Recent buy – Unilever (UNA)

Bought 12 shares Unilever (UNA.AS) for 49,1€/share. Total cost – 604 EUR. Annual post-tax (-15%) dividend inome – 17,4 EUR. Yield on cost – 2,9% post-tax.

Unilever was on my radar for some time now. Sad I didn’t had the capital when it was at 43-44€ at beginning of the year, but im still ok with Unilever ratios.

First of all its a European company, so dividends will be charged for 15% instead of 30% as for US stocks. Then this is one top3 of EuropeanDGI The Noble 30 list pays quarterly dividends and has done so for past 54 years. If is well known global brand similar to PG. Company pay 0,427€/quarter or 1,7€ annualized making it 3,5% pre-tax yield, better then their main rival PG that currently offers only 2,6%. Current TTM EPS 2,12€ leads to P/E – x23, not cheap, but PG cost x25, payout ratio – 80% on a higher side as well. So why buy this company?

First of all company has great moat with strong brands like Dove shower things, cif and persil cleaning stuff, Danone ice cream and much more less known products. Sales dropped from 52 bn€ to 51bn€ but mainly due to FX changes. Net profit remained unchanged at 6 bn€ level. Balance looks ok with Equity eatio – 26% (17,7/67,7), bit low, but positive equity change lately. NetDebt/EBITDA – x2 (26,8-6,3/10,3) low leading to S&P A+ strong investment grade credit rating. This is high quality global company.

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