Saturday, April 16, 2016

Unilever Q1 and Dividend Increase

Unilever released its Q1 earnings on 4/14/16.  As part of my process of learning more about the market, I plan to read up on quarterly earnings and dividend increases.  As most of my holdings are for the long term, I understand that the daily fluctuations are not that important.  However, I do see a benefit in reading the quarterly releases that companies report.

I currently only own about 3 shares of UL (invested amount of $150 through Loyal3).  Yet, its somewhat fun to quickly go through a earnings release.  Moreover, the announced a dividend increase.  Although it is a very small increase from .302 to .3201, it represents an increase of 5.99%.  As of today 4/16/2016 its dividend yield stands at 3.54%.

See link for Q1 highlights released by UL.  All of the below is from the UL Investor Relations site.


Key Highlights from Release

  • Underlying sales growth of 4.7% with emerging markets up 8.3% (primarily from volume)
  • Underlying volume growth 2.6% and pricing up 2.0%

Overall Performance

  • Personal Care
    • Deodorants continue to perform

  • Foods
    • Led by cooking products in emerging markets
  • Home Care
    • Driven by high margin segments and new Omo with improved cleaning technology
  • Refreshments
    • Ice cream driven by products such as Magnum and Ben & Jerry's
    • Lipton and PG Tips continue to extend presence


See below for a 1 year graph of Unilever.  Its 1 year return stands at 8.7% without including dividends.  It is currently near its 52 week high, but I will continue to buy at my monthly intervals.  With the variety of products they own and their reach around the world, I hope to make this one of my larger holdings as time goes on.  It will take a long time since my investments are only $50 a month, but it certainly will be worth it.  If I ever see a large enough pullback I would be tempted to make a larger order.  The fact that I am thinking like this means I am moving in the right direction.  My former self would have went for a high flying stock and probably sold it on a pullback rather than buying more.  Let's see if I can put that plan into action though.
Google Finance

Dividend Calendar


Attached below are dates related to UL's next few dividend payments.





I look forward to earnings releases next week from PEP, BX, and SBUX.

Full Disclosure: Long UL, PEP, BX, SBUX

What are some strong dividend paying foreign stocks you are invested in such as UL?

Click here to view my portfolio holdings.
You an follow my monthly dividend income here

I'm not an investment professional or a licensed financial advisor. This blog represents my personal views and decisions, which may not be appropriate for other investors. Please use common sense or consult with an investment professional before investing your money. I am not responsible for the outcomes of your decisions, nor am I responsible for the comments posted by readers or the contents of any linked websites. This blog should viewed for educational or entertainment purposes only.

2 comments:

  1. I regret not buying Unilever on the last market dip. It's a great stock with tons of brand names that my family buys; so I assume many others do too. This latest dividend increase is just salt in the wound for me. I'll buy some soon, just waiting for a better entry price.

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    Replies
    1. Investment Hunting,

      Agreed, great company with very recognizable brands. It's definetly fun and exciting investing in brands that everyone you know buys from (even though they might not know it).

      -DM

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