By
Brian D. Pacampara
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More Articles
May 3, 2011
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Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, consumer-staples giant Unilever (NYSE: UL ) has earned a coveted five-star ranking.
With that in mind, let's take a closer look at Unilever's business and see what CAPS investors are saying about the stock right now.
Unilever facts
| Headquarters (Founded) |
London (1885) |
| Market Cap |
$91.2 billion |
| Industry |
Packaged foods |
| Trailing-12-Month Revenue |
$65.55 billion |
| Management |
CEO Paul Polman (since 2008)
CFO Jean-Marc Huet (since 2010) |
| Return on Equity (Average, Past 3 Years) |
36.9% |
| Cash/Debt |
$4.24 billion / $14.12 billion |
| Dividend Yield |
4.1% |
| Competitors |
Kraft Foods (NYSE: KFT )
PepsiCo (NYSE: PEP )
Procter & Gamble (NYSE: PG ) |
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 97% of the 804 members who have rated Unilever believe the stock will outperform the S&P 500 going forward. These bulls include XTMFJordan and sctg3761.
Less than two months ago, XTMFJordan tapped Unilever as an attractive income opportunity:
Solid dividend with solid growth in earnings and dividends. Strong exposure to emerging markets. Proven skill in accessing the "fortune at the bottom of the pyramid". Looks good.
Currently, Unilever even trades at a cheapish forward P/E of 12.9. That represents a slight discount to listed rivals like Kraft (13.6), PepsiCo (14.1), and Procter & Gamble (15.1).
CAPS member sctg3761 elaborates on the bull case:
Unilever has a good dividend yield, a reasonable P/E ratio, a diversified and popular stable of products, and global sales distribution. In the era of 0% interest rates, any yield above 2% on a solid, respected corporation is good to me. ... Add dividends to a multinational consumer product corporation in an improving economy, then I see little risk. Especially when the product range includes things like soap and beauty products and food -- things people will buy in bad times, but also things (like ice cream) that might sell better in good times.
What do you think about Unilever, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!
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