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Unilever Shares (LON:ULVR) : Dividend Yield, Price Forecast & Key Data

Sam Boughedda trader
Updated 21 Mar 2024

Multinational consumer goods giant Unilever (LON: ULVR) is a company that consistently garners attention. It is renowned for its diverse portfolio of brands, which include Axe, Ben & Jerry's, Dove, Wall's, Vaseline, Hellman's and many more. 

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In fact, Unilever has a portfolio of more than 400 brands in over 90countries, with 3.4 billion people using its products every day.

Unilever has a primary listing on the London Stock Exchange and a secondary listing on the Euronext Amsterdam.

Unilever, A Brief History

The consumer goods company has a rich history that dates back to the 19th century. The company was founded in 1929 through the merger of the Dutch margarine company Margarine Unie and the British soapmaker Lever Brothers.

Since its inception, Unilever has grown to become one of the largest and most successful consumer goods companies in the world. It has expanded its product portfolio to include food, beverages, cleaning agents, and personal care products, among others. Unilever went public in 1930, listing its shares on both the London Stock Exchange and the Amsterdam Stock Exchange. Unilever is a constituent of the FTSE 100 Index.

Interestingly, 1930 was also the year Procter & Gamble entered the UK market, becoming one of Unilever's largest rivals.

Unilever Share Price & Dividend Yield

After a strong bullish run up until 2019, Unilever shares have struggled to find any real upside momentum since. While that's not ideal, the company does pay dividends and hasn't failed to pay a quarterly dividend since 2009. It also has a solid dividend yield, providing investors with a solid return, even if its share price doesn't make any strong gains. 

Unilever EPS and Revenue Breakdown 2020-2023

UnileverAnnual EPSAnnual Revenue
2020€2.12€50.72 billion
2021€2.32€52.44 billion
2022€2.99€60.07 billion
2023€2.56€59.60 billion

Consumer Goods Industry Comparison

Unilever News

Unilever Price Forecast 

Unilever shares were recently downgraded to Underweight from Equal Weight at Morgan Stanley, with the firm lowering its price target for the stock to $48 from $52. Analysts at the investment bank feel that Unilever's re-rating to a small premium to staples is overdone. This is due to the company's weaker cash conversion and higher emerging market exposure compared to peers.

On the other hand, Unilever was recently raised to Buy from Neutral at Bryan Garnier. The firm lifted its price target for the stock to €56 from €54 per share. They highlighted the company's positive full-year results in a difficult environment. Analysts at the firm believe Unilever's positive catalysts outweigh the risks and see now as a good time to play Unilever's turnaround.

Overall, the consensus among analysts leans to the sell side, with five assigning the stock a Sell rating, four assigning it a Hold rating and two a buy rating. 

Our View: While the stock remains subdued, as a strong dividend name with a solid track record, we feel Unilever is definitely a stock for investors to take a closer look at.

Who Should Buy Unilever Shares

Investors considering purchasing shares of Unilever should take into account several factors to determine if it aligns with their investment objectives and risk tolerance.

When it comes to risk tolerance, Unilever is known for its stability and resilience, making it potentially suitable for investors with a lower to moderate risk tolerance. The company's diverse product portfolio and global operations have historically provided a degree of stability, which may appeal to risk-averse investors seeking stability in their portfolio.

Additionally, investors seeking stable dividends and steady long-term growth might find Unilever to be a suitable addition to their portfolio. Unilever has a strong track record of paying dividends, which may appeal to income-oriented investors.

Long-term investors looking to diversify their portfolio with a well-established multinational consumer goods company may find Unilever shares attractive. The company's strong brand presence and global reach could be appealing to investors seeking exposure to the consumer staples sector.

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.