3D·

Unilever - go or hold?

How would you deal with the Unilever $ULVR (-1,3 %) position? I have more or less 50 shares in my portfolio since the beginning but somehow I think that the money would be better placed elsewhere... My equity is 49.94€, which results in a performance of ~2.8% (without dividends) or ~11.5% (with dividends).

Same with Pfizer $PFE (-0,3 %) ~-9% incl. dividends, but somehow little to no recovery despite historically good equity.

Thanks for tips

18Puestos
53.442,39 €
38,68 %
2
27 Comentarios

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The big elephants have hardly any growth left.
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@Tenbagger2024 Would you sell them immediately?
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@wasi
I don't want to talk you into it.
But $KRI would have performed better in 1 year than Unilever in 10 years.
And I think there are also better stocks than Pfizer in the pharmaceutical sector
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Unilever $ULVR best stock existing if you ask me. For dividend purpuse”
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@Mhrk not even in my portfolio...
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@wasi for me it is🤷🏼‍♂️
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The question is, what purpose do the two stocks serve in your portfolio? You probably didn't include them as yield drivers. 😉
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@Baisse-Jumper Probably like any other portfolio, mainly dividends + growth. Unfortunately, it is limited to dividends. $KO and $BATS were bought for the same purpose, but they are also growing. That's why I'm undecided. I still have +25 years to invest
@wasi So without having the aforementioned crystal ball: If you have other stocks in mind that you think have more potential (share price plus divi), then I wouldn't hesitate too long. $ULVR probably has a little more potential than $PFE. For me, however, neither would necessarily be the first or second choice for dividend stocks, as the price potential and / or dividend growth are too low.
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What to buy as an alternative? If the two shares are good for you, leave them as dividend stocks. I only bought Pfizer after 2025 😃
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@Smudeo Alternatively, top up $BTC and $RKLB or buy $PNG for the first time - or something completely different that I don't have on my radar yet.
Pfizer is not as "important" to me as Unilever for the time being, as I think the EK is good and pharma should come back slowly.
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Olaf's savings book. But okay for stabilization.
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Sell and $CCEP if you want to stay in the sector.
If you want me to explain it in detail, let me know.
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@Investor-College I'm happy to give you the information. I have the $CCEP in my portfolio myself (and have already supplied parts for it), bought at the time because it was valued much more favorably than the original $KO share.
Greetings 👋🏻
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@CuriousBrewery
Gladly, here is my reasoning:

I apply clear criteria when selecting dividend stocks. If it is fulfilled, I award points. These are my criteria:

1. payout ratio (POR) --> <75% (Durchschnitt über drei Jahre hinweg; 1 Punkt)
2. Verschuldungsgrad --> <200% (Durchschnitt über drei Jahre hinweg; 1 Punkt)
3. Dividendenwachstumsrate (Dividend Growth Rate DGR) —> >=7% over 1, 3, 5,10 years on average; up to 4 points; the inflation adjustment should ideally already be included in the DGR)
4. return on sales --> >5% (average over 3 years; 1 point)
5. equity ratio --> >=30% (average over 3 years; 1 point)
6. return on equity (RoE) --> >=15% (average over 3 years; 1 point)
7. price-cash-flow-ratio (P/FCF) --> <20 (1 Punkt)
8. Free Cash Flow Marge (Free Cashflow Margin;FCM) -->between 5% and 30% (average over 3 years; 1 point))
9. Annual earnings growth --> 8%-12% (average over 5 years; 1 point)

This makes a maximum total of 12 points that a share can achieve here.

In addition, the total return (price gain+dividend) is also taken into account in my evaluation; it should be >10% over 1, 3, 5 and 10 years (maximum 4 achievable points).

This makes a maximum total of 16 possible points.

And $CCEP scores an impressive 16 out of 16 points. I know of few other values that achieve this. Everything fits.
And in comparison, $KO "only" scores 9 points.
So it's not difficult for me to choose here.

In the "Industrial" sector, I would mention $SNA, which also scores 16 out of 16 points.

I could now explain why I am applying these criteria, but I think they speak for themselves.

Comprehensible?
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@Investor-College top explanation 🤝🏻 thanks for the added value 👍🏻
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@CuriousBrewery Gladly.
A little more background information:
In order to be well diversified, I invest in all 11 sectors (according to GICS) and select three to five stocks per sector with the highest possible score.
Each sector has a different percentage share of the total investment. To determine the percentages, I used the historical performance of the individual sectors.
I feel comfortable with this and have a crystal-clear investment strategy. For me, the goal is to close my pension gap (which I have already managed to do). Ultimately, I want to have the same amount of money available every month in retirement as I do today. That's why I have a portfolio of dividend shares.

However, I also have my "playground" where I invest in growth stocks (the profits from which are then used to expand the dividend portfolio).

And finally an ETF portfolio as a stabilizer.
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@Investor-College the points are awarded according to criteria you set yourself or by a model? I would be interested to know how to get more information on such scoring methods - e.g. books etc 😊
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@CuriousBrewery Yes, building up knowledge is ultimately the be-all and end-all. You should think for yourself and pursue a strategy that suits you and that you feel comfortable with.
For me, it's the incentive not to have to cut back on my monthly disposable income when I retire. What's more, I could even retire earlier and accept a 14.4% reduction in my state pension. Let's see...

In my opinion, the above criteria describe companies with high stability and healthy growth very well. I have also summarized this in detail and explained why this is the case.
However, finding companies that meet all the criteria is the exception (I mentioned two).

To find suitable stocks in the individual sectors, I have built a tool (screener) in Google Sheet. The data provider is wisesheets.io, so the whole process is more or less automated.
It works really well. Maybe I can give you an insight.
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@Investor-College would be cool 🙏🏻😎
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@CuriousBrewery We'd almost have to do it privately via video chat, I think. Or do you see another possibility?
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@Investor-College yes, maybe via Discord?
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@CuriousBrewery If necessary, even above it. I'm less at home there. Google Meet would be my suggestion. But how do we get in direct contact?
Ver todas las 2 respuestas adicionales
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I actually also have such quiet stocks and am torn. On negative days, however, such stocks are a real rock in the surf. On a good day they rise 1% and on a bad market day they fall by only 1%.

My idea is to shift such "underperformers" (to put it very meanly) into an MSCI World. And regarding the dividend... Well... if you have stocks/companies in your portfolio... that increase 3-5% annually... you might be at 4-5% dividend yield in 20 years... Also not the burner. For me, these are companies like $JNJ $PEP $MRK

But of course that's just my opinion.
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I would think about your investment case.

You can of course say that the share price has been treading water for a long time. You are not exactly operating in a disruptive field. Margins are not extremely good at the moment.

On a positive note, through Hindustan Unilever they have a foot in the door to one of the largest sales markets in the world, which is constantly growing. Wages are rising there and often the first "luxury expenditure" is branded hygiene and food products. This is exactly where Unilever is well positioned.

Everyone has to decide for themselves how to assess these scenarios.

Unilever is neither the next Nvidia nor the next Wirecard.
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