. In 2014 Unilever had a free cash flow value of  €3608b, this has now grown to €7855b within 6 years. The company currently pays out around 73% of its earnings as a dividend. This is a considerable amount but considering Unilever is a mature company with solid brands that is continuing to grow and innovate i believe this will change. The company is continually looking for more opportunities to change, improve and acquire more brands and businesses. Only this year Unilever acquired the Horlicks brand, increasing its drinks portfolio and its opportunity to grow its cash flow to new levels.

Unilever pays out a dividend of 3.32% at the time of writing but has continued to grow its dividend for over 9 years so i expect future payouts to increase as long as Unilever can continue to grow its cash flow as it has done in the past. Given how strong Unilever's portfolio is and the fact it is able to sustain its dividend and remain relatively healthy through the covid crises, I consider the dividend from Unilever stronger when compared to a lot of other businesses.

Conclusion 

Unilever is another top tier foundational stock in my portfolio, i love its ability to withstand hardships and pandemics thanks to its huge diversity in products and businesses across the globe. Its continuing to pay out dividend through the covid crises in a sustainable way and the company is well set to increase its cash flow for future growth.


Labels:

Comments

Post a Comment

Popular posts from this blog

UK ISA Accounts

Isa Accounts In this post i'd like to talk about Isa accounts, Isa accounts are tax free wrappers available in the UK for both investments, savings and peer to peer lending. Any capital gains, dividends or interest generated within an Isa is tax free. What makes Isa accounts unique is the fact that unlike other tax wrapper accounts such as pensions, An Isa allows its owner to withdraw money without penalty. Limitations Isa accounts allow their owners to put up to £20,000 in every year, after reaching the £20,000 limit, no more can be placed into an isa that year until they reset in April. Once the limit has been reset you are free to either place another £20,000 into that same account or open up an Isa somewhere else. Although you can have more than one Isa of the same type if you pay into them on separate years, you can only pay into one Isa of the same type per year. for example if i opened a stocks and shares Isa with one provider, i would still be able to open up a savings acco...
Post a Comment
Read more

Freetrade Review After 4 Years Of Use

  Disclosure : I own shares in Freetrade. Freetrade is a relatively new trading app that started in the UK and has now opened up across Europe, the app essentially allows you to do as the name implies, purchase and sell shares without a commission fee. Of-course there's still a currency conversion when buying stocks in currencies other than your home currency, however compared to many other investment services, this is very cheep when taking into account the cost of buying and selling shares. The Interface Having used Feetrade for almost 4 years now I've found the interface of the app to posses a beautiful and simplified design. When opened you are presented with a clear list presenting all of your positions, the number of shares, and the amount of money those shares represent, as well as the percentage that those positions are in the green or the red. Scrolling down you are presented with a watch list that clearly shows how each ticker you'r watching has done over a month ...
Post a Comment
Read more

Investing in Shares For Dummies

Investing in Shares For Dummies The very basics! Buy Here:  Investing In Shares For Dummies. When i first started doing research into purchasing shares in companies i purchased several books, however one book a friend had purchased for me stuck out above the rest when it came to providing information on all the basic concepts of investing.  Investing in Shares For Dummies sets out not only to give you all the details you need on purchasing shares and what the concept of share ownership means for you and your personal finances, but it also makes an extremely handy reference book to keep coming back to. For instance if you want a quick recap on how interest rates could effect shares and bond prices, they have a chapter for that where they lay it out clearly over several easy to understand pages. The same goes for Analyzing Industries and ways to price companies. There are sections for understanding CFD's and going short on shares, using leverage to buy shares on margin and so on...
Post a Comment
Read more