Unilever PLC (UL) hikes dividend by 11%

Unilever’s (NYSE:UL) dividend was increased by 11%.  Its overall yield is 2.93%. The firm started paying a dividend in 1993.

Unilever PLC is one of the largest consumer goods firms in the world. The company sells primarily food, personal care, and home care products.    The foods segmen provides soups,  snacks, mayonnaise,  and margarine. Home care segment offers laundry liquids and capsules, soap, and a multitude of cleaning products. The global firm was founded in 1885 and is headquartered in London. It trades as an ADR on the New York Stock Exchange.

Unilever has maintained a three-year growth rate of dividends of 2.5 percent. Unilever currently ranks 2nd in dividend yield within the large cap consumer good, food major diversified category. The quarterly dividend for the June payment will be $0.3828 versus the prior year rate of $0.3439 per share. Unilever is not a member of our Top 100 Dividend Stocks.  (see below).

The dividend will be paid at the new higher rate on June 7, 2017, to shareholders of record at close of business on May 5, 2017. Unilever PLC is currently priced at $54.55. Listed in the table below are the quarterly dividend payments since 2010.

Date Quarterly Dividend British Pound Quarterly Dividend U.S. Dollar
5/5/2017 30.21p 0.383
2/8/2017 27.68p 0.344
10/26/2016 28.9p 0.355
8/3/2016 26.89p 0.353
4/27/2016 25.56p 0.365
2/3/2016 23.00p 0.33
10/28/2015 22.59p 0.344
8/5/2015 21.10p 0.328
4/22/2015 21.80p 0.319
2/4/2015 21.77p 0.325
11/5/2014 22.52p 0.364
8/6/2014 22.53p 0.384
5/7/2014 23.38p 0.394
2/5/2014 22.22p 0.365
11/6/2013 22.80p 0.368
8/7/2013 23.12p 0.354
5/8/2013 22.91p 0.349
2/6/2013 20.39p 0.324
11/7/2012 19.77p 0.316
8/8/2012 18.92p 0.294
5/9/2012 19.81p 0.32
2/15/2012 18.79p 0.297
11/8/2011 19.24p 0.307
8/10/2011 19.62p 0.319
5/11/2011 19.96p 0.329
2/9/2011 17.75p 0.286
11/9/2010 18.20p 0.292
8/11/2010 17.26p 0.275
5/12/2010 18.03p 0.279
2/10/2010 17.04p 0.272

Analysis of Unilever is based upon our five key criteria for the Top 100 list, which include;

Category Value Score
Dividend Yield 2.93% 192
Dividend Growth (3-7 year avg) 4 443
Forward P/E 21.38 382
S&P Financial Rating A+ 203
Beta 0.95 237
Total Score 1,457
% Yield 3 Year Div. Growth Rate 7 Year Div. Growth Rate SPS 2017 P/S Ratio 10 yr P/S Low 10 yr P/S High 5 yr low Yield % 5 yr max Yield %
2.93% 2.5 5.6 20.05 2.56 1.20 2.56 2.73% 3.91%

Positives;

  • Unilever maintains an investment grade rating of A+.
  • Unilever has paid out a dividend consecutively for the past 13 years.
  • Unilever’s dividend yield is above that of the S&P 500 Index.
  • Unilever maintains a beta of 0.95, lower than the average company.

Negatives;

  • Unilever’s current dividend yield (2.93%) is below its five-year average historical dividend yield.
  • Unilever is trading at the top of its ten-year average price/sales (P/S) ratio.
  • Unilever is trading at a price/earnings ratio over 20.

Latest Data; 

2016 2015 2014 2013 2012
Earnings per Share 1.92 1.88 2.17 2.18 2.04
Annual Dividend 1.4 1.32 1.51 1.39 1.23
Payout Ratio 72.92% 75.21% 69.59% 63.76% 60.29%
Earnings per Share 2017 (projected) 2.05
Dividend 1.49
Payout Ratio 72.68%

Based on the firm’s below average dividend yield and elevated price/sales ratio, Unilever PLC does not qualify as one of our Top 100 Dividend Stocks

Unilever PLC Dividend Yield Chart (Click to enlarge)
ul

Chart Explanation:  Dividend growth stocks may be viewed undervalued when the current yield is above historical readings for the past 5 years.

2 thoughts on “Unilever PLC (UL) hikes dividend by 11%

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