Recent Purchase – Unilever (UN)

In addition to my Wells Fargo purchase on Monday, I also placed an order to add to my Unilever position. I had initiated position in Unilever back in October 2014 at $38.06/share. I really like the stock especially for its consistent performance. Since my purchase, the stock increased over 20% to a high of over $46.00. With the choppiness of the last few days, the stock dropped back to below $40 levels and I used this opportunity to add to my position.

I purchased 40 shares of UN at $39.67 on 8/24/2015. With commission, the total cost comes to $1,592.95. With a quarterly dividend of $0.32/share, the yield on cost comes to 3.21% and this purchase adds $51.20 to my forward annual dividends. Of course, this dividend would change due to currency fluctuations.

Between 2005 and 2014, the financials of the company are as follows:

  • Revenue increased from 39,672 Mil to 48,436 Mil which amounts to a 2.24% CAGR
  • Net income increased from 3,502 Mil to 5,515 Mil which amounts to a 5.17% CAGR
  • EPS increased from $1.29/share to $1.82/share which amounts to a 3.90% CAGR

These are not eye-popping numbers, but for a large cap company, the growth rates are stable and reasonable and has been relatively consistent.

Morningstar has a fair value of $47.00 for the stock and it is rated 4 stars.

This purchases increases my total annual projected dividends to $3,037.67.

The portfolio page will be updated soon to reflect this purchase.

Disclosure: Long on all stocks mentioned above

3 thoughts on “Recent Purchase – Unilever (UN)

  1. Another great purchase, DGJ. A very nice company to own in the cons staples indsutry – its perpetually been on my watchlist and I need to add it to my portfolio.
    Congrats on adding to your portfolio


Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s