UNLYF - Unilever: 3.4% Dividend Yield And Double-Digit Annualized Return
- Unilever is a global branded consumer goods company, with earnings benefiting from the continuing rise of affluence in Emerging Markets.
- In recent years, sales growth (ex. currency) has been at the low end of its 3-5% target range, with growth mostly reliant on Emerging Markets.
- Operational and financial leverage are strong. EBIT growth is likely to be at least 5%, and EPS growth to be higher, even with 3% sales growth.
- Unilever's valuation is attractive, with its P/E at the bottom of its 2016-19 range, and a solid dividend offering a 3.4% Dividend Yield.
- At 4,420p, our Base Case has a total return of 36% in 3 years, or 11.3% annualized, while our Upside Case has a return of 16.9% annualized.
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Unilever: 3.4% Dividend Yield And Double-Digit Annualized Return