Unilever Plc Hikes Interim Dividend By 16% To Yield 3.6%

The shares of Unilever (LSE: ULVR) (NYSE: UL.US) were flat at 2,497p during early London trade this morning after the consumer products giant revealed third-quarter results in line with market expectations.

Unilever, famous worldwide for brands such as Sure, Persil and Domestos, had already warned investors of a slowdown in emerging market sales growth last month.

Underlying sales at the consumer goods giant grew by 3.2% worldwide, in between the 3% – 3.5% range Unilever guided for in its unusual September trading update.

Although emerging market sales slowed to 6.2%, volume growth from this region provided the brunt of Unilever’s improvement in overall sales, with developed markets grinding out small revenue gains. The firm’s Personal Care and Home Care divisions — brands like Dove, TRESemmé and Cif — benefited from impressive underlying sales growth of around 6%.

With a market cap of £71bn, Unilever’s shares trade at 19 times expected earnings. After lifting its interim dividend from 19.8p to 22.8p today, Unilever shares also offer a prospective dividend yield of 3.6%.

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> Mark does not own any share mentioned in this article. The Motley Fool has recommended shares of Unilever.