It can quickly be a yr since I used to be discharged from the hospital. unilever (LSE: ULVR) from a private pension that I invested in myself, however I can not say I missed out on it. I simply observed that the corporate’s inventory went ex-dividend on Thursday (February twenty sixth). Traders contemplating FTSE100 You might be tempted to purchase the inventory forward of the following dividend to safe it. So is it value shopping for in the present day?
On February 12, Unilever introduced an interim dividend of 46.64 euro cents (40.52 pence) per share. Those that bought earlier than the ex-dividend date will obtain their dividend on April tenth. This is not the brightest earnings inventory within the FTSE 100. The present yield is about 3.1%. Nevertheless, administration has a reasonably good observe report of accelerating shareholder dividends over lengthy durations of time.
Aside from the 2009 monetary disaster, Unilever has elevated shareholder dividends yearly this millennium, leaving the dividend unchanged at 170.72 euro cents in 2022 and 2023. It then rose to 175.88 cents in 2024 and 182.48 cents in 2025. The yield is not nice, however the earnings stream appears resilient. Nevertheless, as all the time, there aren’t any ensures.
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FTSE 100 earnings progress shares
Inventory costs are one other matter. As soon as a constant monster performer, he has turn out to be extra erratic lately. The inventory value rose 9% in a single yr and 22% in 5 years. It additionally consists of dividends, which is good, however not very thrilling.
Why did I promote? At the moment, I used to be working at Unilever. “I used to be having a tough time concentrating due to the intensive work concerned.”. The corporate had been making an attempt to sharpen its focus by specializing in 30 “energy manufacturers,” however progress appeared patchy. I additionally puzzled whether or not the excessive price-to-earnings ratio (P/E) of round 24 occasions leaves a lot room for the inventory to rise until gross sales and income speed up meaningfully.
The inventory has belatedly come again to life, rising 12.7% final month. The figures have been introduced within the firm’s full-year outcomes on February 12, the primary time since Unilever spun off its ice cream division.
Underlying gross sales progress in 2025 was 3.5%, in keeping with expectations. Momentum picked up within the fourth quarter, but it surely wasn’t spectacular. Full-year revenue rose 66% to 9.47 billion euros, however this was matched by a 3.79 billion euro acquire from the spin-off of the ice cream enterprise. Revenue from persevering with operations elevated barely by 4.6% to five.68 billion euros. The €1.5 billion share buyback was welcomed.
Barely decrease PER
Unilever’s valuation appears to be like a bit robust in the present day, with a P/E ratio of slightly below 20x. Nonetheless, this prospect would not actually shock me. Unilever expects gross sales progress in 2026 to stay on the decrease finish of its goal vary of 4% to six%, reflecting softening market circumstances. Inflation could also be easing, however cost-of-living pressures stay.
As a defensive inventory, Unilever has positively performed its position in unstable occasions. The corporate nonetheless has a powerful portfolio of on a regular basis manufacturers and has additional minimize prices, saving £670m final yr, whereas rising its concentrate on extra worthwhile rising markets.
Berenberg analysts mentioned final week that the group had accomplished its subsequent transformation. “A less complicated, extra agile, quicker rising, extra worthwhile enterprise”. Nevertheless, they nonetheless downgraded the inventory from “purchase” to “maintain.”
For buyers searching for secure earnings and progress, I feel Unilever is value contemplating. However personally, I feel there are extra thrilling alternatives within the FTSE 100 and I will go for it as an alternative.