Well we the proletarians had to give up. Let’s face it. Who among us is still trying to resist consumer’s society? We do have a new way out… It is a theory of mine which brought me to buy GOL stock a few weeks ago… I will tell you about it soon.

Well anyway we know what power advertising and consumer goods brands have on us and our wives. Here we have a gem perfectly suit for our poor men’s portfolio. Unilever. It is a healthy company. It is growing fast. It owns some of word’s best known brands, like Lipton, Calvè, Slim-Fast, Cif, Dove, Pond’s, Omo, Rexona…

It has a cheap P/E ratio of 15.53% and a juicy Dividend Yield of 3.50%. Forecasts seem, according to our Yahoo finance friends, very good. Earnings are supposed to go up, so P/E should go down 13.74% and, very interestingly, Dividend Yield should go up to 4.50%. I calculated that the pay ratio should be around 40%, which is fine although not as good as Intel.

UL Unilever is growing fast: Qtrly Revenue Growth (yoy) of 11.30% and Qtrly Earnings Growth (yoy) of 36.00%.

UL has some debts, about 15 B$, which is fine compared to Revenues 47.25B. Less than one third of annual sales.
Ok I am convinced. So convinced that I will place a 2000$ order at any price before opening, instead of my usual 1000$ order. Am I crazy today?

6 responses to “UL Unilever: from Findus to Knorr, top brands and juicy dividends”

  1. Jimmy Chi Avatar
    Jimmy Chi

    I agree – fresh growth agenda, new exec team and a ceo who sounds like he knows what he is doing. Buy.

  2. deminvest Avatar

    Thanks for the advice. I did buy:

    NYSE UL USD 42,2499 41,73 2.112,50 2.086,50 -26,00 -1,23%

    Yes, it is like it seems: I bought at 42,2499, so I already lost $26 or 1,23%. But it will recover well. My target is a 30% gain. If I don’t get that 30% I will keep it and enoj the jucy dividends… Do you have some UL in Portfolio too?

  3. Jon West Avatar
    Jon West

    On the Unilever website they do not list LEVER 2000 as one of their brands. Why?

  4. deminvest Avatar

    They don’t list it as one of their main brands, because it is less important compared to other mail international brands.
    They do list as one of their brands on their website in the personal care area:
    http://www.unilever.ca/ourbrands/personalcare/lever2000.asp

  5. Mohamed Avatar
    Mohamed

    I bought a few shares in Unilever last week. Dialled into the Quarter 1 results call early this morning and it all seemed to go OK. Some anaylsts grilling poor Rudy, but I think he handled it well. 🙂

    Turns out the analysts weren’t too happy with the growth and the shares fell 2% – Ouch.

  6. deminvest Avatar

    Well, Earnings and Sales are growing, this will substain our jucy dividends. The company is doing well and we sharholders do no complain. Someday even the analysts will figure that out :-).

    Let the force be with you Mohamed!

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