Unilever (ULVR) & Diageo (DGE): 2 dividend-paying consumer stocks to buy

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HIGHLIGHTS

  • Unilever’s turnover stood at €13.5 billion in Q3 2021. The company recorded an underlying group sales growth of 2.5% during the period.
  • Diageo announced the building of its $75 million distillery in China - the facility would be engaged in the production of the first-ever single-malt whiskey of Chinese origin.

Consumer stocks belong to companies that offer essentials such as food and beverages, hygiene and personal care categories.

The consumer products industry is non-cyclical, and most trends remained unaffected by the healthcare crisis and related restrictions. Most of these companies continued to pay dividends to their shareholders even during the pandemic.

Here is a detailed review of the investment prospect in two FTSE consumer stocks – Unilever and Diageo. FTSE 100 listed Unilever is engaged in food, home care and personal care segments. The demand for these products was relatively unaffected by the pandemic. Diageo, on the other hand, is a beverage company.

(Data source: Refinitiv and company release)

Unilever Plc (LON: ULVR)

Unilever is an international consumer goods company that operates via the hygiene, nutrition and personal care segments. Recently, Unilever partnered with Co-op to roll out two refill packaging store trials.

The group’s turnover stood at €13.5 billion in Q3 2021. The company recorded an underlying group sales growth of 2.5% during the period. The company’s foods & refreshment segment encompassing brands such as Cornetto, Knorr and Hellmann's underlying sales grew by 3.0% in Q3. Its Beauty & Personal Care and home care segment’s underlying sales grew by 2.6% and 1.4%, respectively.

Unilever’s shares are trading at GBX 3,880.50, down by 0.47% at 10:42 AM BST on Monday, 8 November 2021, with a market capitalisation of £100,384.60 million.

For Q3 2021, Unilever announced a dividend of €0.4268 per share.

Diageo Plc (LON: DGE)

Diageo is an international beverage alcohol firm. It operates in more than 180 countries and has production in over 140 sites across the globe. Recently, Diageo announced the building of its $75 million distillery in China - the facility would be used for the production of the first-ever single-malt whiskey of Chinese origin.

Diageo’s shares are trading at GBX 3,775.00, down by 0.09% at 10:42 AM BST on Monday, 8 November 2021, with a market capitalisation of £88,111.34 million.

Diageo recorded a net sale of £12,733 million in 2021 compared to £11,752 million in 2020. The company’s operating profit stood at £3,731 million in 2021 compared to £2,137 million in 2020.

Diageo’s board announced a dividend of 72.55 pence per share in 2021 compared to 69.88 pence per share in 2020.


 

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