(ULVR) £40.31


Loss to date: 5.2% Orig­i­nal en­try point: Buy at £42.53, 2 Novem­ber 2017

OUR LATE 2017 ‘buy’ call on pack­aged con­sumer goods gi­ant Unilever (ULVR) may be slightly in the red, but we’re stick­ing with the high-qual­ity busi­ness.

In a seis­mic de­vel­op­ment, the board at the Per­sil, PG Tips, Mar­mite and Mag­num maker has ca­pit­u­lated to share­holder pres­sure and scrapped its plan to shift Unilever’s head­quar­ters to the Nether­lands.

This means Unilever is go­ing to stay in FTSE 100, al­though the board’s rep­u­ta­tion has ar­guably been dam­aged by the episode.

The blue chip com­pany is a unique as­set, a com­pound­ing star turn of­fer­ing ex­po­sure to emerg­ing mar­kets.

Boast­ing an en­vi­able port­fo­lio of brands, deep en­trench­ment in the sup­ply chains of its re­tail­ers is the source of Unilever’s wide eco­nomic moat and the com­pany has rea­son­ably pre­dictable earn­ings.

Strong cash flows have en­abled Unilever to con­sis­tently grow its div­i­dend in real terms for decades and the share­holder re­ward is be­ing sup­ple­mented by share buy­backs.

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