Unilever Share Discussion Threads

[grupo guitarlumber] 08/8/2016 06:07

Why now is the perfect time to buy these 3 super income stocks
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By Peter Stephens - Monday, 8 August, 2016 | More on: AZNSSEULVR

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With interest rates cut to 0.25%, dividends are likely to become increasingly important for vast swathes of investors. It would therefore be of little surprise for higher yielding shares to see their prices increase. Greater demand from investors can lead to a compression in their yields and as such, now could be a great time to buy these three income stocks, not only for their yields, but also for their capital gain potential.
SSE

SSE’s (LSE: SSE) yield of 5.8% is among the highest in the FTSE 100 and dividend growth is very much on the horizon. SSE is forecast to increase dividends per share by 2.3% next year and its goal remains to deliver a rise in shareholder payouts that at least matches inflation over the medium term.

While inflation is near zero, this may not hold a great deal of appeal to investors. But with sterling weakening and likely to weaken further, inflation could rise as import costs increase. In this scenario SSE’s growing dividend could be a major ally.

SSE also offers good value for money. It trades on a price-to-earnings (P/E) ratio of just 13.2, which indicates that there’s upward rerating potential on offer at a time when a number of utility companies have P/E ratios of over 20.
Unilever

Although Unilever’s (LSE: ULVR) yield of 2.9% is lower than the FTSE 100’s yield of 3.6%, it nevertheless has huge potential as an income stock. That’s because its payout ratio stands at around two-thirds of profit, which indicates that there’s scope for Unilever to raise dividends at a faster rate than profit growth over the medium-to-long term. Certainly, it needs to invest heavily in marketing and potentially in acquisitions, but its relative stability and resilient business model mean that a greater proportion of profit could realistically be paid out to its shareholders in the form of dividends.

Furthermore, Unilever has strong growth potential in emerging markets. Around 60% of its sales are generated from the developing world and with 75% of Chinese urban dwellers expected to earn between $9,000 and $34,000 by 2022, the growth potential of consumer goods within the world’s second largest economy is significant. Unilever is well-placed to benefit from this and its dividends could rise rapidly as a result.
AstraZeneca

AstraZeneca’s (LSE: AZN) acquisition strategy is expected to cause its bottom line to move from negative to positive growth over the medium term. This has the potential to positively catalyse a dividend that has been stagnant in the last five years as the company has struggled to come to terms with the loss of patents on key blockbuster drugs.

Still, AstraZeneca yields over 4% right now and this makes it a better income option than the wider index’s yield of 3.6%. And with AstraZeneca’s dividends being covered 1.4 times by profit, they’re sustainable even if profit comes under further pressure over the near term. Plus, with AstraZeneca having a beta of 0.7, its share price should be less volatile than the wider index, which may appeal to income-seeking investors while the FTSE 100’s outlook is uncertain.
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Peter Stephens owns shares of AstraZeneca, SSE, and Unilever. The Motley Fool UK owns shares of and has recommended Unilever. The Motley Fool UK has recommended AstraZeneca. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.

[kingcashbilly] 22/7/2016 09:02

Update from Beaufort

"Unilever delivered strong performance in H1 2016 despite a difficult trading environment with weak global economic growth and geopolitical tensions. The company reported an increase in underlying sales, as it sold more products at higher prices. Unilever's largest segment, Personal Care led the growth, amid increases in volume and prices. Volumes in the Foods business dropped, but Unilever offset it by raising prices. Emerging markets recorded 8.0% underlying sales growth, driven by strong volume growth in Asia and price growth in Latin America. Unilever recorded margin improvement due to its various cost-savings initiatives. During H1 2016, the company undertook steps to shift its product portfolio away from food, which recorded slower sales, to higher-margin personal care products. Earlier this week, Unilever disclosed that it would buy subscription razor company Dollar Shave Club for US$1bn. This would enable Unilever to increase its presence in the expanding market for male grooming products and effectively compete with Procter & Gamble. Given Unilever's fundamentally sound position and the strength of its brands across markets, we remain optimistic about the company's prospects."

[spacecake] 20/7/2016 21:20

Buys loss making dollar share club

[waldron] 19/7/2016 19:04

Unilever NV 1st Half 2016 - Forecast
19/07/2016 12:22pm
Dow Jones News

Unilever (LSE:ULVR)
Intraday Stock Chart

Today : Tuesday 19 July 2016
Click Here for more Unilever Charts.

FRANKFURT--The following is a summary of analysts' forecasts for Unilever NV (UN) 1st half-year results, based on a poll of six analysts conducted by Dow Jones Newswires (figures in million euros, growth in percent and target price in euro, according to IFRS). Earnings figures are scheduled to be released July 21.

===
Underl.Sales
1st half-year Sales growth rate
AVERAGE 26,579 4.2
Prev. Year 26,991 2.9
+/- in % -1.5 --

MEDIAN 26,544 4.4
Maximum 26,945 4.7
Minimum 26,361 3.1
Amount 6 5

Baader-Helvea 26,452 4.7
Deutsche Bank 26,425 4.2
Independent Research 26,945 3.1
Jefferies 26,361 4.5
Morgan Stanley 26,635 4.4
Numis 26,657 --

Target price Rating
AVERAGE 44.25 positive 3
Prev. Quarter 42.20 neutral 2
+/- in % +4.9 negative 0

MEDIAN 44.00
Maximum 47.00
Minimum 42.00
Amount 4

Baader-Helvea 44.00 Buy
Deutsche Bank 44.00 Buy
ING 47.00 Buy
Jefferies 42.00 Hold
Numis -- Hold
===

Year-earlier figures are as reported by the company.

DJG/voi

(END) Dow Jones Newswires

July 19, 2016 08:07 ET (12:07 GMT)

[m_k_hubbert] 06/7/2016 17:57

I've added at intervals over past few days so as not to buy too many at once in case price has a temporary spike (at it did this morning). Sold BT a few days ago at a loss, albeit modest compared with LGEN, and am now totally out of UK domestic-focused stocks. As I nearly always find LGEN rose once I sold it but has steadily fallen since to a fair bit below my selling price; BT is significantly lower than when I bailed out.

Indications are that 2 - 3 years of uncertainty lie ahead while negotiations as to what will replace the single market for the UK proceed. I just can't see UK stocks heavily dependent on the UK economy doing much while major uncertainty persists as individuals and businesses will lack confidence to spend / invest. With returns on cash next to zero I'm simple going to stick with overseas-focused stocks such as ULVR and DGE; assuming share price is flat these stocks should deliver a return of around 10% in dividends over the next 3 years, with dividends well-covered given most of the earnings are overseas.

[nimbo1] 01/7/2016 10:18

if Carlsberg made stocks

[waldron] 30/6/2016 20:09

Broker Forecast - JP Morgan Cazenove issues a broker note on Unilever PLC
By BFN News | 02:10 PM | Thursday 30 June, 2016

Factsheet Unilever PLC Ord 3 1/9P (ULVR)


JP Morgan Cazenove today reaffirms its overweight investment rating on Unilever PLC (LON:ULVR) and raised its price target to 3960p (from 3550p). Story provided by StockMarketWire.com

[m_k_hubbert] 29/6/2016 22:48

C20, held AV myself a few years back but stock took a setback at the time and I got out for around a 20% loss; as usual I was fairly ruthless in that stock wasn't performing as expected and action was needed to ensure I still had 80% of AV funds left to invest elsewhere. In can be hard to realise a loss and tempting to 'hold for recovery' but once the 'sell button' is hit I find one can relax as there's then a floor under the losses; furthermore they can be offset for CGT purposes.

As nearly always happens when I cut a loss stock bounces back (as LGEN did today) but since last Friday I've been uncomfortable holding stocks with significant UK (and to a lesser extent EU) exposure. Stocks in financial sector, leisure, housebuilding etc. will mainly stay off my list until key issues such as UK's relationship with Single Market are resolved. Valuations may look v cheap at present...but they may well get cheaper especially if Eurozone has difficulties - Italian banks for example. Put another way my view is that LGEN is a good company but in a bad place right now.

ULVR has done well this week and today's valuation is approaching the 3500p some brokers had targetted prior to the Referendum. There may well be some broker upgrades if nothing else due to large %age of earnings being overseas. Stocks have done even better if dividends are declared in USD - checkout RDSB's stock performance this week given that UK holders will be on course to receive an 11% dividend hike in sterling terms. Performance of RDSB, ULVR and others now mean I'm actually ahead of valuation last Thursday despite taking a 25% hit on LGEN.

[chairman20] 28/6/2016 16:23

M_K agree with your analysis /strategies
and have been adding old big boring Unilever
myself.

But I took a reverse view and got back into
Aviva as my Insurance sector stock (Have
not held LGEN for over 3 years as don't like
the annuity book). Did not manage to buy at
the bottom by any means and given the exposure
of AV to the EU I may have misread the outlook.

But if you have other views would be interested
to hear. The Av. board btw is one of the most
unproductive (unintelligent, uninformed) on ADVFN
so not posting there.

[m_k_hubbert] 28/6/2016 13:19

This board is v quiet. Have been buying in recent weeks and added more given that majority of earnings are overseas which effectively amounts to a near 10% hike in earnings in sterling terms. Took a nasty loss in LGEN as wanted out of that sector given that there will be many months of uncertainty ahead. Using proceeds to add to stocks with high %age overseas earnings - DGE, RIO, ULVR (already overweight in RDSB). Managed to come thru past week with just a 2% dip in portfolio valuation.

[waldron] 25/4/2016 16:43

YEP maybe just under 3pc

[scottishfield] 25/4/2016 16:34

What's the current yield here folks? around 3% perhaps?

[waldron] 25/4/2016 16:31

LONDON-- Consumer goods company Unilever PLC (ULVR.LN) has priced EUR1.5 billion in bonds on the European Markets Monday, with the proceeds to be used for general corporate purposes.

The bonds comprise EUR300 million of 0% Fixed Rate Notes due April 2020, EUR500 million of 0.5% Fixed Rate Notes due April 2024 and EUR700 million of 1.125% Fixed Rate Notes due April 2028.



-Write to Rory Gallivan at [e-mail]; Twitter: @RoryGallivan



(END) Dow Jones Newswires

April 25, 2016 12:10 ET (16:10 GMT)

[waldron] 20/2/2016 10:01

GOOD LUCK YGOR

[ygor706] 19/2/2016 22:13

Been a holder here for some time but the fact that the share price is trending better against a really poor market background says it all as far as I'm concerned. Having lived through a 147 FTSE in 1974 when the old timers advised me to stick with the quality, I will not easily be persuaded to ditch Unilever..........even at these levels.

[m_k_hubbert] 05/2/2016 12:18

Out last week @3050p as felt upside limited from there but looking to go back in on further weakness. Don't want to be without this stock for long as like the quarterly divis.

[nuttynige] 29/1/2016 17:47

Yeah, it held, looking strong too.

[cutlosses] 27/1/2016 21:33

Good to see this breakthrough £30 today.

See if it holds

May even hit the target price mentioned by Waldron soon.

[waldron] 17/1/2016 16:15

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Broker Forecast - Barclays Capital issues a broker note on Unilever PLC
By BFN News | 11:20 AM | Friday 15 January, 2016

Factsheet Unilever PLC Ord 3 1/9P (ULVR)


Barclays Capital today reaffirms its overweight investment rating on Unilever PLC (LON:ULVR) and raised its price target to 3110p (from 2900p). Story provided by StockMarketWire.com

[grupo guitarlumber] 26/10/2015 13:28

Unilever plc (LON:ULVR)‘s stock had its “outperform221; rating reaffirmed by equities research analysts at RBC Capital in a research note issued on Monday, MarketBeat.Com reports. They presently have a GBX 3,100 ($47.48) target price on the stock. RBC Capital’s price target indicates a potential upside of 5.16% from the company’s current price.