Is Unilever PLC (LON:ULVR) An Attractive Dividend Stock?
Today we'll take a closer look at Unilever PLC (LON:ULVR) from a dividend investor's perspective. Owning a strong business and reinvesting the dividends is widely seen as an attractive way of growing your wealth. Yet sometimes, investors buy a popular dividend stock because of its yield, and then lose money if the company's dividend doesn't live up to expectations. While Unilever's 2.7% dividend yield is not the highest, we think its lengthy payment history is quite interesting. The company also bought back stock during the year, equivalent to approximately 4.5% of the company's market capitalisation at the time. Some simple research can reduce the risk of buying Unilever for its dividend - read on to learn more. Companies (usually) pay dividends out of their earnings. If a company is paying more than it earns, the dividend might have to be cut. As a result, we should always investigate whether a company can afford its dividend, measured as a percentage of a company's net income after tax.