Unilever PLC (UL)

Pays a very generous dividend. Right now consumer staples are really taking it on the chin, and have had it bad since interest rates started moving up in July. This has sold off partly because of BREXIT. In terms of unit sales globally, their sales are actually going up by 1%-2% per year. That is good and means the company is going to be okay. It wouldn’t be a bad idea to start adding this to your portfolio.

(Market Call Minute.) Has held this for a long time and is continuing to Buy it, as they have e-commerce picking up with shaving and diapers.

Outside of North America, 50% of the company’s revenues come from emerging markets and 50% comes from developed markets. Has a very good dividend and has grown its dividend. Feels the dividend is safe. They are getting to a point where they are probably going to do an acquisition. If you hold this for 10 years, you are going to be fine. However, if your time frame is less than that, you definitely get a great dividend, see some downside, but definitely not the kind of upside that potentially could be offered in other segments.

Owns a little bit of this. It has benefited from money pouring into consumer product companies. However, the valuation is starting to get too high. He wouldn’t sell it, but wouldn’t buy any more.

This gives you Ben & Jerry’s ice cream, Lipton tea and personal care products. The stock hasn’t moved a lot this year, up about 2%, but you’re getting growth in the dividend over time, because as free cash flows grow, you are getting almost a 10% increase in the dividend every year. They are going to pick up a lot of emerging market growth, more so in India than they are in China.

Phenomenal global player. Don’t sell. The consumer staples area has been one of the most stable over the last couple of years. The entry point is too high here. They will keep growing, however.

3^rd largest global consumer product company, and 59% of it is in emerging markets. Over the long-term, you have done 3% compound over the last 3-5 years, and 7% compound over the last decade. 2.93% dividend yield.

He looks at global companies that are diversified. UL-N has European exposure, for example. This group is going to do well in a benign commodity environment. 8-10% free cash flow margin gives good stock performance. UL-N is doing better than others in the space.

Diageo (DEO-N) or Unilever (UL-N) foreign income focused investor? Neither of these is cheap today. You are paying a high price for very stable earnings. The difference between the 2 companies is that Diageo has been basically a no growth story in terms of earnings and revenues. Unilever is well positioned globally, especially in emerging markets, and will give you earnings growth along with better dividend growth. If he had to pick one or the other, it would definitely be this one.

Stock vs. Stock. DEO-N vs. UL-N. UL-N has a track record of slow, modest increases in its dividend. Profit growth in emerging markets will not be as strong, but he would buy this and put it away.

Sales have turned out better than expected. This is a big consumer product company. Feels they are realizing that they have to consolidate their products and sell off non-core products.

You own this because they have about 55%-58% emerging market exposure. A global leading consumer products company in food and personal care. It is really a play on the middle class in emerging markets. Underperformed in the last year because emerging markets have had some difficulty with their economies, so growth has slowed. She likes the story for a long term. Yield of about 3.5%.

Part of the issue here is currency related, because of where they are. The stock has kind of meandered a bit. The entire consumers’ staple space is not cheap and has pushed valuations up. You want to be very careful of the types of names you own in this area.

The collapse of the euro helped them. Companies like this have too many brands. Those brands are all making money, but when you are a big company and own all these things, you tend to just keep them. Thinks they are going through and disposing of non-core brands, which will create better margins.

Global super star company. A good track record in emerging markets. They are struggling with growth. There may be a tax advantage as to whether you buy it in the UK or through an ADR. There are different tax treaties between the UK and Canada and the US and Canada.