Investors are pleased as sales are up and the quarterly dividend gets a boost.
Trading update pushes Unilever (ULVR) close to an all-time high
- Sales rise by 3% with strong performance coming from emerging markets.
- Investors should welcome 6% increase in quarterly dividend.
- We recommend the shares as a ‘buy’ due to a range of factors including company's diverse portfolio of global brands.
This morning’s first quarter trading update has beaten analysts’ expectations and led to a 2.3% rise in the shares pushing them within touching distance of an all-time high. Underlying sales were up by 3.1%, with a good performance coming from emerging markets where sales were up by 5%.
Investors will be pleased with the increase in the quarterly dividend by 6% to €0.4104, but will be hoping the company can boost sales growth in the future; something analysts have been increasingly concerned about.
Our View on Unilever - Buy
We maintain our ‘buy' recommendation for low to medium risk investors seeking a balance of growth and income due to the company's diverse portfolio of global brands, defensive qualities in times of greater economic uncertainty and good growth in emerging markets.
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