Dividend increase Unilever

Dividend increase Unilever

At the 23rd of April the board of Unilever decided to increase the quarterly dividend from € 0,3201 to € 0,3585 per quarter. This means an increase of € 0,1536 per share per year which translates to a 12,00% increase. The dividend is paid on June the 7th 2017 to shareholders of record on May the 5th 2017.

 

The Pursuit

Since I have 23 shares this increase means that my yearly dividend for Unilever is now € 32,98. Up from € 29,45 or a € 3,53 increase in yearly dividends. After taxes I will receive € 28,03 per year from the company.

This increase means Unilever currently yields 3,01% and my yield on cost rises to 3,71%.

 

Conclusion

Unilever is one of the few European stocks in my portfolio. It’s a great Dutch dividend stock and I love the average dividend growth of 8%. Even better, the increase of this year is 12%! I’m wondering if the extra large increase has something to do with the rejected Kraft Heinz offer on Unilever this year. After all, the company stated they want to increase shareholder value after they rejected the offer. Whatever the reason, I love this increase! It’s just a pity that the price of the stock rose so much. Just when I wanted to buy more the Kraft offer came, the stock price went up and it didn’t go down anymore, not even after the rejection. At the current valuation it’s a relative expensive stock.

What do you think of the dividend increase? Do you own Unilever? And how do you see the future of Unilever after the recent developments? Don’t hesitate to comment below!

 

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