This week Unilever announced a 12% increase in its quarterly dividend.
The dividend is raised from €0.321 to €0.3585. The dividend pay date is June 7, 2017 to shareholders of record on May 5, 2017 (ex dividend May 3, 2017).
Unilever’s CEO Paul Polman:
“The first quarter shows growth once more ahead of our markets. This reflects our continued investment in both innovations and brand support, and reconfirms the strength of our long-term sustainable compounding growth model.
The change programme ‘Connected for Growth’, which we started implementing in the autumn last year, is clearly bearing fruit and is making Unilever more agile and closer to the local markets, unlocking both further growth and margin.
The actions we are taking keep us on track for another year of underlying sales growth ahead of our markets, in the 3–5% range. We also expect an improvement in underlying operating margin this year of at least 80 basis points and strong cash flow. We are raising the dividend by 12%, reflecting the confidence in our outlook”
The new dividend amount represents an annualized dividend amount of €1.434 per share, up from €1.2804. The dividend yield on current price is 3.07%.
My Vrijheid Fonds consist of 242 shares of Unilever, so in 2017 my passive income will increase by €25.43 (after taxes).
My projected annual total amount from my shares of UNA.AS will be €287.71 after taxes.
Unilever’s ability to maintain and grow its dividend for at least 38 consecutive years is impressive, especially for a European company. The price of Unilever has jumped almost 20% in 3 month. This is not an organic earnings growth but the result of a failed takeover approach from Kraft Heinz. Unilever’s management came with a major strategic response. This response resulted in the 20% gain. One of the actions in this major strategic response is this nice dividend raise.
I love this kind of raises!