We Recently Purchased The Following:
Total Spent: $464.64; added $16.80 in forward dividends.
Unilever PLC (UL)
Purchased 12 shares of UL on 11/18/2016 at $38.72Total Spent: $464.64; added $16.80 in forward dividends.
After seeing some recent buying activity among DGI investors, we decided to do some further research into Unilever PLC (UL) to try and figure out why the price has dropped in recent weeks and also if it is a good long term buy for our family's dividend stocks portfolio.
So from what we found, it appears that after reaching an all time high of $48.97 back in September, UL's stock price has slid a little over 20% down to today's trading at just under $39! So why did this leading consumer goods company experience this recent drop? We believe the price drop is currency related and a slow down that was evident from the 3rd quarter report. Not to mention the fact that consumer staples have simply been on a steady decline since the U.S. election ended.
Here were the main reasons why we bought Unilever PLC (UL) stock:
- The improved dollar strength has made UL more attractive for US investors.
- UL is an international dividend payer that have been paying dividends to investors since 1937.
- UL has increased dividends for last 20 years in a row. If we look at historical data, going as far back as 1996, the company has actually managed to double distributions every nine years on average!
- Due to the recent price decline, the current dividend yield is an attractive 3.59%.
- Although uncommon for a European stock, Unilever pays quarterly dividends!
Company Description
The company is dually listed in the U.K. and the Netherlands. There are two classes of ADRs available for US investors, one for the U.K. listing - Unilever PLC (UL) and the other being Unilever N.V. (UN) in the Netherlands.
From Google Finance:
From Google Finance:
“Unilever PLC is a supplier of food, home and personal care products. The Company's portfolio ranges from nutritionally balanced foods to indulgent ice creams, soaps, shampoos and household care products. The Company operates through four segments: Personal Care, Foods, Home Care and Refreshment. The Personal Care segment includes sales of skin care and hair care products, deodorants and oral care products. The Foods segment includes sales of soups, bouillons, sauces, snacks, mayonnaise, salad dressings, margarines and spreads. The Homecare segment includes sales of home care products, such as powders, liquids and capsules, soap bars and a range of cleaning products. The Refreshment segment includes sales of ice cream and tela-based beverages. The Company has approximately 400 brands found in homes around the world, including Persil, Dove, Knorr, Domestos, Hellmann's, Lipton, Wall's, PG Tips, Ben & Jerry's, Marmite, Magnum and Lynx. The Company operates in over 190 countries.”
With our recent purchase of Unilever PLC (UL), the estimated forward dividends for our family's dividend stocks portfolio grew another $16.80, putting our yearly dividends at approximately $3,387/year (excluding our Edwards Jones account) and $3,772/year (including our Edward Jones account).
We did not previously own Unilever PLC (UL), therefore, the recent buy of UL added yet another dividend paying company to our family's dividend stocks portfolios (WF and EJ Accounts). The total stocks held in our family's dividend stock portfolio is now 59 different dividend paying stocks/ETFs and also 5 companies that either don't pay a dividend our has currently suspended their dividends.
Our family's dividend stocks portfolio may be found
by clicking on the link below:
We also maintain an extensive list of stock analysis
that can be access through the link below:
We also just started a list of Recent Buys by other bloggers
that can be access through the link below:
HERE IS A QUICK FACT SHEET FOR THE STOCK I JUST PURCHASED:
Unilever PLC (UL)
P/E: 22.55
Payout Ratio: 74%
Dividend Yield: 3.59%
20 consecutive years of dividend increases
Last Ex-dividend date: 10/26/2016
Dividend Yield: 3.59%
20 consecutive years of dividend increases
Last Ex-dividend date: 10/26/2016
Next Ex-dividend date: approx. 1/26/2016
Have paid a dividend since: 1937 (79 years)
Pays a dividend 4 times a year
Market Cap: 115.49 Billion
52-week high: $48.97
52-week low: $38.58
Purchased Price: $38.72
Have paid a dividend since: 1937 (79 years)
Pays a dividend 4 times a year
Market Cap: 115.49 Billion
52-week high: $48.97
52-week low: $38.58
Purchased Price: $38.72
What are your thoughts on of recent purchase?
What are you buying?
Nice buy. UL is the name of the day, that's for sure. Seems like everyone is nibbling on this stock these days. Under $40 is a great long term price to buy in. I picked up some last week and the week before and will continue to look at this stock going into next week. Thanks for sharing.
ReplyDeleteUL could very well be my next purchase as well. Thanks for the update.
ReplyDeleteGreat buy! I added 20 shares to my position as well, as I believe it's one of the better valued companies at the moment. I've been sitting on some cash waiting for some good opportunities but decided to nibble at UL.
ReplyDeleteGreetings from Sweden.
ReplyDeleteNice buy, Unilever is one fine company and should have a steadily growing cash flow for decades. Im considering starting to buy it also. It looks quite atractive under $40.
Best regards petrusko
They meet my screen. I will have to take a closer look as well. Thanks,
ReplyDeleteDFG
UL is good stock, but not sure about tax implications, as its not an American comp. Is it best to hold in Traditional or Taxable
ReplyDelete