Unilever
Website:
Unilever
Index:
FTSE 100
EPIC: ULVR
Supersector:
Personal and Household Goods
Sector:
Personal Goods
Subsector:
Personal Products
Market Cap:
£107.83B
Payout Frequency: Quarterly
Unilever Dividend Analysis and Summary
Key Dividend Details
- Dividend declared: €0.4664 per share (Q4 2025 interim); equivalents: £0.4052 (PLC LSE line) and $0.5547 per ADR.
- Ex-dividend date: 26/02/2026 (Ordinary shares); ADRs: 27/02/2026.
- Record date: 27/02/2026.
- Payment date: 10/04/2026.
- DRIP election deadline: 18/03/2026.
- Growth: quarterly dividend increased +3.0% versus Q3 2025.
- Currency note: dividend declared in euros; GBP and USD amounts set using WM/Reuters rates on 11 Feb 2026.
- Share consolidation: an 8-for-9 consolidation was implemented in Dec 2025 to maintain comparability of DPS and EPS; the Q4 amount reflects the post-consolidation base.
- Indicative annualised run-rate (4x quarterly): €1.8656 per share (actual 2025 total may differ).
Coverage and Cash Flow Support
- 2025 Free cash flow: €5.9bn; cash dividends paid on ordinary share capital: €4.45bn ? FCF coverage ~1.3x.
- Underlying EPS 2025: €3.08; annualised dividend run-rate €1.8656 ? payout ~~60–61% on UEPS (coverage ~1.6x).
- Operating resilience: 20.0% underlying operating margin (+60bps), 100% cash conversion, net debt/UEBITDA 2.0x.
- Capital returns: new €1.5bn buyback expected to start in Q2 2026, complementing the dividend and supporting per-share metrics.
Dividend Sustainability and Growth Outlook
- Sustainability: The dividend is supported by solid FCF generation, improved margins, and disciplined overhead management. Even with FX headwinds, UEPS edged up and coverage metrics remain adequate.
- Growth trajectory: The 3% Q/Q uplift signals a cautious return to growth. Management guides 2026 USG to the low end of 4–6% with a “modest” margin improvement, consistent with scope for low single-digit dividend growth, subject to FX and market conditions.
- Cash levers: Remaining €130m productivity savings targeted for 2026 and potential proceeds from the ~19.9% retained TMICC stake (to be sold down) enhance flexibility to fund demerger costs and maintain distributions.
Structural Changes and Policy Implications
- Ice Cream demerger (Dec 2025): Unilever is now a simpler, higher-margin mix business focused on Beauty & Wellbeing and Personal Care. Retained ~19.9% TMICC stake to be sold down to fund demerger costs and preserve capital flexibility; not a direct commitment to higher dividends but supportive to balance sheet resilience.
- Share consolidation: 8-for-9 consolidation executed in Dec 2025 to align per-share comparatives (including DPS). Investors with unchanged economic ownership should see broadly consistent total cash, aside from the 3% increase.
- Portfolio reshaping: Multiple disposals (e.g., The Vegetarian Butcher, Kate Somerville, Graze; announced sales of Indonesia Tea and Home Care in Colombia/Ecuador) and targeted acquisitions (Wild, Dr. Squatch, Minimalist) tilt the mix to premium, higher-return areas—supportive for medium-term dividend capacity.
- Buybacks: A new €1.5bn programme slated for 2026 underscores commitment to shareholder returns alongside the “attractive dividend.”
Risks and Flags to Dividend Stability
- FX headwinds: Significant adverse currency impact in 2025 (reported turnover -5.9% from FX); DPS is euro-denominated, so GBP/USD receipts vary with FX.
- Market softness: Slower conditions in Europe and parts of Latin America and China could constrain top-line momentum; 2026 growth guided to the bottom end of the range.
- Execution risk: Ongoing portfolio changes, TSA arrangements post-demerger, and the final phase of productivity savings carry delivery risk, though targeted savings and margin actions mitigate.
- Non-underlying costs: Restructuring (1.2% of turnover) and litigation-related charges persist; manageable but worth monitoring for cash impact.
- Leverage and rates: Net debt/UEBITDA at 2.0x is comfortable, but higher rates could elevate interest costs, modestly reducing dividend headroom if FCF softens.
Read more
Unilever Annual Dividend Yield - 3.16%
Dividends Used in Calculation:
| Ex-Dividend Date |
Payment Date |
Type |
Amount |
Currency |
| 27/02/2025 |
28/03/2025 |
Q4 |
37.75p |
GBX |
| 15/05/2025 |
13/06/2025 |
Q1 |
38.87p |
GBX |
| 14/08/2025 |
12/09/2025 |
Q2 |
39.16p |
GBX |
| 06/11/2025 |
05/12/2025 |
Q3 |
39.2800p |
GBX |
Total (Annual Dividends Per Share):
155.06p
Dividend Yield =
Annual Dividends Per Share (155.06p)
÷ Share Price (4903.5p)
= 3.16%
Unilever Dividend History
| Ex Dividend Date |
Payment Date |
Type |
Amount |
Currency |
| 26/02/2026 |
10/04/2026 |
Q4 |
40.5200p |
GBX |
| 06/11/2025 |
05/12/2025 |
Q3 |
39.2800p |
GBX |
| 14/08/2025 |
12/09/2025 |
Q2 |
39.16p |
GBX |
| 15/05/2025 |
13/06/2025 |
Q1 |
38.87p |
GBX |
| 27/02/2025 |
28/03/2025 |
Q4 |
37.75p |
GBX |
| 07/11/2024 |
06/12/2024 |
Q3 |
36.63p |
GBX |
| 08/08/2024 |
06/09/2024 |
Q2 |
36.96p |
GBX |
| 16/05/2024 |
07/06/2024 |
Q1 |
36.74p |
GBX |
| 22/02/2024 |
22/03/2024 |
Q4 |
36.47p |
GBX |
| 16/11/2023 |
08/12/2023 |
Q3 |
37.15p |
GBX |
| 03/08/2023 |
31/08/2023 |
Q2 |
37.00p |
GBX |
| 18/05/2023 |
15/06/2023 |
Q1 |
37.83p |
GBX |
| 23/02/2023 |
21/03/2023 |
Q4 |
38.12p |
GBX |
| 17/11/2022 |
09/12/2022 |
Q3 |
37.22p |
GBX |
| 04/08/2022 |
01/09/2022 |
Q2 |
36.33p |
GBX |
| 19/05/2022 |
16/06/2022 |
Q1 |
35.90p |
GBX |
| 24/02/2022 |
22/03/2022 |
Q4 |
36.02p |
GBX |
| 04/11/2021 |
01/12/2021 |
Q3 |
35.98p |
GBX |
| 05/08/2021 |
08/09/2021 |
Q2 |
36.93p |
GBX |
| 20/05/2021 |
10/06/2021 |
Q1 |
37.10p |
GBX |
| 25/02/2021 |
17/03/2021 |
Q4 |
37.60p |
GBX |
| 29/10/2020 |
20/11/2020 |
Q3 |
37.46p |
GBX |
| 06/08/2020 |
09/09/2020 |
Q2 |
36.98p |
GBX |
| 14/05/2020 |
04/06/2020 |
Q1 |
36.14p |
GBX |
| 20/02/2020 |
18/03/2020 |
Q4 |
34.72p |
GBX |
| 31/10/2019 |
04/12/2019 |
Q3 |
35.76p |
GBX |
| 08/08/2019 |
11/09/2019 |
Q2 |
36.82p |
GBX |
| 02/05/2019 |
05/06/2019 |
Q1 |
35.46p |
GBX |
| 14/02/2019 |
20/03/2019 |
Q4 |
33.61p |
GBX |
| 01/11/2018 |
05/12/2018 |
Q3 |
33.93p |
GBX |
| 02/08/2018 |
05/09/2018 |
Q2 |
34.35p |
GBX |
| 03/05/2018 |
06/06/2018 |
Q1 |
33.41p |
GBX |
| 15/02/2018 |
21/03/2018 |
Q4 |
31.55p |
GBX |
| 02/11/2017 |
13/12/2017 |
Q3 |
31.99p |
GBX |
| 03/08/2017 |
06/09/2017 |
Q2 |
31.83p |
GBX |
| 04/05/2017 |
07/06/2017 |
Q1 |
30.21p |
GBX |
| 09/02/2017 |
15/03/2017 |
Q4 |
27.68p |
GBX |
| 27/10/2016 |
07/12/2016 |
Q3 |
28.90p |
GBX |
| 04/08/2016 |
07/09/2016 |
Q2 |
26.89p |
GBX |
| 28/04/2016 |
01/06/2016 |
Q1 |
25.56p |
GBX |
| 04/02/2016 |
09/03/2016 |
Q4 |
23.00p |
GBX |
| 29/10/2015 |
09/12/2015 |
Q3 |
22.59p |
GBX |
| 06/08/2015 |
09/09/2015 |
Q2 |
21.10p |
GBX |
| 23/04/2015 |
03/06/2015 |
Q1 |
21.80p |
GBX |
| 05/02/2015 |
11/03/2015 |
Q4 |
21.77p |
GBX |
| 06/11/2014 |
10/12/2014 |
Q3 |
22.52p |
GBX |
| 06/08/2014 |
10/09/2014 |
Q2 |
22.53p |
GBX |
| 07/05/2014 |
11/06/2014 |
Q1 |
23.38p |
GBX |
| 05/02/2014 |
12/03/2014 |
Q4 |
22.22p |
GBX |
| 06/11/2013 |
11/12/2013 |
Q3 |
22.80p |
GBX |
| 07/08/2013 |
11/09/2013 |
Q2 |
23.12p |
GBX |
| 08/05/2013 |
12/06/2013 |
Q1 |
22.91p |
GBX |
| Year |
Currency |
Total |
Change |
| 2024 |
GBX |
146.800 |
-2.190 |
| 2023 |
GBX |
150.100 |
3.180 |
| 2022 |
GBX |
145.470 |
-1.440 |
| 2021 |
GBX |
147.610 |
1.580 |
| 2020 |
GBX |
145.300 |
2.570 |
| 2019 |
GBX |
141.650 |
6.310 |
| 2018 |
GBX |
133.240 |
9.470 |
| 2017 |
GBX |
121.710 |
16.630 |
| 2016 |
GBX |
104.350 |
19.580 |
| 2015 |
GBX |
87.260 |
-3.730 |
| 2014 |
GBX |
90.650 |
31.700 |
| 2013 |
GBX |
68.830 |
|
Unilever Dividend Calculator
Unilever Dividend Growth
| Dividend Growth (1Y) |
3.54%
|
| Dividend CAGR (5Y) |
0.69%
|
| Years of Growth |
1
|
| Payout Ratio |
45.82%
|
| Buyback Yield |
-10.55%
|
| Shareholder Yield |
-7.05%
|
| P/E Ratio (TTM) | 21.84 |
|---|
| Forward P/E | 17.9 |
|---|
| P/FCF | 17.79 |
|---|
| Earnings Yield | 7.68% |
|---|
| FCF Yield | 5.62% |
|---|
| ROE | 30.96% |
|---|
| ROCE | 20.91% |
|---|
| Profit Margin | 18.75% |
|---|
| Operating Margin | 20.21% |
|---|
| Gross Margin | 100% |
|---|