Unilever -ULVR-

Investing
#1

What are peoples thoughts Unilever right now? I hold it and its a long term hold. Its pretty flat compared to year ago but with lows around 3700p and highs around 4900p. I feel at current 4300-4400 level its a decent buy especially if you of the mindset growth stocks like tech etc could take a hit or go sideways over next year. I feel downside is about 4-5% and upside within next 12 months about 15% growth (reaching around 4900-5000p) plus 3%+ dividend.

Any warning signs other than the obviously lockdowns etc, Unilever products are just so essential that they still do well and will push on even more in reopening.

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#2

I am also invested in ULVR for the long term.

Although it has been sideways this year I agree with your estimates moving forward - They have great exposure in Emerging Markets which will give them a wide moat compared to most of their competititors in the space, they also have huge brand loyalty in these regions too.

I personally consider them a stable & defensive option to hold my ‘Cash Money’ in. I would much rather the 3%+ dividend income and the risk the stock goes up or down a little over pathetic interest rates from the banks.

I will be adding to my position in the weeks to come if it continues to slide :slight_smile:

#3

Been watching Unilever for a bit still not convinced.
Instead went for Legal and General - shown better growth and has a dividend of more than double at 6.34%

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#4

personally really like Unilever at the current price but keep in mind that with Dutch elections coming up in a couple of months the outcome could really influence the share price. This big risk is due to the proposed exit tax of $13 billion on Unilver, and if the party that proposed it makes it into government this could mean very very bad news for Unilever. This has been the main reason the stock has been so depressed since the unification.

On a side note, I really like how they’re expanding the Vegetarian butcher and other more growing parts of their portfolio. Personally think it’s quite a risky stock (which you wouldn’t expect from an established company in their space) but imo the stock has good potential for future growth due to EM exposure (as long as the exit tax doesn’t happen).

#5

personally wouldn’t compare Unilever to Legal and General as they’re in completely different sectors (albeit that both are established companies). Would compare it to Henkel, Nestle, Procter and Gamble, Colgate Palmolive, Heinz etc.

#6

Etypsyno - sorry for confusion, wasn’t comparing, just saying which other well estsblished / covid resistant company I went for instead.

#7

Good point that merger tax had slipped my mind recently, but yes I had factored that in as its a long term hold so will happily buy more if it takes a dive, it may be priced in as you say but if big news on it comes out we could see a (relatively) big move for unilever down which I would gobble up if on sale compared to rest of market.

#8

I am also holding ULVR, I have no intention of selling it at least in the mid-term but I am also reluctant to buy more… so it is a definite hold for me.