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

Unilever plc (LON:ULVR) confirms sales growth in emerging markets has slowed.

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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%.

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

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

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