U.S. Markets open in 6 hrs 11 mins

Only 2 Days Left To Unilever NV (AMS:UNA)’s Ex-Dividend Date, Is It Worth Buying?

Micheal Lombardo

If you are interested in cashing in on Unilever NV’s (AMS:UNA) upcoming dividend of €0.39 per share, you only have 2 days left to buy the shares before its ex-dividend date, 02 August 2018, in time for dividends payable on the 05 September 2018.

Is this future income stream a compelling catalyst for dividend investors to think about the stock as an investment today? Let’s take a look at Unilever’s most recent financial data to examine its dividend characteristics in more detail.

Check out our latest analysis for Unilever



Here’s how I find good dividend stocks

Whenever I am looking at a potential dividend stock investment, I always check these five metrics:

  • Is its annual yield among the top 25% of dividend-paying companies?
  • Does it consistently pay out dividends without missing a payment of significantly cutting payout?
  • Has dividend per share risen in the past couple of years?
  • Is is able to pay the current rate of dividends from its earnings?
  • Based on future earnings growth, will it be able to continue to payout dividend at the current rate?

  • ENXTAM:UNA Historical Dividend Yield July 30th 18

    How does Unilever fare?

    Unilever has a trailing twelve-month payout ratio of 68.51%,

    meaning the dividend is sufficiently covered by earnings.

    Going forward, analysts expect UNA’s payout to remain around the same level at 63.94% of its earnings, which leads to a

    dividend yield of around 3.43%.

    In addition to this,

    EPS should increase to €2.35.

    If there’s one type of stock you want to be reliable, it’s dividend stocks and their stable income-generating ability.

    In the case of UNA it has increased its DPS from €0.75 to €1.55 in the past 10 years.

    During this period it has not missed a payment, as one would expect for a company increasing its dividend.

    These are all positive signs of a great, reliable dividend stock.

    In terms of its peers,

    Unilever

    has a

    yield of 3.15%,

    which is high for Personal Products

    stocks but still below the market’s top dividend payers.

    Next Steps:

    With this in mind, I definitely rank Unilever as a strong dividend stock, and makes it worth further research for anyone who likes steady income generation from their portfolio.

    Given that this is purely a dividend analysis,

    I urge potential investors to try and get a good understanding of the underlying business and its fundamentals before deciding on an investment.

    There are

    three

    fundamental

    factors

    you should

    further examine:

  • Future Outlook: What are well-informed industry analysts predicting for UNA’s future growth? Take a look at our free research report of analyst consensus for UNA’s outlook.
  • Valuation: What is UNA worth today? Even if the stock is a cash cow, it’s not worth an infinite price. The intrinsic value infographic in our free research report helps visualize whether UNA is currently mispriced by the market.
  • Other Dividend Rockstars: Are there better dividend payers with stronger fundamentals out there? Check out our free list of these great stocks here.

  • To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

    The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.