I had another buy and also sale in this opening month of January, as compared to last whole year, I just posted one article on sale. I bought Unilever Plc (UL) and sold iShares Emerging Mkt (DVYE).
I’ve been eyeing this multinational company UL since a while but finally pulled the trigger this month, with the price being in my buying range. Its a hold for long time to come.
1) Unilever Plc (UL)
Unilever plc is a multinational consumer goods company, co-headquartered in Rotterdam, The Netherlands and London, England, dual-listed there, and has Anglo-Dutch origins in Soap and Margarine. Its products are sold across 190 countries, and grouped into 4 categories: Personal Care, Deodorants and oral care products, foods, weight-management products and nutritionally enhanced staples, powders and liquids, soap bars and other cleaning products. Some of the popular brands include Becel, Flora, Bertolli, Heartbrand, Knorr, Lipton, Rama, Blue Band, Brylcream, Sunlight, Surf, Dove, Lux, Rexona, Lifebuoy, Close up, Sunsilk, Vaseline and Ponds.
UL is trading at P/E ratio of 19.50 which is lower than its close competitor, The Proctor & Gamble Company (PG) at 24.70, dividend yield of 3.36% and a Market Cap of $128.59B. It traded at $45.99 at its 52 week high and currently at $42.51, fairly valued in my opinion.
I bought UL at $41.31 on 1/21/14 and initiated 15 positions in this company. It will add $21.45 of passive income on an annual basis that I do not have to earn and work for.
UL was also a recent buy of Dividend Mantra and few other bloggers.
I wrote last month about the criteria when I sale the securities and one of them was significant reduction of dividends. That’s what happened with DVYE, dividend was slashed mercilessly in this case from $0.76 to $0.05. I do not mind small and temporary reductions in dividends if the fundamentals of the underlying company remains good, however, in this case, it was a hammer blow on dividends.
I sold my 10 positions in DVYE on 1/20 at $41.73 and netting $407.64. These proceeds were used to purchase 15 positions in UL.
Full Disclosure: Long on UL, PG.
Do you think UL is a good buy at these prices? Are you also thinking to add them in your portfolio.
Thanks for reading.