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Reckitt Benckiser (LON: RKT) | Price Forecast, Dividend History and Industry Comparison

Sam Boughedda trader
Updated 27 May 2024

Reckitt Benckiser Group (LSE: RKT) is a consumer goods company with a well-established reputation for high-quality health, hygiene, and home care products. The company, formed in 1999 through a merger between Reckitt & Colman and Benckiser, boasts a diverse brand portfolio, including household names like Dettol, Mucinex, Nurofen, and Vanish.

Reckitt Benckiser Group Shares

Reckitt Benckiser is a major player in the global consumer goods market, with a strong focus on innovation and brand development. They distribute their products in over 200 countries, reaching a vast consumer base. This type of firm is often classified as a ‘defensive stock‘, owing to their ever in demand product range. This page provides up-to-date information on Reckitt Benckiser's share price, including current quotes, historical data, and market analysis. We'll also keep you informed about the latest company news and developments that could impact the stock price.

Reckitt Benckiser Group Share Price Chart


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Reckitt Benckiser Share Price and Dividends

The Reckitt Benckiser share price has had a terrible last month or so (as of April 16, 2024) following disappointing sales and news that it had lost a US legal case alleging its baby formula contributed to the death of a premature child. RKT shares are now trading at their lowest level since 2013, trading around the 4,140p price. 

The company does pay dividends, generally twice per year; whilst the current Reckitt dividend yield stands at 4.6%.

RKT EPS and Revenue Breakdown 2020-2023

Reckitt BenckiserAnnual EPSAnnual Revenue
2020 159.3p£13.99 billion
2021-4.5p£13.23 billion
2022324.7p£14.45 billion
2023228.7p£14.60 billion

Consumer Goods Industry Comparison


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Reckitt Benckiser Share Price Forecast

In January, well before Reckitt Benckiser's legal case in the US, Exane BNP Paribas upgraded Reckitt Benckiser to Neutral from Underperform with a 5,900p price target. The firm adjusted the ratings of stocks in the food space as part of its 2024 outlook. They stated that consumer staples valuations are “looking reasonable,” but operationally, “there is little to enthuse.”

On the other hand, RBC Capital lowered its price target on Reckitt to 5,000p from 7,000p per share but maintained an Outperform rating on the stock in a recent note. The firm said Reckitt is “over-earning, reflecting a historical reluctance to invest in infrastructure.” As a result, they believe it is vulnerable to unforeseen mishaps. RBC feels RKT's new top team “needs to get to grips with this quickly.” 

At the time of writing, analysts still remain mostly bullish on the stock, with nine seeing it as a Buy, seven seeing it as a Hold and one viewing RKT as a Sell. The current average price target is 5,671.88p, representing a significant 

Our View: While Reckitt Benckiser is a well-established company that pays dividends, potential investors need to consider the various headwinds impacting the company as they could continue to impact its stock price in the short to medium term.

Who Should Buy Reckitt Benckiser Shares

As with any investment, there are factors to consider beyond just the company itself. These include your own investing goals and risk tolerance. Here's a breakdown of who might find Reckitt Benckiser shares appealing:

Reckitt Benckiser operates in established consumer goods markets like health and hygiene. These markets offer steady, long-term growth prospects. However, certain headwinds in the short term are influencing the stock's performance. As a result, investors with a multi-year horizon may be better suited to investing in RKT shares. 

Reckitt Benckiser has a history of dividend payments, so its stock may be suited to income-focused investors who prefer regular payouts. 

Reckitt Benckiser owns a portfolio of well-known consumer brands like Dettol, Nurofen, and Durex. If you believe in the long-term strength of these brands and their ability to maintain market share, then the company's shares might be a good fit.

Given the recent headwinds the company has had to face, its stock has experienced significant volatility. If you are considering the stock, make sure you are comfortable with some degree of volatility and focus on the long-term trends.

Nevertheless, the recent share price weakness might present a value opportunity for some investors. However, careful research is needed to determine if the current price reflects the company's true value or if the reasons for the decline still pose a further threat.

Reckitt Benckiser News

Sam is a trader and lead stock market writer at AskTraders. After starting his career in the forex market, Sam now focuses on stocks, specifically consumer staples.