You are here: Home - Investing - Experienced Investor - News -

Stock of the week: Unilever

Written by:
Helal Miah, investment research analyst at The Share Centre, picks consumer goods giant Unilever as stock of the week.

Unilever manufactures a wide range of consumer goods, including food, detergents, fragrances, home and personal care products.

Its 400 brands include many well-known favourites such as Dove, Flora, Ben & Jerry’s, Knorr and PG Tips. So why is the company our share tip of the week this week? Well we believe it is a safe and steady option in the current volatile market. It is well managed and it has been improving its performance and reputation. Moreover, the share price has had a good recovery of late, in fact it has outperformed the market over the past year and we think there are good long term growth opportunities for this stock.

For some time Unilever has been trying to grow its sales in the vibrant emerging markets where it believes the expanding middle classes will provide strong demand for its global brands for many years. That desire has been frustrated of late by a slowdown in growth in these regions, but investors should note that there are signs that the situation may now be changing.

In its full year results, Unilever reported turnover up 10% to €53.3bn with sales boosted by the performance of premium ice creams and beauty products towards the end of the year.  The CEO did warn that market conditions for the remainder of 2016 may be volatile, but it is looking to cut €1bn from its costs by 2018.

We upgraded Unilever to a ‘buy’ almost a year ago and we maintain this recommendation for lower risk investors, with a balanced portfolio. This is a company with a diverse portfolio of global brands and a healthy dividend, which is expected to rise well ahead of inflation over the next couple of years.

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Everything you need to know about being furloughed

Few people had heard of ‘furlough’ before March 2020, but the coronavirus pandemic thrust the idea of bein...

The savings accounts paying the most interest

If one of your jobs this month is to get your finances in order, moving your savings to a higher paying deal i...

Coronavirus and your finances: what help can you get in the second lockdown?

News and updates on everything to do with coronavirus and your personal finances.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

Read previous post:
House prices up in March

Not only did average property prices rise in March, but the annual rate of growth also increased