Will Unilever help you retire in style?

The stock hasn't kept up with the bull market, and that makes for a buying opportunity.

By Benzinga Nov 19, 2013 5:24PM

Caption: Ben & Jerry's ice cream sign at the visitors center
Credit: © Kristoffer Tripplaar/AlamyBy Jonathan Yates


Even during The Great Recession, economic growth in emerging markets still rose.


That trend will continue, as the United States, Europe and Japan all have intractable problems that will stultify any significant positive economic performance for a long, long time. Investors should look to companies that are well-positioned to profit from emerging market expansion to provide for retirement income and other needs.


Unilever (UL) is one such stock that could help you retire in style.


Unilever is a British consumer products conglomerate. It derives much of its revenues from emerging market sales. The company has a host of well-known brands such as Dove, Rama and Ben & Jerry's, among many others. On any given day, 2 billion people around the world use Unilever brands.


Having a recognizable name is very important in emerging market nations. There is a huge emphasis, due to safety concerns, on goods and services that are known for delivering adequate quality for the money. These are known as the "forces for stability" in a society, according to Guy Sorman, a French intellectual and contributing editor of City Journal.


There is no doubt that Unilever in one of the "forces for stability" for consumers in markets around the world.


That is a huge competitive advantage for Unilever and others in the consumer goods sector such as Coca-Cola (KO) and McDonald's (MCD). No matter where on the planet, customers know what a product from McDonald's or Coca-Cola will taste like and that it will be safe to consume. It is the same with Unilever.


For investors, however, Unilever has not kept up with the bull market.


That makes for a buying opportunity. The profit margin for Unilever is 18.10 percent. The return-on-equity is 65 percent. The share price eventually will catch up to financials like those compelling figures.


Until that happens, investors are paid a dividend of nearly 3.7 percent. That increases the total return for its shareholders. There is plenty of cash flow to increase the dividend, too. The growth in consumer spending around the world will deliver the rest that should provide for an enjoyable retirement lifestyle for long-term investors in Unilever.


Read more from Benzinga

2Comments
Nov 19, 2013 8:48PM
avatar
Yes - The geriatric economic era is underway.  Hords of older people will be scouring the streets looking to get their hands on some young flesh for various purposes.

The 60's era progressive horn dogs have already started banging away in the nursing homes.
Nov 19, 2013 10:28PM
avatar
Unilever, P&G, Colgate, etc --- Serving with absolute certainty, a specific and reliable amount of genetically modified, chemically treated, artificially flavored and sweetened highly processed biomass to the masses.
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