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

September 10, 2021 02:43 PM BST | By Nidhi Gupta
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HIGHLIGHTS

  • In September 2021, Diageo announced an investment in Komasa Kanosuke Distillery, a Japan-based ultra-premium whisky manufacturer.  
  • Unilever announced a quarterly dividend payout of €0.4268 per share to shareholders for Q2 2021.
  • Consumer goods companies are considered noncyclical and maintain a consistent growth irrespective of macroeconomic situations.

The consumer goods and products sector primarily consist of businesses engaged in the production and sales of goods that deemed crucial for everyday use. These include food, household goods, beverages, hygiene products, and others that consumers may either be unable or unwilling to remove from their expenses even in cases of financial uncertainty. Consequently, these companies are viewed as noncyclical and maintain stable growth independent of macroeconomic conditions.

(Data source: Company and Refinitiv)

Here we take a detailed look at 2 of the ever-green consumer stocks listed on the FTSE 100 Index.

Diageo Plc (LON: DGE)

Diageo is a leading producer of beer and spirits in the world. The shares of the company traded at GBX 3,506.50, up by 0.56% on 10 September 2021 at 11:47 AM GMT+1.

In September 2021, Diageo announced a minority investment in Komasa Kanosuke Distillery, a Japan-based ultra-premium whisky manufacturer.  

Diageo recorded net sales of £12,733 million for 2021 compared to £11,752 million in 2020. Its operating profit was £3,731 million in 2021 compared to £2,137 million in 2020.

Diageo recommended a total dividend payout of 72.55 pence per share to shareholders compared to 69.88 pence in 2020.

Diageo’s market capitalisation stood at £81,384.58 million, and its shares returned 32.47% in the last one year to shareholders.

Unilever Plc (LON: ULVR)

Unilever is an international consumer goods company based in the UK. The shares of the company traded at GBX 3,970.50, up slightly by 0.13% on 10 September 2021 at 11:15 AM GMT+1, and the market cap stood at £102,769.13 million.

Recently, Unilever awarded a US$3.3 billion contract to WPP to handle media duties of the company across leading markets in the US, the UK, India and China.

Unilever announced a quarterly dividend payout of €0.4268 per share to shareholders for Q2 2021.

For H1 2021, Unilever announced a turnover of €25.8 billion, representing an increase of 0.3% year-on-year. Its free cash flow at the end of H1 2021 was €2.4 billion, compared to €2.9 billion in H1 2020.

Bottomline

Stocks of consumer goods companies present investors with stable returns despite uncertain macroeconomic conditions. Therefore, investors keen on gaining stable and continuous returns should keep an eye on these stocks as they are deemed less risky.


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