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Share Centre share of the week: Unilever

Joanna Faith
Written By:
Joanna Faith
Posted:
Updated:
13/07/2015

Ian Forrest, investment research analyst at The Share Centre, picks Unilever as share of the week.

“Unilever, the 400-brand consumer goods company, is our top tip for share of the week. While its main brands include Dove, Flora, Ben & Jerry’s and PG Tips, Unilever spans a wide range of other product types. Current consumer spending in the UK is on the rise and looks to be performing healthily, which should support the group’s desire to grow its sales. The company is also looking to improve in emerging markets, so current investors may want to keep an eye on the performance in those areas.

“Investors should appreciate that when looking at the group’s recent track record we can see that it has outperformed the market over the past year. Those more interested in income should also note that the group’s prospective dividend yield of 3.2% is reasonable and expected to rise well ahead of inflation over the next couple of years.

“With sales in North America on the rise and volumes across Europe generally picking up, investors can be encouraged by Unilever’s progress. The group’s large and diverse range of well-known global brands may provide some level of security for its investors. As a result, we are continuing to recommend Unilever as a ‘buy’ for investors wanting to take a lower level of risk, and for those looking to achieve a balanced portfolio.”

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