Is There Any Hope Left for This High-Yield Food Maker?
U.K.-based Unilever (NYSE: UL) is one of the world's largest consumer staples producers with a $120 billion or so market capitalization. While it owns iconic brands, being big isn't enough in the highly competitive spaces where it operates.
And if the weak stock price over the past five years (down over 20%) is any indication, investors are not very excited by Unilever's prospects. Yet, here's why there is reason to be excited -- if you can handle sitting tight through what could be a bumpy turnaround.
The main reason for investors to like Unilever today is the company's fat 4.1% dividend yield. That's toward the high end of the consumer staples company's historical range, suggesting the stock is relatively cheap today. The unfortunate piece of this equation is that dividend yields move in the opposite direction of stock prices, so the yield is only as high as it is because the stock has not been performing very well.
Source Fool.com
