#106 New Company; ULVR

Shopping spree continues. I have £400 left from my unexpected expenses. This feels like I'm just splashing the cash on fun items, but it's certainly better to invest it this way rather than spending on headphones (my other idea) !

I quickly scanned 20~ companies and decided to do a deep-dive on Unilever, ULVR.

Info:
A stock I don't own in a sector (personal goods) I do not own.

It's brands include Dove, Magnum, Lipton, Hellmans.

The largest company on the FTSE100 by Market Cap. About 1/10 the size of Apple.

Sounds like a very defensive company and quarterly dividends sounds aligned to that.

Share price 52-week high is £53.33 per share. 52-Low is recent £40.21. Currently available just under £41.27.

Dividend Record: 

Over 20 years of consecutive dividend growth. Growing at over 5% per annum. Whist the Div Cover dropped below my threshold last year, it was above for the previous four.

Financials:

I don't really know what I'm doing in this area. But lots of reading over the years has led me to focus on a couple of core things.

1. Are Earnings Per Share (EPS) consistently growing? YOY EPS growth 5+ year
1. Grown in 4 of the last 5 years.
2. Are they paying out too much on dividends? Payout Ratio <60%
1. Was lowest in 2019 than for a long time, has in most prevoius years been jsut above 60%, which I wouldn't like. However, it does seem this is fairly normal for a defensive stock.
3. Is the ratio of share price to earnings sufficiently low enough? PE ratio <18
1. On the money, would prefer them to be cheaper, but 18.24 is within acceptable bounds. 
4. Is the Gross and Net Operating profit high enough? Gross 20%> Net 5%>
1. ✅Gross average is above 40%, Net above 16%

Conclusion:

The scale of the company and the position they are in, coupled with the consistency of their dividend track record makes me feel this one is a fairly low risk decision to BUY.

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So ULVR were added to my portfolio, bringing the total up to 5 decent companies.

5 shares were added for a cost including fees of £212.48, an average price per share of £42.50. A yield of 3.84%

This adds £8.15 expected annual dividends to my portfolio, taking the total annual expected dividends too £42.44.

ULVR now represent 20% of my portfolio based on Value and 19% based on income.

I'll receive dividends on a quarterly basis, starting in June.

FYI
I use this website for financial date review; http://financials.morningstar.com/ratios/r.html?t=xlon:ulvr
And this one for the historical dividend date review:  https://www.dividenddata.co.uk/dividend-history.py?epic=ULVR