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19 September 2021
12:07 hour

As the Reckitt and Unilever share prices fall, I’d buy both

The Motley Fool UK

14/09/2021 - 15:16

Both the Reckitt and Unilever share prices have been falling. Christopher Ruane explains why he would consider adding both to his portfolio now. The post As the Reckitt and Unilever share prices fall, I’d buy both appeared first on The Motley Fool UK.


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  1. The Unilever share price (ULVR) is falling. Here’s why it’s on my August shortlist (28/07/2021 - The Motley Fool UK)
    Unilever (LSE: ULVR) is one of those I always think should be tucked away in my portfolio somewhere. But I’ve never got round to buying. The trouble is, every time I’m ready for a purchase and I look at the Unilever share price, it suggests the stock is fully valued. I find what I think is a better bargain at the time, and buy that instead. If there’s ever a stock worth buying on the dips, it’s surely Unilever. The trouble is, it rarely dips. But it has now. So here’s why I’m thinking that perhaps, maybe, it might finally be time for me to buy. Unilever share price falling Unilever shares have been dropping since the consumer products giant released first-half results on 22 July. While turnover edged ahead slightly, margins and profits declined a little. The firm’s operating margin fell by a percentage point to 18.8% on an underlying basis, with underlying EPS down 2%. EPS measured by GAAP standards dropped 5%. The main culprit seems to be inflation, which is picking up a little. It’s raising the costs of Unilever’s inputs, and it always seems hard to pass on inflationary rises to consumers without something of a lag. Reckitt has been hit with the same problems, compounded with a fall-off in cleaning and disinfectant sales. And Reckitt shares fell harder than Unilever. So where might the Unilever share price head in August and beyond? Fellow Motley Fool writer Andy Ross thinks it could continue to struggle in the months ahead. He makes some good points, and I think he could be right. Extended buying opportunity? If the price weakness does continue, it won’t bother me too much though. In fact, I’d welcome it, as it would give me more time to think about Unilever as an investment. That would be extra useful right now, because I reckon I’m seeing a lot of good buying opportunities out there and it’s tricky choosing between them. Looking back a bit further into the Unilever share price history suggests a potentially even better buy. Unilever shares might have fallen in July. And they’re also down since their August 2019 peak well before the pandemic arrived. But if we go back as far as March 2017, we see price levels around the same as today’s. So we’re looking at a quality stock, whose share price has essentially gone nowhere in more than four years. And in that time, with the exception of a small decline in 2020, EPS has continued to grow. Dividend looking good? The dividend has remained stable too. If the 2020 payment is repeated in the current year, it would provide a yield of 3.1% on the latest Unilever share price. For Unilever and its long tradition of progressive dividends, I find that attractive. On top of that, it’s a stock that’s attracted top investors who know a good long-term pick when they see one. Unilever is on my shortlist for August and possibly beyond. My main problem is that the list is getting long, and I’ll need to cut it down quite a bit. The post The Unilever share price (ULVR) is falling. Here’s why it’s on my August shortlist appeared first on The Motley Fool UK. 5 Stocks For Trying To Build Wealth After 50 Markets around the world are reeling from the coronavirus pandemic… And with so many great companies trading at what look to be ‘discount-bin’ prices, now could be the time for savvy investors to snap up some potential bargains. But whether you’re a newbie investor or a seasoned pro, deciding which stocks to add to your shopping list can be daunting prospect during such unprecedented times. Fortunately, The Motley Fool is here to help: our UK Chief Investment Officer and his analyst team have short-listed five companies that they believe STILL boast significant long-term growth prospects despite the global lock-down… You see, here at The Motley Fool we don’t believe “over-trading” is the right path to financial freedom in retirement; instead, we advocate buying and holding (for AT LEAST three to five years) 15 or more quality companies, with shareholder-focused management teams at the helm. That’s why we’re sharing the names of all five of these companies in a special investing report that you can download today for FREE. If you’re 50 or over, we believe these stocks could be a great fit for any well-diversified portfolio, and that you can consider building a position in all five right away. Click here to claim your free copy of this special investing report now! More reading Why the Unilever (#ULVR) share price could continue to struggle Fundsmith’s Terry Smith would buy stocks like this to beat inflation Why did the Unilever share price plummet this week? The ULVR share price crash: should I buy more? What’s going on with the Unilever share price? Alan Oscroft has no position in any of the shares mentioned. The Motley Fool UK has recommended Unilever. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
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  2. The Reckitt Benckiser share price falls after sales leap. Do I buy Reckitt? (29/04/2021 - The Motley Fool UK)
    UK consumer-goods giant Reckitt Benckiser (LSE: RKT) released its first-quarter results yesterday morning. Unfortunately, despite sales growth continuing into 2021, the Reckitt Benckiser share price slid again. Down goes the Reckitt Benckiser share price On Tuesday, the Reckitt Benckiser share price closed at 6,586p (almost £66). However, following the results announcement on Wednesday, the stock headed south right from the off. After falling early morning, the shares continued to decline all day. At its low yesterday, the share price dipped to a low of 6,315p, before inching up to close at 6,328p. That marked a fall of 258p, down 3.9%. What caused the Reckitt Benckiser share price to fall on Wednesday? After all, Reckitt beat sales forecasts, thanks to booming sales of hygiene products used to fight Covid-19. Like-for-like revenues were up 4.1%, ahead of predictions. However, this was well below the 13.3% growth recorded a year ago as Covid-19 infections exploded last spring. Somewhat predictably, sales of Lysol disinfectant and the like surged, with sales of hygiene products soaring by 28.5%. However, Reckitt took a hit as its health (sales -13%) and nutrition (-7.4%) divisions failed to live up to expectations. With most of the world masked up and in lockdown, cold and flu infections plummeted. This caused a drop of nine-tenths (90%) in sales of medicines such as Mucinex, Nurofen, and Strepsils. Nevertheless, total net revenue topped £3.5bn, while ecommerce sales rose by almost a quarter (24%) to more than an eighth (13%) of total revenues. So why the weak share price? Reckitt ditches its RB brand In 2009, Reckitt Benckiser launched a major rebrand as RB, introducing a new logo and dropping its historic monikers. Twelve years later, it has admitted defeat and, last month, it decided to be known as…Reckitt. With another new logo and market ticker (RKT). For a company with origins dating back 207 years to 1814, this branding blather is a waste of management time and effort. Meanwhile, the Slough-based business is aiming to expand through four growth drivers: increased penetration, market share gains, new places, and new spaces. Perhaps this expansion of its customers, product ranges, and markets will help boost the Reckitt Benckiser share price in future? Would I buy Reckitt today? Another thing to note is that RB hasn’t enjoyed the post-Halloween market surge fuelled by Covid-19 vaccinations. For the record, here’s the performance of the Reckitt Benckiser share price over various periods: 1W -6.7% 1M -3.6% 3M 0.4% 6M -7.7% 1Y -2.0% 2Y 2.3% 3Y 14.0% 5Y -6.3% As you can see, the Reckitt Benckiser share price has been bumping along for years. Notably, it has failed to rise with the wider market surge of the past six months. What Reckitt really needs is a sustained boost to revenues. Yet, although the group aims to increase revenues by 4% to 6% in the medium term, it expects growth of only 0% to 2% in 2021. But would I buy into this business today? At the current Reckitt Benckiser share price of 6,380p, Reckitt is valued at £45.8bn, making it a FTSE 100 powerhouse. The full-year dividend of 174.6p works out to a dividend yield of 2.7% a year, lower than the Footsie’s yield. Although there is a good, long-established business with decent brands inside Reckitt, it keeps struggling to make progress. For now, I prefer giant rival Unilever to the newly rebranded Reckitt! CEO’s £500,000,000 Stake on Industry’s “Uber” Revolution We think that when a company’s CEO owns 12.1% of its stock, that’s usually a very good sign. But with this opportunity it could get even better. Still only 55 years old, he sees the chance for a new “Uber-style” technology. And this is not a tiny tech startup full of empty promises. This extraordinary company is already one of the largest in its industry. Last year, revenues hit a whopping £1.132 billion. The board recently announced a 10% dividend hike. And it has been a superb Motley Fool income pick for 9 years running! But even so, we believe there could still be huge upside ahead. Clearly, this company’s founder and CEO agrees. Learn how you can grab this ‘Top Income Stock’ Report now More reading The FTSE 100 index zooms past 7,000. Here’s what I’d buy now UK shares to buy now: 2 FTSE 100 stocks I own 2 FTSE 100 stocks I’d buy Cliffdarcy has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post The Reckitt Benckiser share price falls after sales leap. Do I buy Reckitt? appeared first on The Motley Fool UK.
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  3. 1 beaten down UK growth share to buy right now (25/08/2021 - The Motley Fool UK)
    While the stock market has been moving broadly upwards in the past year, not all shares have done well. In fact, one FTSE 100 company has fallen 27% over the past 12 months, while the index has posted a 17% gain. I think that could be a buying opportunity for my portfolio. Here I dig into the details of this well-known UK growth share. Multinational brand owner The company in question is Reckitt (LSE: RKT). The multinational giant is known for brands including Finish and Clearasil. Its operations span different areas of need, such as health, hygiene and nutrition. It sells in almost 200 countries globally. Moreover, it has a strong history of revenue growth. In the past decade, the compound annual growth rate for the company’s revenue has been 5.2%. While that might not sound huge, I think it is impressive. Reckitt is a long-established company operating in some very mature markets. Demand for products such as dishwashing detergent is fully met in many markets. So finding a way to grow sales by more than 5%, year after year, qualifies the company as a growth share in my mind. Given the growth, why has the Reckitt share price been struggling? The Reckitt share price There are a couple of reasons the share price has been in decline. First, the company’s infant nutrition business continues to worry analysts. It added a lot of debt to its balance sheet to buy Mead Johnson four years ago. The business has been a source of problems ever since. Reckitt has announced plans to offload its Chinese infant formula business. That could improve management focus on the successful parts of Reckitt, but it has spooked investors who worry whether the company’s strategy is coming undone.  A second reason driving the Reckitt share price decline is inflation. While the pandemic boosted demand for the company’s disinfectant products like Dettol and Lysol, it also led to significant inflation of costs. The company said it is currently battling inflation of 8%-9% on average. That is bad news for the Reckitt share price. If costs rise and the company cannot fully pass them on to consumers, its profit margins will shrink. Choosing UK growth shares to buy Given the current challenges, why do I consider Reckitt among UK growth shares to buy at the moment? I think some of the challenges will pass with time. There is a risk inflation of materials will reduce margins. But over time I think that will fall back, and the company can raise prices to help offset it. I see the infant formula acquisition as a costly mistake, but at least Reckitt is taking steps to fix that. Additionally, I feel the company’s strong line-up of familiar household brands could help it achieve pricing power for years or even decades to come. That could help boost profits. Meanwhile, the Reckitt share price fall means that the current dividend yield is 3.1%, which I find attractive. I think these UK growth shares could reward me if I add them to my portfolio and wait patiently for recovery. On that basis I would consider buying them for my portfolio. The post 1 beaten down UK growth share to buy right now appeared first on The Motley Fool UK. Inflation Is Coming: 3 Shares To Try And Hedge Against Rising Prices Make no mistake… inflation is coming. Some people are running scared, but there’s one thing we believe we should avoid doing at all costs when inflation hits… and that’s doing nothing. Money that just sits in the bank can often lose value each and every year. But to savvy savers and investors, where to consider putting their money is the million-dollar question. That’s why we’ve put together a brand-new special report that uncovers 3 of our top UK and US share ideas to try and best hedge against inflation… …because no matter what the economy is doing, a savvy investor will want their money working for them, inflation or not! Best of all, we’re giving this report away completely FREE today! Simply click here, enter your email address, and we’ll send it to you right away. More reading Mr Market has a meltdown Investors are buying this FTSE 100 stock. Should I? FTSE 100: 3 no-brainer shares to buy now Should I buy Reckitt shares after yesterday’s 8% fall? Here’s why I’d buy this surprise FTSE 100 faller today Christopher Ruane has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
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  4. Unilever versus Reckitt: which is the best stock to buy? (16/06/2021 - The Motley Fool UK)
    Unilever (LSE: ULVR) and Reckitt (LSE: RKT) are two FTSE 100 stocks operating in the personal and household fast-moving consumer goods sector. Investors like to classify them as defensive companies. That’s because their operations tend to exhibit some immunity to the ups and downs of the wider economy. In many ways, the goods they supply are essential rather than discretionary. People tend to keep buying cleaning, food and personal care products, whatever the economy is doing. However, customers are free to use goods produced by other suppliers, such as supermarket own-brands and other options. But to combat that tendency, these companies work and reinvest hard to promote and maintain their brands. And brand strength can make the difference between a good business and a poor one. Two of the best stocks to buy? I’d want these two stocks in my diversified portfolio. The underlying businesses tend to produce consistent cash flow, which is good for servicing shareholder dividends. But which one is the best buy now? At the end of April in the first-quarter trading statement, Unilever delivered an optimistic long-term outlook statement. Chief executive Alan Jope said the business made a “good” start to the new trading year. And he’s “confident” of underlying sales growth in 2021 of between 3% and 5%. And in the same week, Reckitt’s chief executive, Laxman Narasimhan, said the new trading year started “well” with like-for-like net revenue growth of just over 4%. Looking ahead, he reckons the balance in the company’s portfolio of products positions it well. And he’s “confident” in the outlook for both 2021 and the medium term. There isn’t much difference in the recent trading performances and outlook statements for the two businesses. But Unilever’s valuation looks a little lower. With the share price near 4,346p, the forward-looking earnings multiple for 2022 is just over 19. And the anticipated dividend yield is around 3.5%. Meanwhile, with its share price near 6,642p, Reckitt’s forward-looking multiple is just under 20. However, the anticipated yield is only 2.7%. But City analysts expect earnings to grow by just over 6% in 2022 for Unilever and by almost 10% for Reckitt. Valuation risk However, those valuations are quite full when compared with anticipated growth in earnings. And that’s one risk shareholders face with both these stocks. If earnings fail to grow as expected, we could see the valuations contract and I’d lose money on the shares. The market may also decide to downrate the valuations, even if earnings do hit the targets. All shares come with risks. Unilever has the edge regarding historical quality indicators because of its return on capital running near 18% and its operating margin of just over 16%. Those numbers compare with Reckitt’s return on capital of almost 9% and its operating margin just above 15%. Reckitt’s business appears to be improving fastest. But Unilever’s valuation looks a little lower and the dividend yield is higher. Meanwhile, both stocks are trading below recent highs. If I really did have to pick just one, Unilever would be my choice by a whisker. However, I’d be comfortable owning either stock right now. The post Unilever versus Reckitt: which is the best stock to buy? appeared first on The Motley Fool UK. Our 5 Top Shares for the New “Green Industrial Revolution" It was released in November 2020, and make no mistake: It’s happening. The UK Government’s 10-point plan for a new “Green Industrial Revolution.” PriceWaterhouse Coopers believes this trend will cost £400billion… …That’s just here in Britain over the next 10 years. Worldwide, the Green Industrial Revolution could be worth TRILLIONS. It’s why I’m urging all investors to read this special presentation carefully, and learn how you can uncover the 5 companies that we believe are poised to profit from this gargantuan trend ahead! Access this special "Green Industrial Revolution" presentation now More reading Best shares to buy now: 3 stocks I’d snap up today Top dividend stocks for June 2021 How I’d invest £500 in UK shares today Terry Smith has sold these 2 top British stocks. Here’s what I’d do now Shares to buy: 2 FTSE 100 dividend stocks I’d invest in now Kevin Godbold owns no share mentioned. The Motley Fool UK has recommended Unilever. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
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  5. Reckitt Benckiser rebrands itself as Reckitt (23/03/2021 - Financial Express)
    The comprehensive rebrand, including a new visual identity, was created and overseen by Havas’ branding agency Conran Design Group
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  6. The best shares to buy now: 2 FTSE 100 stocks I’ve been buying (13/02/2021 - The Motley Fool UK)
    I believe investors don’t need too look far to find the best shares to buy now. In fact, I’ve been finding what I believe to be undervalued investments in the FTSE 100 recently. Here are two of them I’ve been adding to my portfolio.  My picks of the best shares to buy now  At the top of my list is the consumer goods giant Unilever (LSE: ULVR). Shares in this company fell heavily after it released its full-year figures two weeks ago. Despite reporting an increase in sales for 2020, and reinstating growth targets, the market sold the stock.  The FTSE 100 company is targeting annual sales growth of between 3% and 5%. It intends to achieve this through a combination of organic growth, reinvesting in its existing brands, and acquisitions. However, despite management’s optimistic growth outlook, the company is facing challenges. One of these is increasing costs. These increased last year and squeezed Unilever’s margins. Investors seem to be worried that this trend could continue. That may impact Unilever’s bottom line. Some analysts have also expressed concern the group may lose out to smaller, more innovative peers. That’s always a risk the business faces. It’s something management has been able to deal with until this point, which gives me confidence about the future.  Overall, while Unilever faces challenges, I think this is one of the best shares to buy now after recent declines. If management can hit its ambitious growth targets, I think the company could prove to be an attractive investment. With more than 50% of the group’s sales coming from emerging markets, I think it’s also an excellent way to gain access to these fast-growing economies.  FTSE 100 stocks on offer Another company I’ve been buying recently for my portfolio is Reckitt Benckiser (LSE: RB). This firm, which specialises in cleaning products and consumer healthcare, has seen sales jump over the past few months. High demand for cleaning products in the pandemic has more than offset a slowdown in other parts of the business.  This growth is unlikely to last forever. As such, Reckitt’s future success will depend on management’s ability to deploy excess profits generated over the past 12 months into new growth initiatives. On this topic, management is planning to increase research and development spending, as well as marketing spend. These may be enough to maintain Reckitt’s expansion over the next few years. That’s why I’ve picked this out as one of the best shares to buy now.  That said, this FTSE 100 company isn’t without its challenges. Like Unilever, rising costs and smaller competitors may threaten Reckitt’s growth rate. These are challenges every business faces. However, Reckitt is particularly susceptible because the business earns high profit margins. This may attract competitors into the group’s market, making it harder for the consumer goods giant.  Nevertheless, I think the company is well equipped to deal with these challenges. That’s why I believe this FTSE 100 firm is one of the best shares to buy now.  There’s a ‘double agent’ hiding in the FTSE… we recommend you buy it! Don’t miss our special stock presentation. It contains details of a UK-listed company our Motley Fool UK analysts are extremely enthusiastic about. They think it’s offering an incredible opportunity to grow your wealth over the long term – at its current price – regardless of what happens in the wider market. That’s why they’re referring to it as the FTSE’s ‘double agent’. Because they believe it’s working both with the market… And against it. To find out why we think you should add it to your portfolio today… Click here to get access to our presentation, and learn how to get the name of this 'double agent'! More reading Why I won’t be rushing to buy Unilever shares Top income stocks for February 2021 2 FTSE 100 shares I’d add to my Stocks and Shares ISA in February 2 cheap UK shares I’d buy during this stock market recovery The Unilever share price is under 4,000p. Here’s what I’m doing now Rupert Hargreaves owns shares in Unilever and Reckitt Benckiser. The Motley Fool UK has recommended Unilever. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post The best shares to buy now: 2 FTSE 100 stocks I’ve been buying appeared first on The Motley Fool UK.
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  7. Which of these 3 FTSE 100 ‘safe stocks’ would I buy now? (29/04/2021 - The Motley Fool UK)
    2020 was a good year for safe stocks or defensive shares as pessimism hung over investors’ mood. But 2021 has not been quite as benevolent as the bulls came charging back into the stock market. FTSE 100 consumer staples and healthcare stocks have sagged as a result. But can this be a good time to start buying these stocks? Investors’ interest could return to them as cyclical stocks become pricier by comparison. I looked at three that have released updates recently.  #1. Unilever: signs of turnaround The FTSE 100 consumer goods giant Unilever (LSE: ULVR) is a big gainer at the stock market today as I write, after it posted its trading update. Even though its turnover, based on generally accepted accounting principles (GAAP), is down by around 1% for the first quarter (Q1) of 2021, its underlying numbers are strong.  Underlying sales growth is up 5.7% to €12.3bn, driven largely by volume growth. It has benefited from a weak base of 2020, which I expect will continue to drive the rest of 2021 as well. It expects growth to be in the 3% to 5% range, which is in line with its multi-year framework.  In a year with a weak base, however, it does not sound terribly positive to me. Also, one of its key growth markets is India, which is seeing a fresh wave of coronavirus restrictions.  I like the stock as a long-term buy, but if I had a three-year holding period in mind, I will consider it carefully.  #2. GlaxoSmithKline: results disappoint The FTSE 100 pharmaceuticals and healthcare biggie, GlaxoSmithKline, posted a poor set of Q1 2021 results yesterday with an 18% fall in turnover compared to Q1 2020. Net profits fell by 25% and earnings per share are down by 32%.  The company attributes this washout performance to Covid-19-related disruptions. Considering its strong performance in the years before, I am optimistic for its future. This is further strengthened by the fact that it expects “meaningful improvements…in revenues and margins”. It also has a strong dividend yield of around 6%. I would consider buying it from the income perspective.  #3. Reckitt Benckiser: mixed bag Consumer healthcare biggie Reckitt Benckiser, or Reckitt as it now prefers to be called, posted a mixed bag of a trading update yesterday. Its reported a 1.1% decline in reported revenues because of currency fluctuations.  Its like-for-like sales, however, were up by 4.1%, driven by a huge 28.5 % increase in its hygiene business. The growth in hygiene came from brands like Lysol, Air Wick, and Finish, with geographies like the US, UK, and India reporting double-digit growth.  But its two other segments, health and nutrition, shrank in Q1, 2021 driven by Covid-19-related restrictions. Like Unilever, another coronavirus wave in India could impact Reckitt in 2021 too. In any case, it expects like-for-like sales to slow down to 2% for the year.  I would wait and see how its situation develops before buying Reckitt.  5 Stocks For Trying To Build Wealth After 50 Markets around the world are reeling from the coronavirus pandemic… And with so many great companies trading at what look to be ‘discount-bin’ prices, now could be the time for savvy investors to snap up some potential bargains. But whether you’re a newbie investor or a seasoned pro, deciding which stocks to add to your shopping list can be daunting prospect during such unprecedented times. Fortunately, The Motley Fool is here to help: our UK Chief Investment Officer and his analyst team have short-listed five companies that they believe STILL boast significant long-term growth prospects despite the global lock-down… You see, here at The Motley Fool we don’t believe “over-trading” is the right path to financial freedom in retirement; instead, we advocate buying and holding (for AT LEAST three to five years) 15 or more quality companies, with shareholder-focused management teams at the helm. That’s why we’re sharing the names of all five of these companies in a special investing report that you can download today for FREE. If you’re 50 or over, we believe these stocks could be a great fit for any well-diversified portfolio, and that you can consider building a position in all five right away. Click here to claim your free copy of this special investing report now! More reading The Unilever (ULVR) share price has jumped. I’d buy now! Passive income: 2 FTSE 100 shares I’d buy now Is the Unilever share price too cheap? 3 reasons I can make a killing with FTSE 100 stocks in 2021 The Unilever share price is down 13% in 6 months. I’d buy now Manika Premsingh has no position in any of the shares mentioned. The Motley Fool UK has recommended GlaxoSmithKline and Unilever. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Which of these 3 FTSE 100 ‘safe stocks’ would I buy now? appeared first on The Motley Fool UK.
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  8. Why I won’t be rushing to buy Unilever shares (13/02/2021 - The Motley Fool UK)
    Unilever (LSE: ULVR) shares are popular with many UK investors. It’s the biggest company on the FTSE 100 by market capitalisation. It’s a truly international company, even previously having a dual Anglo-Dutch structure. This has now been solidified with a listing just in the UK. There’s a lot to like for investors who want a solid, relatively defensive company, but I’m not so sure it’s a share I want to put my money into. Especially after last week’s results. A brief look at the results Those results showed that full-year underlying sales rose by 1.9%. The majority of the improvement came from rising volumes rather than price hikes. Underlying operating profits were below what analysts had expected. They rose 0.7%, if exchange rates are included, and decreased by 5.8% if the exchange rates are stripped out.   On the positive side, debt was down, cashflow was up, and the dividend was increased. It went up by 4% in the fourth quarter. Net debt is now equivalent to 1.8 times cash profits, so is well under control.   Commenting on the results, Alan Jope said: “Early in the year, we refocused the business on competitive growth, and the delivery of profit and cash as the best way to maximise value. We have delivered a step change in operational excellence through our focus on the fundamentals of growth. As a result, we are winning market share in over 60% of our business in the last quarter, on the basis of measurable markets.” The pros and cons of investing in Unilever shares Unilever’s relatively small exposure to cleaning products, especially compared to Reckitt Benckiser, means it has struggled more during the pandemic. Beauty and personal care products make up a larger part of its sales. They account for about 41% of the total and haven’t been so much in demand as customers stay at home.  Unilever does have strong brands, growing international markets and strong environmental, social, and governance (ESG) credentials. The ESG focus could attract future investment, as this is becoming a more important investing criterion for many institutional investors. The company has also identified areas it wants to offload, such as its tea business. This streamlining will allow it to focus its huge marketing budget on the brands that will deliver higher growth, and margins. Overall, as I’m looking at shares that will increase my passive income in future years, while also boosting the capital growth of my portfolio, I just don’t see Unilever shares fitting the bill. Its growth is sluggish—that was the case even before the pandemic. Also, the shares trade on a price-to-earnings ratio of around 17, so aren’t cheap. I don’t think management is doing enough to boost margins. So far I don’t think the strategy is either working or moving fast enough. So, even after the recent share price fall, and despite the company having many strengths, I’m not tempted to buy Unilever shares.   One stock for a post-Covid world… Covid-19 is ripping the investment world in two… Some companies have seen exploding cash-flows, soaring valuations and record results… …Others are scrimping and suffering. Entire industries look to be going extinct. Such world-changing events may only happen once in a lifetime. And it seems there’s no middle ground. Financially, you’ll want to learn how to get positioned on the winning side. That’s why our expert analysts have put together this special report. If the pandemic has completely changed our lives forever, then they believe that this stock, hidden inside the tech-heavy NASDAQ, could be set for monstrous gains… Click here to claim your copy now — and we’ll tell you the name of this US stock… free of charge! More reading Top income stocks for February 2021 2 FTSE 100 shares I’d add to my Stocks and Shares ISA in February The Unilever share price is under 4,000p. Here’s what I’m doing now Will the Unilever share price keep falling? GSK vs Unilever: which dividend stock should I buy today? Andy Ross owns shares in Reckitt Benckiser. The Motley Fool UK has recommended Unilever. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Why I won’t be rushing to buy Unilever shares appeared first on The Motley Fool UK.
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  9. Why I’d buy shares in the FTSE 100’s Unilever today (05/03/2021 - The Motley Fool UK)
    The valuation of fast-moving consumer goods company Unilever (LSE: ULVR) looks keener than it’s been for years. The FTSE 100 stalwart’s share price is around 3,884p, as I write. And we haven’t seen it as low as this for around three years. Of course, a lower share price doesn’t guarantee a smaller valuation. But over those three years, earnings, cash flow and shareholder dividends have been generally increasing. Unilever has been grinding on Despite a slight wobble because of the pandemic, Unilever has been grinding forward doing what most investors expect of it. That is, delivering steady, consistent and defensive gains in its business. But the stock has been slipping lower since last autumn. One possible reason for the slide is that many investors might have recently rotated out of expensive defensives like Unilever. Instead, many have been buying into Covid recovery stocks such as Whitbread, Barclays, Easyjet and others. And over many years prior to the coronavirus crisis, defensive shares were popular for their dividend yields. Interest rates were low from cash savings and bonds. And investors bought steady stocks like Unilever instead. But all that buying led to rising share prices and higher valuations. But it’s common for defensive shares to fall in and out of favour at various times. We tend to prize such businesses for their resilience. And they tend to be less affected by the ups and downs of the economy than cyclical companies. But I think defensive stocks are prone to something of a valuation cycle as their popularity waxes and wanes with investors. Maybe all we are seeing now is a cycling down of valuations among defensive businesses. If so, this could be a decent opportunity for me to buy a few Unilever shares for the long term. After all, City analysts have pencilled in steady, single-digit uplifts in the shareholder dividend for this year and in 2022. And I reckon the firm’s well-loved brands look set to keep on powering cash flow. A quality business with slow growth However, one risk with Unilever is that the pace of growth is slow. The business scores well against quality indicators but it will probably never shoot the lights out with its annual figures for growth in earnings. So, if earnings slip in the years ahead, we could see even more contraction of the valuation. Indeed, the share price could continue to drift lower and I could lose money with Unilever’s shares. But the forward-looking earnings multiple for 2022 is running near 17. And the anticipated dividend yield is just below 4%. I’m tempted by that valuation because it seems fair for the quality of the enterprise. My plan would be to tuck a few of the shares away to hold for the long term. But Unilever isn’t the only big-cap defensive stock that’s caught my eye. I’d also run the calculator over AstraZeneca, British American Tobacco, GlaxoSmithKline, National Grid, Reckitt Benckiser and SSE. There are no guarantees that these stocks will perform well as investments though. FREE REPORT: Why this £5 stock could be set to surge Are you on the lookout for UK growth stocks? If so, get this FREE no-strings report now. While it’s available: you’ll discover what we think is a top growth stock for the decade ahead. And the performance of this company really is stunning. In 2019, it returned £150million to shareholders through buybacks and dividends. We believe its financial position is about as solid as anything we’ve seen. Since 2016, annual revenues increased 31% In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259 Operating cash flow is up 47%. (Even its operating margins are rising every year!) Quite simply, we believe it’s a fantastic Foolish growth pick. What’s more, it deserves your attention today. So please don’t wait another moment. Get the full details on this £5 stock now – while your report is free. More reading Two FTSE 100 dividend stocks I’d buy in March A UK dividend stock I’d buy today for passive income Why I’d ignore the Lloyds share price and buy this UK share from the FTSE 100 Was I wrong about these quality stocks or is this a buying opportunity? I buy cheap shares like Warren Buffett buys burgers! Kevin Godbold has no position in any share mentioned. The Motley Fool UK has recommended Barclays, GlaxoSmithKline, and Unilever. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Why I’d buy shares in the FTSE 100’s Unilever today appeared first on The Motley Fool UK.
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  10. Why did the Unilever share price plummet this week? (24/07/2021 - The Motley Fool UK)
    The Unilever (LSE:ULVR) share price has had a rough week. After publishing its latest trading report, it seems investors were less than impressed, which led to a 6% decline within 24 hours. That’s certainly not as volatile as some other stocks out there. But for a blue-chip consumer goods business, that’s a significant fall. So, what actually happened? And is this an opportunity to buy shares for my portfolio at a discount? Let’s take a look. A seemingly decent half-year report Despite what the fall in the Unilever share price might suggest, the half-year trading update was far from terrible. At least, that’s what I think. The underlying sales growth compared to a year ago beat analyst expectations, coming in at 5.4%. Most of this was attributable to its rapidly expanding e-commerce channel, which grew by a further 50%. Its online sales remain a small portion of the overall revenue stream (around 11%), but they are important. So much so that the management team stated, “we are confident that we will deliver underlying sales growth in 2021 well within our multi-year framework of 3-5%”. Meanwhile, its latest acquisitions within its Beauty & Personal care products also appear to be paying off. The firm had recently added Paula’s Choice to its portfolio, among others. Collectively these contributed a 1.4% boost in total turnover despite the adverse effects of currency exchange rates. To me, this sounds quite promising. So why did the Unilever share price fall? The falling Unilever share price As encouraging as this sales performance is, there continues to be mounting uncertainty from investors surrounding inflation. This is something I’ve previously explored when discussing Tesco. Because governments worldwide are issuing enormous stimulus packages to reboot their economies, the level of inflation is on the rise. As a consequence, the prices of raw materials are up too. Unilever has already started feeling the pressure from this.  In fact, due to the rising prices of raw material commodities and logistical distribution costs, the firm’s profitability has started taking a hit. Its operating margins fell by 1%. And it seems that as inflation ramps up, this impact will only intensify. The firm will more than likely start passing on these higher costs to consumers. However, doing so may impact sales growth as people look to cut down on spending. Needless to say, if either profits or sales are adversely affected by inflation, the Unilever share price could continue its downward trajectory. The bottom line The rising level of inflation is a concerning factor that will likely impact the entire consumer goods industry. However, the Bank of England expects that inflation levels will fall back to normalised levels in 2022 as the post-pandemic boost begins to slow. If it is correct in this assumption, it means that this dip in profitability is ultimately a short-term problem. Therefore, to me, the recent collapse of the Unilever share price does look like a buying opportunity for my portfolio. The post Why did the Unilever share price plummet this week? appeared first on The Motley Fool UK. But its not the only stock I’ve got my eye on this week… FREE REPORT: Why this £5 stock could be set to surge Are you on the lookout for UK growth stocks? If so, get this FREE no-strings report now. While it’s available: you’ll discover what we think is a top growth stock for the decade ahead. And the performance of this company really is stunning. In 2019, it returned £150million to shareholders through buybacks and dividends. We believe its financial position is about as solid as anything we’ve seen. Since 2016, annual revenues increased 31% In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259 Operating cash flow is up 47%. (Even its operating margins are rising every year!) Quite simply, we believe it’s a fantastic Foolish growth pick. What’s more, it deserves your attention today. So please don’t wait another moment. Get the full details on this £5 stock now – while your report is free. More reading The ULVR share price crash: should I buy more? What’s going on with the Unilever share price? 2 passive income UK shares to buy 3 FTSE 100 shares to buy today 3 stocks for beginners to consider Zaven Boyrazian has no position in any of the shares mentioned. The Motley Fool UK has recommended Unilever. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
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  11. I’d buy GlaxoSmithKline at its current share price (27/03/2021 - The Motley Fool UK)
    Since I last wrote about why I am a buyer of GlaxoSmithKline (LSE:GSK) shares, their price has risen by about 8%. The Glaxo stock price is, however, still down about 14% over the last 12 months. There is also the fact that it is trading at early 2018 prices. It looks like the GlaxoSmithKline share price swings between about 1,300p and 1,750p. Glaxo has paid a steady 80p dividend since 2015, so the dividend yield has swung between 6% and 4%. It appears that dividend yield is important to Glaxo shareholders. GlaxoSmithKline dividend cut When looking for answers to why the GlaxoSmithKline share price broke through the 1,300p level and has not started to make its usual turnaround, I need only to look to recent dividend news. Glaxo expects to pay an 80p dividend in 2021. However, a new policy is being put into action from 2022 onwards.  Management has warned shareholders that aggregate dividend payments will likely fall. The analyst consensus estimate for the 2022 Gaxo dividend is 67p. And, it will be an aggregate dividend because Glaxo plans to split into two companies in 2022. GlaxoSmithKline split Big shareholders in Glaxo have argued that selling toothpaste has little in common with making vaccines and prescription drugs. Now it appears their wish has been granted. Glaxo is set to split into two companies in 2022. The first, dubbed ‘New Glaxo’, will be a biopharma company. The second will be the consumer healthcare business. The consumer healthcare business is a cash cow. Once separated, it can be leveraged to a more appropriate capital structure. Free of the cash-hungry biopharma business dividends have scope to increase. The New Glaxo will get a cash injection and rid itself of a chunk of debt. The New Glaxo is likely to be a riskier company without the steady cash flows of the consumer healthcare business and will be spending heavily on R&D; dividends will likely be negligible and uncertain for some time. Repricing GlaxoSmithKline shares Of the 99 profitable pharmaceutical companies worth more than £1bn domiciled in G7 economies, Glaxo has the ninetieth lowest price-to-earnings ratio at 11. Post-split, I believe the consumer healthcare business could be priced more in line with consumer brands companies like Unilever and Reckitt Benckiser, who trade at 22 and 46 times earnings, respectively. New Glaxo will be the beneficiary of a concerted effort to ramp up R&D and acquisitions over recent years. For example, New Glaxo will inherit a potentially game-changing long-acting HIV medicine that has been approved in the US and the ‘adjuvant’ technology platform that boosts responses to vaccinations. It might be late to the party, but Glaxo is collaborating on several coronavirus vaccines that, if approved, will be in demand for some time. I can see the New Glaxo benefitting from a repricing to a growth-orientated company. There are plans If Glaxo can restructure and hive off two new businesses without letting costs mount up, then I believe I will be a happy investor in the long term. The aggregate risk probably increases with the two new companies. But, I have confidence that the Glaxo share price can break the cycle of bouncing between prices that imply a four to six per cent dividend yield by splitting in two. “This Stock Could Be Like Buying Amazon in 1997” I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner. But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared. What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations. And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! More reading Got £750 to invest? Here are my 2 best cheap shares to buy now! Does this FTSE 100 company have potential for big share price growth and income? The GSK share price has been rising. Here’s what I’m doing now The GSK share price is down 30% since the start of 2020. Should I buy now? These FTSE 100 giants are on my best stocks to buy now list James J. McCombie owns shares of GlaxoSmithKline, Reckitt Benckiser and Unilever. The Motley Fool UK has recommended GlaxoSmithKline and Unilever. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post I’d buy GlaxoSmithKline at its current share price appeared first on The Motley Fool UK.
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  12. 2 UK shares I’d consider buying and holding my whole life (20/03/2021 - The Motley Fool UK)
    The stock market can seem a frenetic place, with lots of buying and selling. But some very successful investors simply buy UK shares and hold them forever. That can be an attractive strategy for several reasons. Not only does it remove the commissions involved in frequent trading, it also allows one to stay away from the stock market for years at a time. Legendary investor Warren Buffett has said that it wouldn’t bother him if the stock market closed for years, as once he has bought shares his ideal holding time would be forever. That’s not true for all shares – Buffett does sell as well as buy. But here are two UK shares I would consider buying today and holding for the rest of my life. Household name with wide customer base Unilever (LSE: ULVR) is a household name. The fast moving consumer goods giant has a stable of brands including names like Surf, Domestos, and Knorr. Its products are sold in more than 190 countries and the company says 2.5bn people use its products every day. One of the reasons I like Unilever as a UK share to buy and hold is that I expect long-term demand for the sorts of products it sells. No matter what, I expect people will still be using shampoo and soap. Of course demand may go up and down – the pandemic increased demand for cleaning products, for example, but that could be a blip. But I think Unilever is well-prepared for the future. By owning brands selling at different price levels, it is able to offer something to customers across the economic spectrum. That is helpful as the company seeks to capitalize on emerging markets in Asia and Africa, for example. One risk is an economic downturn seeing consumers trade down. Despite this, the Unilever share price is down 8% over the past year. I regard it as a bargain to buy and hold, which is why I bought some shares. UK shares to hold A fairly similar company is Reckitt Benckiser. Like Unilever, it is a consumer goods powerhouse operating across many markets. I would consider holding it forever on the same reasoning I used for Unilever. Its brand portfolio includes iconic names like Dettol, Scholl, and Vanish. I think that helps build customer loyalty. Reckitt has proven itself good at stretching its brands into new areas, with Scholl being such an example. Additionally, its dividend yield of 2.8% is attractive. Unilever’s stands at 3.7%, which is better, but I think Reckitt has room to grow its dividend in future thanks to its current growth initiative which aims to transform financial performance. Of course, dividend payments are not certain – they can be cut at any time. However, a costly infant formula acquisition continues to weight on results. It also means that the company’s balance sheet continues to carry a lot of debt. I think the company can manage this – last year it reduced net debt by £1.7bn. But it still stands at £9bn. Long term, I believe both these UK shares have the potential to earn substantial sums for decades. I would consider buying both of them now and holding them forever. 5 Stocks For Trying To Build Wealth After 50 Markets around the world are reeling from the coronavirus pandemic… And with so many great companies trading at what look to be ‘discount-bin’ prices, now could be the time for savvy investors to snap up some potential bargains. But whether you’re a newbie investor or a seasoned pro, deciding which stocks to add to your shopping list can be daunting prospect during such unprecedented times. Fortunately, The Motley Fool is here to help: our UK Chief Investment Officer and his analyst team have short-listed five companies that they believe STILL boast significant long-term growth prospects despite the global lock-down… You see, here at The Motley Fool we don’t believe “over-trading” is the right path to financial freedom in retirement; instead, we advocate buying and holding (for AT LEAST three to five years) 15 or more quality companies, with shareholder-focused management teams at the helm. That’s why we’re sharing the names of all five of these companies in a special investing report that you can download today for FREE. If you’re 50 or over, we believe these stocks could be a great fit for any well-diversified portfolio, and that you can consider building a position in all five right away. Click here to claim your free copy of this special investing report now! More reading Scottish Mortgage Investment Trust: 2 peers paying bigger dividends The Unilever share price slumps, but I’m still buying the stock How I’d invest £1,000 in a Stocks and Shares ISA today Hit, hold or fold? Unilever, GlaxoSmithKline, AstraZeneca shares Why I’d buy shares in the FTSE 100’s Unilever today christopherruane owns shares of Unilever. The Motley Fool UK has recommended Unilever. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post 2 UK shares I’d consider buying and holding my whole life appeared first on The Motley Fool UK.
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  13. The Diageo vs Unilever share price rated (20/06/2021 - The Motley Fool UK)
    Two of my favourite investments are Diageo (LSE: DGE) and the Unilever (LSE: ULVR). I think both of these companies have all the hallmarks of successful buy-and-hold investments. Both groups own portfolios of billion-dollar brands, which have solid global followings. They also spend significant amounts of money on marketing and research and development, which only reinforces their competitive advantages.  On top of these factors, the two enterprises are also returning cash to investors. Both have attractive dividend yields and are buying back shares. By repurchasing shares, the companies can then drive earnings per share higher, increasing each share’s value.  For these reasons, I own both Diageo and Unilever shares. But if I had to pick just one of the two firms to buy, which would I add to my portfolio?  Size and diversification  Diageo and Unilever share similar qualities, but they both manufacture different products.  Diageo’s portfolio is entirely focused on alcoholic beverage brands. Meanwhile, Unilever’s offering extends from tea to ice cream, vegan sausages and shampoo. I think this means the portfolio is far more diversified. It may also be more acceptable for investors who don’t want any exposure to alcohol in their portfolios.  Indeed, due to the health effects of excessive alcohol consumption, there will always be a risk that governments may ban the company’s products in some markets. This has happened over the past 12 months. While the circumstances have been exceptional, the bans show how real this risk can be. That’s not to say that Unilever doesn’t face its own challenges. The company has attracted criticism for its environmental track record. It’s also trying to move away from unhealthy foods by investing more in vegan and healthy products.  Nevertheless, I believe, overall, the company’s portfolio comes with less risk.  Unilever share price opportunity  For the reasons outlined above, I’m inclined to say that if I had to pick between Unilever and Diageo, I’d choose the former.  It also looks more attractive from an income and valuation perspective. Unilever currently offers a dividend yield of 3.4%, compared to Diageo’s yield of 2%. What’s more, the drinks company is trading at a forward price-to-earnings (P/E) multiple of nearly 30. Unilever is trading at a forward P/E of 20.  While a lower valuation doesn’t guarantee better performance, I think these numbers show the consumer goods giant is the better investment at current levels. The Unilever share price also appears to offer a higher level of income although, once again, this isn’t guaranteed. If the company suffers from a significant decline in sales, it may have to cut the distribution to fund spending elsewhere in the business.  Overall, if I had to buy just one of these companies for my portfolio today, I’d stick with Unilever.  The post The Diageo vs Unilever share price rated appeared first on The Motley Fool UK. There’s a ‘double agent’ hiding in the FTSE… we recommend you buy it! Don’t miss our special stock presentation. It contains details of a UK-listed company our Motley Fool UK analysts are extremely enthusiastic about. They think it’s offering an incredible opportunity to grow your wealth over the long term – at its current price – regardless of what happens in the wider market. That’s why they’re referring to it as the FTSE’s ‘double agent’. Because they believe it’s working both with the market… And against it. To find out why we think you should add it to your portfolio today… Click here to get access to our presentation, and learn how to get the name of this 'double agent'! More reading 3 underperforming FTSE 100 shares to buy today Best stocks to buy now: how I’d invest £2K in the FTSE 100 Unilever versus Reckitt: which is the best stock to buy? Best shares to buy now: 3 stocks I’d snap up today Top dividend stocks for June 2021 Rupert Hargreaves owns shares of Diageo and Unilever. The Motley Fool UK has recommended Diageo and Unilever. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
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  14. Dividend shares: how I’d invest to try to earn £1k a month in passive income (21/08/2021 - The Motley Fool UK)
    I believe owning income stocks is one of the best ways to generate a passive income. Indeed, this is an approach I already use. I have been investing a few hundred pounds a month to build a portfolio of dividend shares that have the potential to provide a steady stream of income. The one downside of using this approach is that dividend income is never guaranteed. Dividends are paid out of company profits. Therefore, if profits collapse, management may have to cut the payout. Even after taking this risk into account, I’m comfortable using this strategy to generate a passive income. And I’m targeting an annual passive income of £1,000 a month. Passive income stocks A couple of approaches are available to investors who want to buy stocks for a passive income portfolio. They can either purchase equity funds, investment trusts, bond funds or stocks and bonds directly. I’ve been using the direct approach. I’m acquiring a basket of income stocks, which I believe have attractive passive income credentials. However, buying single stocks can be a precarious income approach. As such, I’ve been buying a diversified portfolio of shares. At one end of the portfolio, I’ve been buying high-income FTSE 100 stocks. Some examples include Persimmon and British American Tobacco. These shares could yield as much as 8% in the year ahead, according to analyst estimates. I’m also looking at BHP and Rio Tinto. These are more of a short-term investment. Both companies are currently profiting from record-high commodity prices. These have helped them generate vast amounts of cash, and they’re returning a large chunk of these excess profits to shareholders. Rio recently announced its largest-ever dividend. While these yields are attractive, I’m well aware commodity prices can fall as fast as they rise. It’s unlikely these record payouts will last forever. Still, I’d like to make the most of these companies’ good fortunes in the meantime. Middle of the road As well as the high-yield stocks outlined above, I’ve also been buying companies with lower yields. While not always the case, it’s often true that firms with lower yields have lower payout ratios. Therefore, there’s more room to increase the dividend in the long term. I think this is a good trade-off for a passive income portfolio. Some examples of these companies I’ve been buying include Diageo, Unilever and Reckitt. All of these firms yield 2% to around 3.5%. I think real estate investment trusts (REITs) also have a place in my portfolio. While commercial property values have taken a hit recently, companies are restoring their dividends. The most prominent REITs I’ve been buying are Landsec and British Land. These stocks are projected to yield 3.7% and 2.8% respectively. I’m targeting a 4% yield on my portfolio. According to my figures, this means I’ll need to put away £300,000 to generate an income of £12,000 a year, or £1,000 a month. Given plenty of time and using the above approach, I think it could be possible for me to hit that target. The post Dividend shares: how I’d invest to try to earn £1k a month in passive income appeared first on The Motley Fool UK. Inflation Is Coming: 3 Shares To Try And Hedge Against Rising Prices Make no mistake… inflation is coming. Some people are running scared, but there’s one thing we believe we should avoid doing at all costs when inflation hits… and that’s doing nothing. Money that just sits in the bank can often lose value each and every year. But to savvy savers and investors, where to consider putting their money is the million-dollar question. That’s why we’ve put together a brand-new special report that uncovers 3 of our top UK and US share ideas to try and best hedge against inflation… …because no matter what the economy is doing, a savvy investor will want their money working for them, inflation or not! Best of all, we’re giving this report away completely FREE today! Simply click here, enter your email address, and we’ll send it to you right away. More reading The Helium One share price is up 15%! Would I buy the stock? 2 penny stocks I’d buy right now 1 outrageously simple tip from Warren Buffett I wish I’d known sooner The S&P 500 tumbled down this week. Here’s what I’m doing with my US shares The Netflix share price rockets! Here’s what I’m doing with my shares Rupert Hargreaves owns shares of British American Tobacco, British Land Co, Diageo, Landsec, Reckitt plc, and Unilever. The Motley Fool UK has recommended British American Tobacco, British Land Co, Diageo, Landsec, and Unilever. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
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  15. The Unilever share price has increased 14% in 3 months. Should I buy? (23/06/2021 - The Motley Fool UK)
    FTSE 100 incumbent Unilever (LSE:ULVR) is one of the largest consumer goods firms in the world and the Unilever share price has increased 14% in the past three months. But why is this and should I buy the shares for my own portfolio? Despite its rise, the share price is currently below pre-market crash levels. In February 2020, the shares were trading for 4,696p per share. As I write, they’re at 4,283p. In February this year, the share price slumped as 2020 full-year results were announced and certain indicators disappointed the market. But since a three-year low of 3,733p per share in March, the price has risen 14% in three months. Q1 results boost the Unilever share price Clearly, the Unilever share price recovered primarily due to Q1 results announced at the end of May. These results showed year-on-year revenue growth of 5.7%. Higher sales volumes accounted for the majority of growth.  Unilever’s food and refreshment segment saw sales growth of nearly 10% and management delivered an optimistic outlook. Chief executive Alan Jope said the start of the year was “good”, and projected sales growth in 2021 overall of between 3% and 5%. Past performance is never a guarantee of future performance, of course. But it’s worth looking back sometimes to help my understanding of a particular stock, and I’ve done this with Unilever. The past four years have seen revenues of €50bn or over consistently. Net income has also not gone below €5bn in the same period. And cash flow has increased year-on-year for the past four years too. Despite all that, the group’s mixed recent performance has clearly hindered the Unilever share price from rising higher. Yet I believe Unilever has the size, income and past record to navigate any challenges and slumps. With a global footprint and diversified products, it pumps mega-millions into research, development and marketing, and this should help future growth. One of the best FTSE 100 shares to buy The shares do come with risks and challenges that can affect the Unilever share price. Competition is fierce in the fast-moving consumer goods sector and always increasing. And rising costs are an issue. The price of commodities has increased and this may affect manufacturing costs. Passing price rises on to customers could hurt sales and profits. That said, these challenges aren’t new to Unilever and while post-pandemic cost rises do worry me, many of its competitors are facing the same problems  Despite its challenges, I do like Unilever as a FTSE 100 stock. It offers a dividend yield of 3.4% and trades at a forward price-to-earnings ratio of 20 — that’s high, but not for a stock of this quality, I feel. I believe its current price is an attractive entry point for my portfolio. Q2 and half-year results are due next month and I think the Unilever share price will increase, if the figures anything but bad. With that in mind, I would buy the shares for my portfolio today. The post The Unilever share price has increased 14% in 3 months. Should I buy? appeared first on The Motley Fool UK. I like Unilever for my portfolio but check out the report below for 5 stocks for trying to build wealth after 50… 5 Stocks For Trying To Build Wealth After 50 Markets around the world are reeling from the coronavirus pandemic… And with so many great companies trading at what look to be ‘discount-bin’ prices, now could be the time for savvy investors to snap up some potential bargains. But whether you’re a newbie investor or a seasoned pro, deciding which stocks to add to your shopping list can be daunting prospect during such unprecedented times. Fortunately, The Motley Fool is here to help: our UK Chief Investment Officer and his analyst team have short-listed five companies that they believe STILL boast significant long-term growth prospects despite the global lock-down… You see, here at The Motley Fool we don’t believe “over-trading” is the right path to financial freedom in retirement; instead, we advocate buying and holding (for AT LEAST three to five years) 15 or more quality companies, with shareholder-focused management teams at the helm. That’s why we’re sharing the names of all five of these companies in a special investing report that you can download today for FREE. If you’re 50 or over, we believe these stocks could be a great fit for any well-diversified portfolio, and that you can consider building a position in all five right away. Click here to claim your free copy of this special investing report now! More reading The Diageo vs Unilever share price rated 3 underperforming FTSE 100 shares to buy today Unilever versus Reckitt: which is the best stock to buy? Best shares to buy now: 3 stocks I’d snap up today Top dividend stocks for June 2021 Jabran Khan has no position in any shares mentioned. The Motley Fool UK has recommended Unilever. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
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  16. How Warren Buffett’s advice could help me invest £1k (13/06/2021 - The Motley Fool UK)
    Warren Buffett is one of the greatest investors of all time. Over the past 70 years, he’s grown an initial investment of $100,000 into a company with more than $700bn of assets. I think anyone can learn a lot by looking at the famous investor’s career. I’ve certainly learnt a lot. Indeed, if I had to invest a lump sum of £1,000 today, I’d follow his advice. Warren Buffett’s advice Buffett believes investors should only buy high-quality businesses. These are companies with substantial competitive advantages, which can be anything from significant economies of scale to global brands. Two of his favourite companies are Apple and Coca-Cola. Both of these organisations have incredible brands, which are recognised the world over. That’s helped them grow year after year and generate enormous profits for their investors. He focuses on these high-quality companies and ignores low-quality businesses, no matter how cheap they might be. Indeed, he once said: “It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price.“ If I had to invest a lump sum of £1,000 today, I’d follow this advice. However, rather than picking winners on valuation alone, I’d seek out the market’s best businesses and focus on profit margins, competitive advantages and brand strength. Buffett also places a lot of emphasis on the strength of a company’s management. He’s looking for highly competent managers that can run a business through thick and thin, as well as coping with everything the world throws at them. And he also tends to avoid commodity companies such as oil and mining corporations. The reason why he tends to stay away from the sectors is simple. Commodity prices can be highly volatile. As such, these companies have to hope for the best that prices remain high and above production costs. That involves a great deal of guesswork, which even Buffett may struggle with. An investment framework Using all of the above, I’ve been able to put together an investment framework built on his advice. This framework is relatively simple. It suggests I should only target stocks with strong managers, wide profit margins, a robust competitive advantage, and avoid resource companies. With this framework in mind, I’d invest my £1,000 in companies like Unilever and Reckitt. Both of these enterprises own portfolios of billion-dollar brands. That’s their competitive advantage. Highly experienced management teams also run them and, most importantly, they can set their own prices. Of course, this strategy might not be suitable for all investors. Finding good companies can be incredibly challenging. Even Buffett gets it wrong occasionally. That’s why he’s also advocated using a low-cost passive index tracker fund for investors who might not have the time or experience to find individual businesses. This strategy might be more suitable for less experienced investors. However, if I had an investment of £1,000 today, I would follow Buffett’s advice and buy Unilever and Reckitt. The post How Warren Buffett’s advice could help me invest £1k appeared first on The Motley Fool UK. FREE REPORT: Why this £5 stock could be set to surge Are you on the lookout for UK growth stocks? If so, get this FREE no-strings report now. While it’s available: you’ll discover what we think is a top growth stock for the decade ahead. And the performance of this company really is stunning. In 2019, it returned £150million to shareholders through buybacks and dividends. We believe its financial position is about as solid as anything we’ve seen. Since 2016, annual revenues increased 31% In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259 Operating cash flow is up 47%. (Even its operating margins are rising every year!) Quite simply, we believe it’s a fantastic Foolish growth pick. What’s more, it deserves your attention today. So please don’t wait another moment. Get the full details on this £5 stock now – while your report is free. More reading How I’d invest £5k in cheap UK dividend shares Penny stocks: 3 UK shares I’d buy now Bargain or bust: will the Petrofac share price bounce back? 5 British stocks I’d buy 2 UK shares to buy with £2k Rupert Hargreaves owns shares in Reckitt and Unilever. The Motley Fool UK owns shares of and has recommended Apple. The Motley Fool UK has recommended Unilever and recommends the following options: short March 2023 $130 calls on Apple and long March 2023 $120 calls on Apple. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
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  17. : Deodorant sales fall at Unilever as consumers abandon personal hygiene in lockdown, but stock rises 3.11% (29/04/2021 - Market Watch)
    The Ben & Jerry’s owner will buy back up to €3 billion of shares from May.
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  18. Kiromic BioPharma prices 8M share public offering; shares fall 21% after-hours (30/06/2021 - Seeking Alpha)

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  19. Why isn’t the Unilever share price rising faster? (17/05/2021 - The Motley Fool UK)
    Over the past year, many companies have seen their share prices soar. But Unilever (LSE: ULVR) has barely shifted overall. It has moved up and down, but the Unilever share price today is just 2% higher than it was a year ago. Here I consider why the Unilever share price has not been rising faster – and what might come next. Growth versus value Sometimes the stock market seems to favour ‘growth’ stocks that have a strong story about increasing revenue, such as digital marketing agency S4 Capital. At other times, many investors hunt for ‘value’ stocks — shares in companies that trade relatively cheaply considering their profits. Growth stocks have been popular lately. That has meant less investor capital chasing UK value shares. Unilever’s competitor Reckitt, for example, is down 11% over the past year even though it owns brands that experienced a pandemic sales surge, such as Dettol. I see some signs that value shares are coming back into vogue. If that happens, the Unilever share price might move up. But a risk is that value shares in general remain out of favour with many investors. That could dampen upward share price movement for Unilever too. Revenue and the Unilever share price As a global business, Unilever is exposed to currency exchange rate fluctuations. That can work to its disadvantage. Consider its first quarter, for example. The underlying sales growth was 5.7%, which is pretty solid in my view. So why did turnover actually contract 0.9%? In short, while sales grew, the money generated when converted into euros shrunk. That is typically because of a less favourable exchange rate. Shrinking revenues help to explain a lacklustre Unilever share price performance. With its global footprint, there is a clear risk negative exchange rate impacts could hit the company again in the future. Sometimes, though, the opposite can happen: a positive shift in exchange rates can boost revenue in excess of actual sales growth. Lockdown impact Unilever doesn’t just sell to consumers. It also markets food brands like Magnum and Hellmann’s to commercial foodservice customers such as restaurants. As lockdowns in various markets continue to hamper demand, the company has suffered a sales impact. Low single-digit growth in the first quarter in the company’s food solutions business masked mixed performance. The Chinese market grew, but some countries where lockdown restrictions remained in place reported sales falls. This sales impact continues to be a risk for the Unilever share price, in my view. Closures in foodservice channels could continue to reduce revenues. At some point, I expect end markets to open up again fully – but it could take a while. My next move on the Unilever share price As a Unilever investor, one way for me to see its recent share price performance is as a disappointment. I would have hoped the company’s share price would move up and boost the value of my holding. But an alternative analytical lens is to see it as a continued buying opportunity. I can buy the company at roughly the price I could a year ago. But I think the future demand picture now is much clearer than it was then, which I see as a positive development. That’s why I continue to see the company as attractive and would consider buying more Unilever shares now. A Top Share with Enormous Growth Potential Savvy investors like you won’t want to miss out on this timely opportunity… Here’s your chance to discover exactly what has got our Motley Fool UK analyst all fired up about this ‘pure-play’ online business (yes, despite the pandemic!). Not only does this company enjoy a dominant market-leading position… But its capital-light, highly scalable business model has previously helped it deliver consistently high sales, astounding near-70% margins, and rising shareholder returns … in fact, in 2019 it returned a whopping £150m+ to shareholders in dividends and buybacks! And here’s the really exciting part… While COVID-19 may have thrown the company a curveball, management have acted swiftly to ensure this business is as well placed as it can be to ride out the current period of uncertainty… in fact, our analyst believes it should come roaring back to life, just as soon as normal economic activity resumes. That’s why we think now could be the perfect time for you to start building your own stake in this exceptional business – especially given the shares look to be trading on a fairly undemanding valuation for the year to March 2021. Click here to claim your copy of this special report now — and we’ll tell you the name of this Top Growth Share… free of charge! More reading I’d buy these 2 UK stocks today using Warren Buffett principles Stock market investing: should I worry about a FTSE flash crash? 2 FTSE 100 shares I’d look to buy and hold until 2024 Which of these 3 FTSE 100 ‘safe stocks’ would I buy now? The Unilever (ULVR) share price has jumped. I’d buy now! christopherruane owns shares of S4 Capital plc and Unilever. The Motley Fool UK has recommended Unilever. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Why isn’t the Unilever share price rising faster? appeared first on The Motley Fool UK.
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  20. Will the Unilever share price keep falling? (08/02/2021 - The Motley Fool UK)
    Consumer goods group Unilever (LSE: ULVR) is near the top of broker Hargreaves Lansdown‘s ‘Top of the Stocks’ chart this week. It seems investors have been buying into the share price dip which followed last week’s annual results. I’ve just added Unilever back onto my buy list too. I reckon that owning shares in the producer of brands including Hellmann’s, Lipton, Domestos and Persil could boost my investment returns over the coming years. Why are Unilever shares falling? Unilever released its 2020 annual results last week. These figures showed sales fell by 2.4% to €50.7bn, with operating profit down 4.6% to €8.3bn. When profits fall faster than sales, it means profit margins have also fallen. That’s true here. Unilever’s operating margin fell from 16.8% to 16.4% last year. Unilever’s share price also fell after these results were announced. The stock is now down 15% over the last year. This slide may partly be because the market is used to reliable growth from Unilever. The pandemic also hit sales of more profitable products such as ice cream. Covid-19 also added costs to Unilever’s operations and supply chain. On balance, I think the firm’s 2020 results were fairly respectable. However, I think the detailed sales breakdown provided by Unilever does flag up a couple of potential concerns. What could go wrong? One worry for me is that the company was only able to increase average selling prices by 0.3% last year. That’s below inflation in most markets. This suggests to me Unilever’s brands may be having a tough time competing with cheaper own-brand products sold by supermarkets. This is probably the biggest risk I can see for the business. In my household we buy a mix of own-brand and branded products, but price is always a factor. A second more general concern for me is that brands and products can become dated. Unilever spent €6bn on acquisitions last year, up from €1bn in 2019. To some extent, I think that future success will rely on these deals providing attractive returns. That’s not guaranteed. Unilever shares: right price, right time? I can’t predict the future. But I think it’s a fairly safe bet that in 10-20 years’ time, millions of people will still be adding Unilever’s brands to their shopping baskets every week. I expect the group’s broad product portfolio and strong presence in growing markets such as China and India to support many more years of growth. It’s this kind of reliable long-term growth that’s helped Unilever to become the largest business in the FTSE 100, despite its reduced share price. Although 2020 was a difficult year, I still feel confident about the long-term outlook for this business. CEO Alan Jope is staying focused on his strategy of building brands that can deliver growth while staying true to the company’s philosophy of doing good. Unilever’s business is highly profitable and generates reliable cash flows. The shareholder dividend hasn’t been cut for more than 50 years. With Unilever’s share price now down to around 4,000p, the stock has a forecast yield of 3.7%. I’m considering buying the shares for my long-term portfolio. There’s a ‘double agent’ hiding in the FTSE… we recommend you buy it! Don’t miss our special stock presentation. It contains details of a UK-listed company our Motley Fool UK analysts are extremely enthusiastic about. They think it’s offering an incredible opportunity to grow your wealth over the long term – at its current price – regardless of what happens in the wider market. That’s why they’re referring to it as the FTSE’s ‘double agent’. Because they believe it’s working both with the market… And against it. To find out why we think you should add it to your portfolio today… Click here to get access to our presentation, and learn how to get the name of this 'double agent'! More reading GSK vs Unilever: which dividend stock should I buy today? I think these are the best shares I could buy now to make money from the stock market Dividend stocks: 3 I’d buy from the FTSE 100 index The Unilever share price is falling but I’d still buy this top FTSE 100 stock Stock market rally: 2 UK dividend shares I’d buy now to make a passive income Roland Head has no position in any of the shares mentioned. The Motley Fool UK has recommended Hargreaves Lansdown and Unilever. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Will the Unilever share price keep falling? appeared first on The Motley Fool UK.
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  21. Lower returns beckon: here’s how to avoid them (22/05/2021 - The Motley Fool UK)
    As you may have noticed, markets are nervous. Having finally passed the 7000 mark in mid-April, the FTSE 100 has bounced around the 7000 level ever since, getting as high as 7130 before collapsing back to 6948. Today, as I write these words, it’s back below 7000 again.   In theory, markets should be more confident now, and not less confident. Despite the arrival of new Covid-19 variants, existing vaccines appear to be proving effective, and economies are gradually reopening. Here in the UK, we can now go on holiday again, visit friends and relatives, and go to our local pubs and restaurants, where we can — gasp — eat and drink inside, rather than in a chilly marquee erected in a garden or car park. A return to rising prices Yet the resumption of all this economic activity has a nasty sting in the tail: inflation. Simply put, after being largely throttled back in very early 2020, expectations of surging business activity have led many observers to expect surging prices, too — starting with oil, plastics, metals, building materials, and commodities.   In the United States, those expectations are already being borne out.   Warren Buffett, for instance, has admitted to being caught out. Many people think of his Berkshire Hathaway (NYSE: BRK.B) investment vehicle as a fund, holding stakes in Coca-Cola, Procter & Gamble, and Kraft Heinz. So it does — but it also owns almost a hundred businesses outright, which gives Buffett excellent insight into United States economic activity long before it shows up in the official statistics.   And in early May, Buffett told Berkshire Hathaway investors at their annual meeting that the American economy was running “red hot”.   “We’re seeing very substantial inflation,” the Financial Times reported him as saying. “It’s very interesting. We’re raising prices. People are raising prices to us, and it’s being accepted.” Squeezed returns For investors, inflation isn’t good news.   The real inflation-adjusted returns from fixed income investments — bonds and gilts, in other words — fall, pushing down prices and pushing up yields.   Institutional investors respond by then increasing their purchases of fixed-income investments, and lowering the amount of equity investments they hold. The sell-off drives share prices down, as we’ve been seeing. And it’s also the case that returns from equity investments can fall directly, as margins are squeezed through companies being unable to raise prices in line with the cost increases that they’re experiencing. Household cleaning products manufacturer McBride, for instance, recently warned that its full year profits will be 15% lower than it expected as recently as March. The reason? “Rapid, significant, and sustained” price rises in its raw material costs. What to do? The good news is that not all stocks are impacted by inflation to the same extent. So it’s possible to sidestep some of inflation’s worst ravages in terms of the pain to your portfolio, and to your income stream. Stocks with strong brands, for instance, have considerable pricing power. Better still are defensive stocks with strong brands — companies such as Unilever and Reckitt, for instance, or Diageo. Property and infrastructure often holds up well, too — especially when rents and returns are linked to inflation as a reference point. Take a real-estate investment trust such as Primary Health Properties, for instance, which owns and rents out doctors’ surgeries. Inflation won’t do much damage there. Likewise, utilities can be a safe home, as regulators take inflation into account when setting acceptable returns. Retailers with strong brands, too, can be relatively immune from inflation. Likewise pharmaceutical companies.   In short, there’s no dearth of options. Down the pub, the pundits might drone about inflation-linked savings products from NS&I — but with some judicious stock selection, we stock market investors can look to realise much better returns. Much, much better returns. There’s a ‘double agent’ hiding in the FTSE… we recommend you buy it! Don’t miss our special stock presentation. It contains details of a UK-listed company our Motley Fool UK analysts are extremely enthusiastic about. They think it’s offering an incredible opportunity to grow your wealth over the long term – at its current price – regardless of what happens in the wider market. That’s why they’re referring to it as the FTSE’s ‘double agent’. Because they believe it’s working both with the market… And against it. To find out why we think you should add it to your portfolio today… Click here to get access to our presentation, and learn how to get the name of this 'double agent'! More reading Can the stock market rally continue? Why now is a great time for me to buy Cineworld shares The easyJet share price is falling: should I buy now? The Argo Blockchain (ARB) share price has halved. Can it recover? The Trainline share price steadies after Thursday’s 20% crash. Should I buy? Malcolm owns shares in Unilever, Reckitt, and Primary Health Properties. The Motley Fool UK has recommended Diageo, Primary Health Properties, and Unilever. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Lower returns beckon: here’s how to avoid them appeared first on The Motley Fool UK.
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  22. Warren Buffett says to do this if you want to make money from stocks (28/08/2021 - The Motley Fool UK)
    Warren Buffett is rightly acclaimed as one, if not the, best investor of all time. His company, Berkshire Hathaway, run with business partner Charlie Munger, has stood the test of time and made its owners and investors a fortune. What’s the secret sauce? “I started building this little snowball at the top of a very long hill. The trick to having a very long hill is either starting very young or living to be very old,” Buffett said at Berkshire’s 1999 annual meeting.  The secret sauce to Buffett’s investing style is to think when he invests, that he’s becoming an owner of the business. He doesn’t view shares as abstract things to be bought and sold for a quick buck. Indeed, this article shows six stocks where he has made more than 1,000% return. Shares like Coca-Cola, he has held for decades. Adopting a long-term mindset and investing only in the very best businesses, helps Warren Buffett to feel the benefits of compounding. That’s when investors earn more and more interest or income each year. Dividends reinvested into buying more shares in a company creates a snowball effect that can produce staggering returns over a long timeframe. A stock Warren Buffett would like  I think Reckitt (LSE: RKT), the consumer goods company, potentially fits the profile of a long-term Buffettesque investment. I own shares – and intend to for many more years to come – given the strong brands, international sales, and investment in marketing and branding. Buffett backed the Kraft-Heinz bid to take over Unilever back in February 2017, so we know he likes consumer goods companies. He also like strong brands, which Reckitt has. Right now the shares are well down from when they peaked in 2020 – potentially representing a buying opportunity. The main reason for the fall seems to be investors expecting that demand for cleaning products will subside, so there was a Covid boost for Reckitt last year. Looking longer term, does it matter if cleaning sales normalise this year and into the future? I don’t think so, and now the shares seem pretty fairly valued. I’ll be very likely to add to my holding with the shares now on a forward price-to-earnings ratio of 18, which is the same as competitor Unilever. Making money from stocks like Warren Buffett Beyond the power of compounding I think there are three other lessons from Warren Buffett’s investing career that it’s worth remembering: It’s best to invest in businesses that can be understood Invest in businesses with favourable long-term prospects Investors should be patient and buy when a company’s share price is fair I intend to follow Warren Buffett’s advice to make money from stocks. My performance is unlikely to come near replicating his, but if it helps me avoid big mistakes and find great companies, then I think it’ll go a long way towards making me a successful investor. The post Warren Buffett says to do this if you want to make money from stocks appeared first on The Motley Fool UK. 5 Stocks For Trying To Build Wealth After 50 Markets around the world are reeling from the coronavirus pandemic… And with so many great companies trading at what look to be ‘discount-bin’ prices, now could be the time for savvy investors to snap up some potential bargains. But whether you’re a newbie investor or a seasoned pro, deciding which stocks to add to your shopping list can be daunting prospect during such unprecedented times. Fortunately, The Motley Fool is here to help: our UK Chief Investment Officer and his analyst team have short-listed five companies that they believe STILL boast significant long-term growth prospects despite the global lock-down… You see, here at The Motley Fool we don’t believe “over-trading” is the right path to financial freedom in retirement; instead, we advocate buying and holding (for AT LEAST three to five years) 15 or more quality companies, with shareholder-focused management teams at the helm. That’s why we’re sharing the names of all five of these companies in a special investing report that you can download today for FREE. If you’re 50 or over, we believe these stocks could be a great fit for any well-diversified portfolio, and that you can consider building a position in all five right away. Click here to claim your free copy of this special investing report now! More reading 1 beaten down UK growth share to buy right now Mr Market has a meltdown Investors are buying this FTSE 100 stock. Should I? FTSE 100: 3 no-brainer shares to buy now Andy Ross owns shares in Reckitt. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
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  23. The Unilever share price: 5 reasons I’d buy the stock (26/03/2021 - The Motley Fool UK)
    The Unilever (LSE: ULVR) share price is one of my favourite investments in the FTSE 100. Here are the five reasons I’d buy more of the stock today. Household names The company owns a portfolio of well-known brands, many of which are household names. Brands such as Marmite, Ben and Jerry’s and Radox. While these brands do face competition in their respective sectors, they are well established in the minds of consumers. As such, I believe that if Unilever continues to invest in these products, they should remain household staples. This sort of brand recognition is an incredible competitive advantage for the group. Large profit margins The company’s strong profit margins have long supported the Unilever share price. Thanks to its portfolio of recognisable brands, which consumers are generally happy to pay more for, its profit margins are significant. For the past five years, the group’s profit margin has averaged 17.2%, that’s compared to the average of around 5% for all London-listed businesses.  Unilever share price returns Unilever’s fat profit margins allow the business to invest substantial sums in marketing and research and development. They also provide enough cash for significant shareholder returns. At the time of writing, the stock offers a dividend yield of 3.6%. Over the past five years, the company’s dividend has grown at a rate of around 7% per annum. There’s no guarantee this trend will continue, but I think it shows the income potential of the Unilever share price.  International diversification  More than 50% of Unilever’s sales come from developing and emerging markets. The company has established subsidiaries in many markets, such as Unilever India, which is well known across its home market. This is another competitive advantage that has allowed the business to outperform other Western peers in these regions. While having a local presence doesn’t always guarantee long-term success, it does indicate Unilever can respond faster to local trends.  Pricing power The combination of the company’s strong brand recognition among consumers and knowledge of local markets means it has incredible pricing power. Management can increase or decrease prices without having to worry too much about losing sales. This has helped the business maintain its profit margins and should enable the corporation to increase prices if it faces threats such as rising input costs and inflation.  Risks facing the Unilever share price  These are probably the two most significant risks facing the Unilever share price right now. Rising inflation could erode the company’s profit margins, although its ability to increase prices may help the business deal with this headwind. Higher labour costs could also reduce margins and increased costs. Then there’s competition to consider. Unilever is facing increasing competition from opportunist and more ethical brands. This opposition could weigh on growth in the medium to long term.  Despite these challenges, I think the Unilever share price looks incredibly attractive today, based on all of the above. As such, I’d buy the stock for my portfolio. There’s a ‘double agent’ hiding in the FTSE… we recommend you buy it! Don’t miss our special stock presentation. It contains details of a UK-listed company our Motley Fool UK analysts are extremely enthusiastic about. They think it’s offering an incredible opportunity to grow your wealth over the long term – at its current price – regardless of what happens in the wider market. That’s why they’re referring to it as the FTSE’s ‘double agent’. Because they believe it’s working both with the market… And against it. To find out why we think you should add it to your portfolio today… Click here to get access to our presentation, and learn how to get the name of this 'double agent'! More reading UK shares to buy now: 2 I’d choose The ISA deadline is coming. Here are some of the best FTSE 100 stocks I’d buy now Got £750 to invest? Here are my 2 best cheap shares to buy now! 2 UK shares I’d consider buying and holding my whole life Scottish Mortgage Investment Trust: 2 peers paying bigger dividends Rupert Hargreaves owns shares in Unilever. The Motley Fool UK has recommended Unilever. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post The Unilever share price: 5 reasons I’d buy the stock appeared first on The Motley Fool UK.
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  24. My top shares to buy for a passive income (08/09/2021 - The Motley Fool UK)
    I review stocks at both ends of the yield scale when looking for shares to buy for my passive income portfolio. To put it another way, I take a look at shares with both high and low dividend yields to try and find the market’s best income stocks.  I also focus on finding companies in different sectors, so my portfolio has a high level of diversification. In theory, this should reduce the impact a dividend cut will have on my portfolio, although that is not always going to be the case.  This is one of the main risks of using income shares in a passive income strategy. As dividends are paid out of business profits, the dividend may have to be cut if profits decline. As such, there is never any guarantee companies will pay investors an income.  Shares to buy One sector I want to have exposure to in my passive income portfolio is the utility sector. I would buy a handful of companies in this sector, including United Utilities, National Grid and Severn Trent. These three stocks support dividend yields of between 3.6% and 5.1% at the time of writing.  The utility sector is one of the most defensive on the market. Consumers will always need power and water. What’s more, building infrastructure such as reservoirs and power cables is incredibly costly, which suggests those companies with money and experience in the sector have an advantage.  That said, while I believe these are some of the best shares to buy for passive income, they are highly regulated. If regulators want to reduce the amount of profit these organisations earn, they can do so. This would likely lead to reduced shareholder returns.  Passive income stocks As well as the utility sector, I would also buy exposure to the consumer sector for my income portfolio. I would add stocks such as Unilever and Reckitt as well as Diageo. All of these enterprises own portfolios of well-regarded brands, and they have economies of scale. They offer dividend yields of between 2.1% and 3%. And I would also want to gain exposure to the healthcare sector for my passive income portfolio. Some of my favourite healthcare stocks on the market, which I would be happy to buy today, are AstraZeneca and Hikma. These stocks offer yields of between 1.4% and 2.5%. I think the defensive nature of these companies more than offsets the low yields on offer.  While I am confident that the healthcare and consumer stocks outlined above would be great additions to my passive income portfolio, I am wary of rising inflation. Higher costs could impact profit margins, which may force their management’s to reduce shareholder payouts.  I will be keeping an eye on these risks as we advance. In the meantime, I would be happy to buy all of the above companies today.  The post My top shares to buy for a passive income appeared first on The Motley Fool UK. Inflation Is Coming: 3 Shares To Try And Hedge Against Rising Prices Make no mistake… inflation is coming. Some people are running scared, but there’s one thing we believe we should avoid doing at all costs when inflation hits… and that’s doing nothing. Money that just sits in the bank can often lose value each and every year. But to savvy savers and investors, where to consider putting their money is the million-dollar question. That’s why we’ve put together a brand-new special report that uncovers 3 of our top UK and US share ideas to try and best hedge against inflation… …because no matter what the economy is doing, a savvy investor will want their money working for them, inflation or not! Best of all, we’re giving this report away completely FREE today! Simply click here, enter your email address, and we’ll send it to you right away. More reading Could this rumoured merger send the Harbour Energy share price flying again? A small-cap FTSE 250 company to buy now and hold forever FY results: where will the Dunelm share price go next? What does the new health and social care levy mean for me? The best shares to buy now with £5,000 Rupert Hargreaves owns shares of Diageo, Reckitt plc, and Unilever. The Motley Fool UK has recommended Diageo, Hikma Pharmaceuticals, National Grid, and Unilever. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
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  25. Was I wrong about these quality stocks or is this a buying opportunity? (27/02/2021 - The Motley Fool UK)
    Fallen stocks damaged by the pandemic have been rocketing upwards. But some of my favourite high-quality defensive shares have been sinking. Was I wrong to be so enthusiastic about those stalwarts, or is this a buying opportunity? At the end of last year, my Motley Fool colleague Tej Kohli pointed out that investors have been shifting their money. And he explained that “rotation is the counter-movement of investor capital from one equity sector into another.” Sinking quality stocks Kohli reckons rotation often occurs between growth and value stocks. And I think we can see signs of that playing out in the American stock market. It is, after all, heavy with technology growth companies. We’ve also seen a bit of rotation from growth stocks here in the UK. But we investors can see trends in the markets by keeping an eye on our own portfolios and watch lists. And I think we’ve maybe been seeing something of a rotation from over-priced quality stocks into lower-quality, cyclical stocks damaged by the pandemic. I’m tempted to use that theory to explain the recent fall in quality shares, such as branded fast-moving consumer goods company Unilever (LSE: ULVR).  The company scores well against quality indicators, but it’s pushing things to describe it as a growth business. City analysts expect a modest advance in earnings of a mid-single-digit percentage in 2022. However, I’ve always liked Unilever because it operates a defensive, cash-generating business. The firm’s well-loved consumer brands tend to keep selling even during economic downturns. That’s why I reckon Unilever is a good candidate for a long-term holding period. But there’s been a problem. For several years, investors pursued the so-called bond-proxy trade. In other words, they looked for alternative investments when interest rates declined. The returns from bonds and cash savings became pitiful. And people started buying defensive shares like Unilever for the shareholder dividends instead. Valuations unwinding? And the buying spree pushed up the share prices and valuations of my favourite defensive stocks such as Unilever. The stock has been weak since last autumn. But even now, I think the valuation looks full. With the share price near 3,821p, the forward-looking earnings multiple is just below 17 for 2022. That strikes me as quite high for a business with lacklustre anticipated earnings. One factor putting pressure on the stock is the soaring value of sterling against the euro. Unilever reports in euros. However, I think it’s possible we could be seeing the start of an unwinding of the bond-proxy valuation premium as investors rotate to stocks recovering from the Covid slump. Several other of my defensive favourites have been falling too. I’m thinking of names such as AstraZeneca, British American Tobacco, GlaxoSmithKline, National Grid, Reckitt Benckiser, Severn Trent, Sage and SSE. If these stocks keep sliding, they could reach a point where the value becomes compelling and a long-term investment could make sense. However, my analysis might be wrong. And the falls could be due to other reasons relating to a deterioration of the prospects of the underlying businesses. Perhaps those reasons will emerge later. But I’m watching these shares closely for now. FREE REPORT: Why this £5 stock could be set to surge Are you on the lookout for UK growth stocks? If so, get this FREE no-strings report now. While it’s available: you’ll discover what we think is a top growth stock for the decade ahead. And the performance of this company really is stunning. In 2019, it returned £150million to shareholders through buybacks and dividends. We believe its financial position is about as solid as anything we’ve seen. Since 2016, annual revenues increased 31% In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259 Operating cash flow is up 47%. (Even its operating margins are rising every year!) Quite simply, we believe it’s a fantastic Foolish growth pick. What’s more, it deserves your attention today. So please don’t wait another moment. Get the full details on this £5 stock now – while your report is free. More reading I buy cheap shares like Warren Buffett buys burgers! I followed Warren Buffett’s approach in buying this share 2 blue-chip UK shares I’d pick now for a growing income The Unilever share price is struggling. I’d buy this FTSE 100 stock now! Why Diageo and Unilever are on my ‘best shares to buy’ list despite this threat Kevin Godbold has no position in any share mentioned. The Motley Fool UK has recommended GlaxoSmithKline, Sage Group, and Unilever. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Was I wrong about these quality stocks or is this a buying opportunity? appeared first on The Motley Fool UK.
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  26. I buy cheap shares like Warren Buffett buys burgers! (27/02/2021 - The Motley Fool UK)
    Billionaire Warren Buffett is regarded as one of the world’s greatest investors. His folksy wisdom has entertained shareholders in his giant conglomerate, Berkshire Hathaway, for decades. Buffett’s advice on a wide range of topics has entered into modern folklore. As a value investor, I’m a huge fan of Buffett. I often look to him for advice on buying cheap shares. Here are two things the Oracle of Omaha has taught me about buying into businesses. 1. Stock up on burgers (and cheap shares) when prices fall In 1997, Buffett asked, “If you plan to eat hamburgers throughout your life and are not a cattle producer, should you wish for higher or lower prices for beef?” In other words, if one wants to buy shares, then one should be delighted when prices fall. Instead, many investors do the opposite: they sell at low prices and buy at high prices. Following Buffett’s advice, I’ve sworn off buying pricey US stocks. Instead, I’m trawling the FTSE 100 looking for ‘fallen angels’ (solid businesses with cheap shares). For example, the share price of drug-maker GlaxoSmithKline (LSE: GSK) has declined for a year and more. On 24 January 2020, the GSK share price spiked to peak at 1,857p. On Friday, it closed at 1,191p, down 666p from this high. That’s a collapse of more than a third (35.9%) in 14 months. It’s also a 52-week low. Today, GSK shares trade on price-to-earnings ratio of 10.6 and an earnings yield of 9.4%. The 80p-a-share dividend equates to a dividend yield of 6.7% a year. But GSK plans to cut this dividend in 2021, as earnings might decline until 2024. Even so, I still see GSK as one of cheapest of cheap shares in the Footsie. Hence, I plan to buy more GSK shares for my family portfolio. 2. Quality is worth paying for Another favourite Buffett quote is, “It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price”. It’s worth paying premium prices to buy into exceptional businesses. But what if you could buy into a brilliant business with cheap shares? For instance, Unilever (LSE: GSK) is one of the British businesses I most admire. The Anglo-Dutch giant is a global Goliath at selling fast-moving consumer goods. Look in your cupboards and you might find several Unilever brands. That’s because these are among the most trusted and widely bought products in the world. Incredibly, 2.5bn people use Unilever products each day. In 2019, Unilever’s revenues were €52bn (£45bn). Who wouldn’t want a piece of that action? Yet, Unilever stock is creeping into ‘cheap shares’ territory. At its 52-week high on 14 October last year, the Unilever share price peaked at £49.44. Today, they are on sale at £37.33. That’s a discount of £12.11 a share — almost a quarter (24.5%) — from the 2020 high. To me, this sell-off smells like an opportunity to buy into a world-class business at a reduced price. Today, ULVR trades on a price-to-earnings ratio of 20.2 and an earnings yield of 5.0%. The dividend yield of 4% exceeds that on offer by the wider FTSE 100. In historic terms, these are lowly ratings for this global leader’s shares. But Unilever had bumper sales boost due to Covid-19  restrictions. Alas, this surge is unlikely to be repeated in 2021–22. Difficult economic conditions could also pressure Unilever’s profits. Nevertheless, Unilever’s cheap shares remain high on my buy list for 2021. A Top Share with Enormous Growth Potential Savvy investors like you won’t want to miss out on this timely opportunity… Here’s your chance to discover exactly what has got our Motley Fool UK analyst all fired up about this ‘pure-play’ online business (yes, despite the pandemic!). Not only does this company enjoy a dominant market-leading position… But its capital-light, highly scalable business model has previously helped it deliver consistently high sales, astounding near-70% margins, and rising shareholder returns … in fact, in 2019 it returned a whopping £150m+ to shareholders in dividends and buybacks! And here’s the really exciting part… While COVID-19 may have thrown the company a curveball, management have acted swiftly to ensure this business is as well placed as it can be to ride out the current period of uncertainty… in fact, our analyst believes it should come roaring back to life, just as soon as normal economic activity resumes. That’s why we think now could be the perfect time for you to start building your own stake in this exceptional business – especially given the shares look to be trading on a fairly undemanding valuation for the year to March 2021. Click here to claim your copy of this special report now — and we’ll tell you the name of this Top Growth Share… free of charge! More reading I’m still buying GlaxoSmithKline stock despite the dividend warning I followed Warren Buffett’s approach in buying this share My 3 favourite dividend shares right now 2 blue-chip UK shares I’d pick now for a growing income The Unilever share price is struggling. I’d buy this FTSE 100 stock now! Cliffdarcy owns shares of GlaxoSmithKline. The Motley Fool UK has recommended GlaxoSmithKline and Unilever. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post I buy cheap shares like Warren Buffett buys burgers! appeared first on The Motley Fool UK.
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  27. Investors are buying this FTSE 100 stock. Should I? (02/08/2021 - The Motley Fool UK)
    I always find it interesting to see which shares are being snapped up by other investors. Last week was no exception. Over the weekend, Hargreaves Lansdown revealed that one of its most popular buys had been FTSE 100 company Reckitt (LSE: RKT). Should I be adding this consumer goods behemoth to my shopping list too?  FTSE 100 laggard Based on recent performance, only contrarians need apply. Reckitt fell almost 12% in value over the previous trading week. All told, this meant that Reckitt’s shares had tumbled 30% since the end of July 2020. Contrast this with a 17% rise in the usually pedestrian FTSE 100. At first glance, this fall seems odd. After all, this is a company that owns Dettol and Lysol — brands that shoppers have been flocking to over the last year as we’ve all become just that little more conscious of keeping things as clean as possible. Unfortunately, it would seem that inflation is beginning to bite. A rise in the price of raw materials in the first six months of 2021 is having a negative impact on profit margins at the FTSE 100 constituent. Factor in the potential for sales of disinfectants to moderate as we emerge from the Covid-19 storm and Reckitt’s loss of momentum makes some sense. Time to buy? I think there are arguments for and against me buying this stock now. The former includes the fact that Reckitt boasts a portfolio of easily recognisable, ‘sticky’ brands (which also includes Air Wick, Calgon and Durex). It seems fair to say that demand for its products will never evaporate, even if cheaper alternatives are available. This gives Reckitt a defensiveness some other companies in the FTSE 100 arguably lack. It also makes the valuation of 19 times forecast earnings tempting, in my opinion.  The dividend stream compensates holders as well. I expect Reckitt to return 175p per share to holders this year. That’s a nice 3.2% yield at today’s share price  — far more than I’d get via a Cash ISA. Although one should not draw too many conclusions from such as small period of trading, it’s worth highlighting that Reckitt didn’t feature in the list of most popular sells last week either. This may suggest that a least some of those buying now have the intention of staying invested for a while.  Ongoing weakness Of course, how long a full recovery takes is up for debate. As things stand, no one can be sure whether inflation is here to stay. If it is, there’s no guarantee Reckitt will be successful in passing on costs to consumers via price hikes. The shares will probably resume their downward momentum if sales decline.  Regardless of this, performance over the long term hasn’t exactly been stellar. Annualised returns at Reckitt have been only slightly better than the FTSE 100 over the last 10 years. Those advocating a no-frills passive approach to investing would use this as proof that buying a specific stock rather than an exchange-traded fund isn’t worth the additional risk. So, the question I need to ask myself is whether I’d get a better result over the next decade. On the fence For now, I’m content to watch Reckitt from the sidelines. While I do think it will eventually recover, I also think there are potentially far better options in the index for me to make money in the meantime. The post Investors are buying this FTSE 100 stock. Should I? appeared first on The Motley Fool UK. 5 Stocks For Trying To Build Wealth After 50 Markets around the world are reeling from the coronavirus pandemic… And with so many great companies trading at what look to be ‘discount-bin’ prices, now could be the time for savvy investors to snap up some potential bargains. But whether you’re a newbie investor or a seasoned pro, deciding which stocks to add to your shopping list can be daunting prospect during such unprecedented times. Fortunately, The Motley Fool is here to help: our UK Chief Investment Officer and his analyst team have short-listed five companies that they believe STILL boast significant long-term growth prospects despite the global lock-down… You see, here at The Motley Fool we don’t believe “over-trading” is the right path to financial freedom in retirement; instead, we advocate buying and holding (for AT LEAST three to five years) 15 or more quality companies, with shareholder-focused management teams at the helm. That’s why we’re sharing the names of all five of these companies in a special investing report that you can download today for FREE. If you’re 50 or over, we believe these stocks could be a great fit for any well-diversified portfolio, and that you can consider building a position in all five right away. Click here to claim your free copy of this special investing report now! More reading FTSE 100: 3 no-brainer shares to buy now Should I buy Reckitt shares after yesterday’s 8% fall? Here’s why I’d buy this surprise FTSE 100 faller today Best stocks to buy now: how I’d invest £2K in the FTSE 100 3 FTSE 100 stocks to buy Paul Summers has no position in any of the shares mentioned. The Motley Fool UK has recommended Hargreaves Lansdown. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
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  28. FTSE 100: 3 no-brainer shares to buy now (01/08/2021 - The Motley Fool UK)
    The FTSE 100 has risen by around 15% over the last year. But it’s still well below the record highs seen shortly before Covid-19 broke cover. I reckon some of the shares in the index look like bargains for a long-term investor like me. Today, I’m going to look at three stocks on my list to buy. Down 29% Shares in FTSE 100 consumer goods firm Reckitt (LSE: RKT) soared last year as sales of Dettol and other cleaning products rocketed. But Reckitt’s share price has fallen by 29% over the last 12 months, as the company has warned of rising costs and slowing sales. This news has knocked the shares. But I think it’s an issue that’s affecting all large consumer groups — Unilever recently reported the same issues. Reckitt stock is now trading at levels close to those seen during last year’s crash. I think this is probably too cheap. Although this business faces some challenges, I expect brands such as Strepsils, Durex, and Nurofen to remain reliable sellers in the future. Reckitt shares are now trading on a forecast price/earnings ratio of 18, with a 3% dividend yield. I’d be happy to buy the shares at this level. A FTSE 100 stock with a 4% yield The next stock on my list is Lloyds Banking Group (LSE: LLOY). This business — which includes Halifax, MBNA, Scottish Widow and Lex Autolease — is the UK’s largest mortgage lender.   The latest numbers from the bank suggest it’s continuing to recover well from the impact of the pandemic. The bank’s net income rose by 2% to £7.6bn during the first half of 2021, compared the same period last year. The main risk I can see is that the recession we feared last year may still be on the horizon. This could put Lloyds’ profits under pressure once more and trigger a rise in bad debts. However, I can’t see any sign of this at the moment. Lloyds shares offer a forecast dividend yield of 4% for this year. My analysis suggests that if the economy remains stable, this payout could grow steadily over the next few years. A neat package My final share is one I already own. FTSE 100 packaging group DS Smith (LSE: SMDS) produces paper-based products and manages its own recycling operations. DS Smith was the subject of bid rumours earlier this year. While that approach didn’t work out, I do think there’s a chance the company could be snapped up by a larger rival at some point. However, takeovers are unpredictable things. I’d never buy a stock based on bid hopes alone. Fortunately, DS Smith’s business appears to be performing well and improving. Profits during the second half of last year were well ahead of the equivalent period a year earlier. Brokers expect further gains over the next two years. The rising price of raw materials is hitting this business too. But DS Smith expects to be able to increase its pricing to recover these costs. I believe demand for recyclable packaging is likely to continue rising for the foreseeable future. To me, DS Smith shares look reasonably priced at current levels. I’d be happy to buy more today. The post FTSE 100: 3 no-brainer shares to buy now appeared first on The Motley Fool UK. One FTSE “Snowball Stock” With Runaway Revenues Looking for new share ideas? Grab this FREE report now. Inside, you discover one FTSE company with a runaway snowball of profits. From 2015-2019… Revenues increased 38.6%. Its net income went up 19.7 times! Since 2012, revenues from regular users have almost DOUBLED The opportunity here really is astounding. In fact, one of its own board members recently snapped up 25,000 shares using their own money… So why sit on the side lines a minute longer? You could have the full details on this company right now. Grab your free report – while it’s online. More reading Top British stocks for August Despite a strong Q2, the Lloyds share price remains weak. Is this a buying opportunity? The Lloyds share price drops, despite a dividend comeback Lloyds shares: 3 reasons I would, and wouldn’t, buy this FTSE 100 stock What’s next for the Lloyds share price? Roland Head owns shares of DS Smith and Unilever. The Motley Fool UK has recommended DS Smith, Lloyds Banking Group, and Unilever. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
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  29. The ULVR share price is under 4,000p. Here’s what I’d do (22/02/2021 - The Motley Fool UK)
    The Unilever (LSE:ULVR) share price hasn’t done well this year. The stock is down from around 4,800p in November of last year to around 3,900p currently. Although there are many reasons for the decline, here are some key reasons why I think the ULVR share price fell and what I’d do as a result. Why I think the ULVR share price weakened recently I reckon the ULVR share price has fallen for two reasons. First, I think stock rotation could have something to do with Unilever’s decline. Given its defensive position, many larger institutional investors may have gone into Unilever as a ‘safe haven’ during the first part of the pandemic, when things were very uncertain. Given that it’s a leading consumer staple whose main products don’t cost very much, many investors likely reasoned that the pandemic wouldn’t greatly affect Unilever’s demand. With the better-than-expected initial Covid-19 vaccine news which brought more certainty, however, some institutions may have rotated out of Unilever and into more cyclical stocks. Indeed, ULVR shares began declining in November of last year. That is right around the time that Pfizer announced that its vaccine candidate was around 95% effective (against the initial Covid-19 strain). Second, I reckon Unilever’s annual result report released early February may have missed the market’s estimates. For the 2020 year, annual sales fell 2.4% to €50.7bn and operating profit fell 4.6% to €8.3bn. As my colleague Roland Head pointed out, one particular item of note was that the company was only able to raise average selling prices by 0.3%. The rather soft increase in average selling prices could indicate increased competitiveness for Unilever’s products. What I’d do In terms of the ULVR share price, the sector rotation isn’t a big issue to me. Eventually all the institutions that want to rotate out will leave. As a result, that downward pressure on the stock due to the rotation will wane. At some point, the market will judge Unilever on its fundamentals. To me, Unilever’s fundamentals are attractive in the long term given the company’s exposure to emerging markets. I’m not concerned about the earnings report either. On a long enough time horizon, companies will have good earnings reports and bad earnings reports. Just because Unilever’s earnings report failed to meet some expectations doesn’t mean its long-term prospects have worsened. In terms of those long-term prospects, I think Unilever is still attractive given its marketing savvy and scale. I also like its large emerging markets operations. Although Unilever will likely continue to face tough competition that’s in many instances cheaper, the company has had a long history of growing regardless, and I reckon management will make the right moves to continue growing sales and profit in the long run. With the ULVR share price now lower than before, I’d still buy. With this said, I don’t know when the stock will bounce back because I don’t know when the rotation will end or when the company’s results will beat estimates. It could be a while. If management makes a bad M&A deal or if the company doesn’t do as well as expected against competition, the ULVR share price could underperform in the long term as well. A Top Share with Enormous Growth Potential Savvy investors like you won’t want to miss out on this timely opportunity… Here’s your chance to discover exactly what has got our Motley Fool UK analyst all fired up about this ‘pure-play’ online business (yes, despite the pandemic!). Not only does this company enjoy a dominant market-leading position… But its capital-light, highly scalable business model has previously helped it deliver consistently high sales, astounding near-70% margins, and rising shareholder returns … in fact, in 2019 it returned a whopping £150m+ to shareholders in dividends and buybacks! And here’s the really exciting part… While COVID-19 may have thrown the company a curveball, management have acted swiftly to ensure this business is as well placed as it can be to ride out the current period of uncertainty… in fact, our analyst believes it should come roaring back to life, just as soon as normal economic activity resumes. That’s why we think now could be the perfect time for you to start building your own stake in this exceptional business – especially given the shares look to be trading on a fairly undemanding valuation for the year to March 2021. Click here to claim your copy of this special report now — and we’ll tell you the name of this Top Growth Share… free of charge! More reading Nick Train likes this FTSE 100 stock. But should I buy? As the Unilever share price continues to fall, I’m still buying the stock I can buy Unilever shares at a lower price than Warren Buffett would have paid! FTSE 100 stocks: a UK share I think will exit Covid-19 in terrific shape Unilever shares: should I buy? Jay Yao has no position in any of the shares mentioned. The Motley Fool UK has recommended Unilever. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post The ULVR share price is under 4,000p. Here’s what I’d do appeared first on The Motley Fool UK.
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  30. The Unilever share price is under 4,000p. Here’s what I’m doing now (10/02/2021 - The Motley Fool UK)
    Unilever (LSE: ULVR) is often been as one of the most reliable and defensive stocks in the FTSE 100. That’s thanks to a powerful portfolio of leading brands, including Dove, Hellmann’s and Magnum. The company also has a strong presence in emerging markets. This has helped it maintain strong profits over the past few years. Nevertheless, although Unilever have proved resilient in the pandemic, its performance has been far from spectacular. A fairly disappointing full-year update has seen the Unilever share price fall below 4,000p for the first time since the stock market crash last year. As such, is this a stock that I’m looking to add to my portfolio? The recent trading update The main disappointment of the recent trading update was the fact that operating profits fell 4.6% to €8.3bn. Although this is by no means a poor performance, it was slightly worse than expected. Indeed, the trading update led to a decline of around 6% in the Unilever share price on the day.  In many ways, I believe this share price drop may have been slightly harsh. This was due to a number of positives that could be taken from the update. For example, the company also revealed that free cash flow had risen €1.5bn from 2019 to €7.7bn. This reflects its objective to preserve cash. It also allowed Unilever to increase the fourth quarter dividend by 4% to 37.6p. At a time of dividend cuts, the fact that Unilever comfortably managed to raise its payout shows confidence in the company’s future. A dividend yield of nearly 4% is also very tempting to me. What do I think the future holds? Last year, Unilever announced it had completed the unification of its group legal structure under a single, UK-headquartered, parent company. This ultimately creates a simpler company and gives it more flexibility. As such, I expect a larger number of both acquisitions and brand sell-offs over the next few years, as the company ensures that it adapts to a post-Covid world. The group has already signalled its intention to spin off its tea operations, either through a separate listing on the stock exchange or a sale of the unit. I’m encouraged to see change within the business, because I believe that this could have a positive effect on the Unilever share price in the future. Restructuring comes with costs though, and these are estimated to be around €1bn for 2020 and 2022. This may be detrimental to profits and further decrease profit margins. A price-to-earnings ratio of around 20 doesn’t seem like a bargain either, so there are still issues associated with the stock. What am I doing with Unilever shares? Right now, I’m just keeping a firm eye on the Unilever share price. While I do think that it’s fairly good value at the moment, there are still obstacles to overcome. One of my main worries is the firm’s current issues in growing profits. As such, I’m not going to buy the shares right now, but it’s still one I’m looking at.  One stock for a post-Covid world… Covid-19 is ripping the investment world in two… Some companies have seen exploding cash-flows, soaring valuations and record results… …Others are scrimping and suffering. Entire industries look to be going extinct. Such world-changing events may only happen once in a lifetime. And it seems there’s no middle ground. Financially, you’ll want to learn how to get positioned on the winning side. That’s why our expert analysts have put together this special report. If the pandemic has completely changed our lives forever, then they believe that this stock, hidden inside the tech-heavy NASDAQ, could be set for monstrous gains… Click here to claim your copy now — and we’ll tell you the name of this US stock… free of charge! More reading Will the Unilever share price keep falling? GSK vs Unilever: which dividend stock should I buy today? I think these are the best shares I could buy now to make money from the stock market Dividend stocks: 3 I’d buy from the FTSE 100 index The Unilever share price is falling but I’d still buy this top FTSE 100 stock Stuart Blair has no position in any of the shares mentioned. The Motley Fool UK has recommended Unilever. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post The Unilever share price is under 4,000p. Here’s what I’m doing now appeared first on The Motley Fool UK.
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  31. Should I buy Reckitt shares after yesterday’s 8% fall? (28/07/2021 - The Motley Fool UK)
    Reckitt (LSE: RKT) shares plunged more than 8% yesterday. It’s a pretty steep fall following the release of its interim results. Judging by the market reaction, investors weren’t pleased. I first covered the stock in December and wasn’t a buyer then. And I still wouldn’t buy now. Reckitt shares are down 15% since the beginning of 2021 and have fallen over 25% during the past 12 months. Here’s why I’m steering clear. The numbers It wasn’t a great release from the FTSE 100 company. In a nutshell, it reported lower revenue and a loss for the six-month period. Net revenue for the half-year declined by 4.5% to £6.6bn. But it was the sale of IFCN China, its baby formula business, that contributed to the fall. So excluding this division, net sales were only down 2.7% in the half-year and actually increased by 3.6% on a constant currency basis. But all this didn’t detract from the fact that it delivered a GAAP operating loss of £1.8bn. It’s one thing to suffer at the top-line level, but for profits to be hit too is a double whammy. It’s no wonder Reckitt shares were hit so badly yesterday. Exits Investors were obviously disappointed with the results and the exit of IFCN China has proven costly. In fact, the company took almost a £3bn loss on the IFCN disposal against fair value. It also suffered an additional £165m loss from the sale of its Scholl business. To me, this shows that these investments added another negative to the bad numbers. But this month Reckitt completed the purchase of Biofreeze for just over £700m. It said the reason for the acquisition is to allow the firm the gain entry in the fast-growing topical pain treatment category. The consumer goods giant said it sees “exciting potential for geographic expansion and innovation” in Biofreeze. I take this with a pinch of salt. Judging by its performance, its recent exits have cost the firm money. So I’ll wait and see whether this acquisition will be successful. Outlook The outlook doesn’t look too rosy. It warned that cost inflation crept up in the second quarter and that “it will take time to offset this headwind with productivity and pricing actions being implemented in the back half of the year and early next year”. Of course this will impact profitability and it has also lowered its margin guidance. And if that wasn’t enough, Reckitt Benckiser expects its next quarter to be slower when compared to the strong performance in the previous year. I guess it’s warning the market not to expect much growth when it next reports. Bright side Despite all the doom and gloom, it’s not all bad. Reckitt is still seen as stock that held up well during the pandemic and it’s considered by some as a core portfolio constituent. The company also said that it’s seeing positive trends in its cold and flu portfolio, which should help its performance in the fourth quarter. But given that the company is facing challenging conditions, I wouldn’t buy just yet. In fact, I’ve placed the stock on my watch list. The post Should I buy Reckitt shares after yesterday’s 8% fall? appeared first on The Motley Fool UK. “This Stock Could Be Like Buying Amazon in 1997” I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner. But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared. What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations. And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! More reading Here’s why I’d buy this surprise FTSE 100 faller today Best stocks to buy now: how I’d invest £2K in the FTSE 100 3 quality cheap stocks to buy now 2 cheap shares I’d buy in July at deep discounts Nadia Yaqub has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
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  32. Futures Movers: Crude prices fall after Saudi Arabia makes deep cuts to Asian prices (06/09/2021 - Market Watch)
    Oil prices come under pressure Monday, as Saudi Aramco slashed prices for its Asian customers for the first time in four months, and by a bigger amount than expected.
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  33. The Unilever share price is down 13% in 6 months. I’d buy now (26/04/2021 - The Motley Fool UK)
    It’s been a pretty positive six months for the FTSE 100. As I write, the index hovers around 6,927.10 points, up almost a fifth (19.6%) since late October. The Footsie’s gains over this half-year came thanks to news in early November of highly effective Covid-19 vaccines. These reports lit a fire under markets, sending global stock prices soaring. But not all FTSE 100 firms have seen their share prices leap since Halloween. For example, the Unilever (LSE: UVLR) share price has been a laggard and a loser. The Unilever share price slides The Unilever share price actually peaked more than a year and a half ago. On 3 September 2019, the shares hit an all-time closing high of 5,324p. They then declined for months, closing 2019 at 4,350.5p. But there was much worse to come. During March 2020’s Covid-19-inspired market crash, the Unilever share price slumped again. On 16 March 2020, ULVR shares hit their 2020 closing low of 3,726p. This was almost £16 below their September 2019 high. That’s a collapse of three-tenths (30%) in 18 months. Yikes. However, as Covid-19 infections slowed during last summer, the Unilever share price recovered. It rose to close at 4,892p on 14 October, rebounding by almost a third (31.3%) from its March meltdown. So far, so good. ULVR shares disappoint in 2021 Alas, so far this year, the Unilever share price has been limping along. In 2021, it has ranged from a closing high of 4,467p on 6 January to a 2021 closing low of 3,733p on 26 February. As I write (late on Friday), the shares trade around 4,090p. That’s about £8 below their October peak. Yet this still values this Footsie heavyweight at around £108bn, making it one of the largest European companies. Unilever is top of my watchlist The decline of the Unilever share price brings to mind a quote from value investor Ben Graham. He said, “A stock is not just a ticker symbol or an electronic blip; it is an ownership interest in an actual business, with an underlying value that does not depend on its share price”. When I look at Unilever today, I see plenty to like. Unilever is a global Goliath in sales of fast-moving consumer goods (FMCG). It owns hundreds of household-name brands. Globally, 2.5bn people use Unilever products every day. That’s almost one in three people on the planet. It’s also run by an experienced and competent Anglo-Dutch management team. For the record, ULVR stock isn’t exactly cheap, even after declining. With the Unilever share price at 4,090p, it trades on a price-to-earnings ratio of 22.5 and an earnings yield of 4.4%. The dividend yield is 3.6% a year, higher than that of the wider FTSE 100. Indeed, Unilever’s steady quarterly dividends are the mainstay of many an income portfolio worldwide. But this is a class act — and class doesn’t come cheap. Unilever has been a short-term loser, but I see it as a long-term winner. That’s why it’s top of my buy list today. Then again, what if I’m wrong? I see two main impediments to a higher Unilever share price. The first is if the group fails to hit its target for sales growth of 3% to 5% for 2021. Unilever sales saw a stay-at-home boost in 2021 that may not last. Second, underlying operating profits fell 5.8% in 2020 to €9.4bn, due to extra costs — and might slip in 2021. Still, on balance, I’d be a buyer at today’s price! One stock for a post-Covid world… Covid-19 is ripping the investment world in two… Some companies have seen exploding cash-flows, soaring valuations and record results… …Others are scrimping and suffering. Entire industries look to be going extinct. Such world-changing events may only happen once in a lifetime. And it seems there’s no middle ground. Financially, you’ll want to learn how to get positioned on the winning side. That’s why our expert analysts have put together this special report. If the pandemic has completely changed our lives forever, then they believe that this stock, hidden inside the tech-heavy NASDAQ, could be set for monstrous gains… Click here to claim your copy now — and we’ll tell you the name of this US stock… free of charge! More reading 3 British dividend stocks I’d buy for passive income 2 UK penny stocks (and a FTSE 100 share) I’m thinking of buying right now I think these 2 FTSE 100 stocks might be among the best shares to buy today 2 UK dividend stocks I’d buy now for my ISA Why I’d buy these 2 FTSE 100 defensive shares today Cliffdarcy has no position in any of the shares mentioned. The Motley Fool UK has recommended Unilever. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post The Unilever share price is down 13% in 6 months. I’d buy now appeared first on The Motley Fool UK.
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  34. I followed Warren Buffett’s approach in buying this share (25/02/2021 - The Motley Fool UK)
    I recently bought shares in a leading UK company. In making my decision, I was thinking through some of the principles that legendary stockpicker Warren Buffett espouses. I used them to help me pick the company in which I invested. Here I explain how. Think that you’re buying a slice of a company It’s easy to see shares just as a slip of paper with a monetary value. But Warren Buffett reckons it is more appropriate to think of them as a slice of the company. It may be a very small slice, of course, but it is still part of the company. So, instead of just looking at the share price chart, Buffett first asks whether he likes the company and thinks it is attractive to invest in. For example, does it have a strong business model, can it increase prices rather than be forced to cut them, and how large is its defensive moat? That was what I considered in making my choice to buy into Unilever (LSE: ULVR). With its global footprint, technology in everyday products used by billions of consumers, and pricing power, Unilever is the sort of company I think Buffett would like to own. Indeed, he tried to buy it several years ago. It’s the sort of company I decided I would be happy buying a slice of. Value brands for their long-term payback Buffett has invested in a lot of companies with strong brands. One of his most famous investments is Coca Cola, a share he has said he would be happy to keep forever. But he is also a holder in American company Procter & Gamble. Like Unilever, it has a lot of personal care and cleaning brands. One reason Buffett is so attracted to brands is because they give a company pricing power. Instead of being a price taker, forced to accept whatever the market says the price of a commodity is, a brand allows a company to differentiate its product from competitors and so set its own price. A company like Unilever can see profits fall as input costs rise. So pricing power can be helpful. Another reason brands are attractive to investors like Buffett is because they pay back over the long term. Unilever’s decades of brand building efforts through advertising will continue to drive brand loyalty in future, even if they do not spend any more money on it. Warren Buffett likes to invest in the company, not the management Unilever shares have fallen lately and currently offer a dividend yield of 3.9%. That is quite high for a FTSE 100 stalwart. I think that partly reflects investor nervousness that the pandemic sales boom will end, combined with nervousness about the company’s leadership quality. I think the leadership is good, but actually I wouldn’t worry too much even if it wasn’t. Buffett as a business leader himself of course likes high-quality leadership. But he doesn’t think it’s necessary. He says that rather than investing in a business purely because of its leadership, it makes sense to invest a business which has such a strong business model it could survive even with bad leadership. What clicks with me about Unilever is its strong market position and brand portfolio. Good leadership is a bonus. One stock for a post-Covid world… Covid-19 is ripping the investment world in two… Some companies have seen exploding cash-flows, soaring valuations and record results… …Others are scrimping and suffering. Entire industries look to be going extinct. Such world-changing events may only happen once in a lifetime. And it seems there’s no middle ground. Financially, you’ll want to learn how to get positioned on the winning side. That’s why our expert analysts have put together this special report. If the pandemic has completely changed our lives forever, then they believe that this stock, hidden inside the tech-heavy NASDAQ, could be set for monstrous gains… Click here to claim your copy now — and we’ll tell you the name of this US stock… free of charge! More reading 2 blue-chip UK shares I’d pick now for a growing income The Unilever share price is struggling. I’d buy this FTSE 100 stock now! Why Diageo and Unilever are on my ‘best shares to buy’ list despite this threat The ULVR share price is under 4,000p. Here’s what I’d do Nick Train likes this FTSE 100 stock. But should I buy? christopherruane owns shares of Unilever. The Motley Fool UK has recommended Unilever. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post I followed Warren Buffett’s approach in buying this share appeared first on The Motley Fool UK.
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  35. How Burry predicted 2007, self-repost from Burryology (25/06/2021 - Reddit Stocks)
    I have been reading the book: The oil factor by Stephen Leeb written in 2004. He talks about the inverse relation between (rapid) increase in oil prices, lowering supply and high demand, but he takes a detour. The dotcom bubble dropped sp500 -40%, nasdaq -80%, 16trillion USD wealth went to 7 trillion. The fed lowered rates to 0.75%, boosted borrowing and home prices served as a healthy collateral, which can only go up right? US was highly in debt before the bust, but after… oh with low rates causing booms in home prices, more debt. In this 2004 books he says, if home prices would fall it would be taking down the banking system (1:6 leverage at that time so 18% default was needed to make the banks insolvent, we know later the leverage was 1:20 so 5% default was enough). What would cause home prices to fall? Policies to curb inflation, aaaand when did the fed start to raise rates? Yes, early 2007. No more cheap refinancing causing defaults (subprime etc), and booooom. Amazing book btw on oil, I would recommend it :) thought I would share my joy of finding this out, maybe Burry read this book also in 2004?   submitted by   /u/Content-Effective727 [link]   [comments]
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  36. These two cheap shares keep on falling. I’m delighted with this good news! (15/02/2021 - The Motley Fool UK)
    As a value investor hunting cheap shares, I have three goals. First, as Warren Buffett suggests, “to buy a wonderful company at a fair price (and not a fair company at a wonderful price)”. Second, to invest at prices with potential for future capital gains. Third, to generate a rising passive income from cash dividends. Two cheap shares getting cheaper In this scary world, I aim to invest in the cheap shares of ‘BBC companies’: Big, Beautiful and Cautious businesses. Big means FTSE 100 members, Beautiful means global leaders, and Cautious means reliable, familiar enterprises. The share prices of two leading BBC businesses keep falling, which should be helpful for me as a prospective buyer. BP: Bounce-back Potential Over the last 30 days, the cheap shares of BP (LSE: BP) have been the FTSE 100’s worst performers. They are down almost a seventh (13.9%) in a month. Also, BP’s share price has almost halved over 12 months (crashing 44.8%) and three years (slumping 45.3%). In April 2019, the BP share price was above 570p. Today, it trades at under half this level, hovering around 269p. BP’s profits have been crushed by falling demand due to Covid-19. Also, as an old-economy company selling polluting fossil fuels, environmentally conscious investors shun BP stock. However, BP has been around since 1908 and I expect it to evolve to cope with the next 113 years. Furthermore, the Brent Crude oil price has recovered from below $16 on 22 April 2020 to $63.35. Today, the oil price is more than a tenth (10.7%) higher than it was a year ago. With BP generating enormous cash flows in this improved price environment, I think its cheap shares could rebound. After all, the share price has fallen 40p in a month, which looks like a good entry point to me. That’s why I’d happily buy BP stock today. Of course, if oil demand weakens and prices fall, BP will suffer, but that’s a risk I’d be willing to take. Meanwhile, I can collect chunky dividends in the form of a 5.6% dividend yield. Unilever: cheap shares? Like BP shares, the share price of Unilever (LSE: ULVR) has struggled over the past month. Having dropped by almost a tenth (9%), Unilever shares are #95 in the FTSE 100 performance ranking over the past 30 days. Unilever’s share price is also down 15% over one year, but is up 3.5% over three years and has risen more than a third (36.4%) over five years. Even after recent drops, I wouldn’t exactly call these cheap shares, but that’s because quality costs a little extra. And Unilever is a company I have grown to admire hugely over nearly 35 years as an investor. Why would I happily invest in Unilever today? First, the Anglo-Dutch giant is a world leader in selling fast-moving consumer goods. Every year, billions of us buy its brands for our kitchen and bathroom cupboards. With a market value of £104.1bn, Unilever is a global giant in the sales of cleansers and hygiene products, personal-care goods, and food and snacks. In 2020, Unilever’s share price peaked at 4,944p on 14 October. Four months later, it has dived by almost £10 to 3,979p. For me, that pushes Unilever into the ‘cheap shares’ bargain bin. Of course, its post-Covid performance could disappoint, but I trust its management team to deliver long term. And Unilever’s 3.7% dividend yield is the icing on the cake! The high-calibre small-cap stock flying under the City’s radar Adventurous investors like you won’t want to miss out on what could be a truly astonishing opportunity… You see, over the past three years, this AIM-listed company has been quietly powering ahead… rewarding its shareholders with generous share price growth thanks to a carefully orchestrated ‘buy and build’ strategy. And with a first-class management team at the helm, a proven, well-executed business model, plus market-leading positions in high-margin, niche products… our analysts believe there’s still plenty more potential growth in the pipeline. Here’s your chance to discover exactly what has got our Motley Fool UK investment team all hot-under-the-collar about this tiny £350+ million enterprise… inside a specially prepared free investment report. But here’s the really exciting part… right now, we believe many UK investors have quite simply never heard of this company before! Click here to claim your copy of this special investment report — and we’ll tell you the name of this Top Small-Cap Stock… free of charge! More reading The best shares to buy now: 2 FTSE 100 stocks I’ve been buying Why I won’t be rushing to buy Unilever shares Top income stocks for February 2021 BP share price has fallen more than 15%. Here’s what I’d do. 2 FTSE 100 shares I’d add to my Stocks and Shares ISA in February Cliffdarcy has no position in any of the shares mentioned. The Motley Fool UK has recommended Unilever. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services, such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool, we believe that considering a diverse range of insights makes us better investors. The post These two cheap shares keep on falling. I’m delighted with this good news! appeared first on The Motley Fool UK.
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  37. Is the Unilever share price too cheap? (27/04/2021 - The Motley Fool UK)
    The Unilever (LSE:ULVR) share price has had a rough ride in 2021. Despite an initial recovery from its decline in early 2020, the stock’s headed in a downward trajectory. And, in February, it reached its lowest point since 2018. Since then, it’s begun climbing again, but still remains firmly below pre-pandemic levels. So is this a buying opportunity for my portfolio? The fluctuating Unilever share price Despite Unilever’s share price performance, I think the business has done pretty well. This large consumer goods business owns a portfolio of 47 brands, covering a wide range of well-known products. These include Dove soap, Hellmann’s mayonnaise and, my personal favourite, Ben & Jerry’s ice cream. Needless to say, the business has a diverse collection of offerings for its customers. And these brands continued to maintain their popularity throughout the pandemic, especially its hygiene and personal care products, given the acute focus on Covid-combatting purchases. Overall, it achieved a 1.9% growth in sales, despite consumer spending in the first half of last year falling considerably, according to the Office for National Statistics. While this is hardly stellar growth for a £100bn blue-chip consumer goods business, that’s quite an achievement, given the circumstances. So why did the Unilever share price fall after publishing these results? Total sales may have met investor expectations, but underlying profit didn’t. Operating income fell by 5.8% as some of the company’s high-margin product sales volumes declined. For example, ice cream missed out on the 2020 summer season since lockdowns prevented most of us from enjoying the collective sun experience. Looking ahead Given that the decline in underlying profits was caused by external factors rather than a significant problem within the business, I’m not particularly concerned by the drop. The vaccine rollout is progressing relatively quickly here in the UK. And providing infection rates don’t spike again, it looks  as if life will return to relative normality in time for the upcoming summer season. What’s more, to protect the business’s financial health, the management team is focussing on building its cash position. Subsequently, it’s increased its free cash flow by €1.5bn to €7.7bn. Impressive as this is, Unilever still has some tough competition to deal with. Afterall, the consumer goods market is filled with alternative brands. Both social media and digital marketing have also made it much easier for smaller companies to launch and steal market share from the likes of Unilever. If the firm fails to maintain the pricing power of its brands, then its margins may get squeezed. This, in turn, would continue the decline in underlying profits that would subsequently lead to a fall in the Unilever share price. The bottom line Unilever is by no means a high-growth stock. However, it has consistently and reliably returned profits to shareholders through its dividend policy. Given its track record and extensive collection of brands, I believe the business can continue to perform well for many years to come. Therefore, I think the recent decline in the Unilever share price is an opportunity to add the stock to my income portfolio. But it’s not the only opportunity I’ve spotted this week… “This Stock Could Be Like Buying Amazon in 1997” I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner. But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared. What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations. And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! More reading The Unilever share price is down 13% in 6 months. I’d buy now 3 British dividend stocks I’d buy for passive income 2 UK penny stocks (and a FTSE 100 share) I’m thinking of buying right now I think these 2 FTSE 100 stocks might be among the best shares to buy today 2 UK dividend stocks I’d buy now for my ISA Zaven Boyrazian does not own shares in Unilever. The Motley Fool UK has recommended Unilever. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Is the Unilever share price too cheap? appeared first on The Motley Fool UK.
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  38. Nick Train likes this FTSE 100 stock. But should I buy? (22/02/2021 - The Motley Fool UK)
    I think most investors recognise Nick Train as one of the UK’s highest-profile fund managers. He invests in many FTSE 100 stocks in his portfolios. Train manages the Finsbury & Growth Income Trust and the Lindsell Train Investment Trust, as well as other funds. I should mention that one FTSE 100 stock he likes is Unilever (LSE: ULVR). So much so that as at the end of January, Train had over a 9% weighting in his Finsbury & Growth Income Trust portfolio. It shows me that this manager isn’t afraid of making big stock calls and highlights the strength of his conviction in the company. But do I share this same level of enthusiasm on Unilever? In a nutshell, I wouldn’t hold the shares in my portfolio. Here’s why I reckon Train may be wrong about the FTSE 100 stock. Strong brands One of the reasons why Train likes Unilever is due to its portfolio of strong brands. There’s no denying the company’s impressive collection of consumer brands. Persil, Ben & Jerry’s, Knorr, Lipton, Dove and Vaseline are just some of them. Unilever says that 2.5 billion people across the world use its products daily. To me, that’s impressive. I agree with Train that global brands such as Unilever owns offer the company durability and some permanence. But I think competition is growing, especially from smaller and cheaper brands. In my opinion, consumers like value. If the smaller brands are offering a similar product for a cheaper price, it’s only natural that some will start using this instead. This means Unilever could have to compete more on price. To me, this is never a good thing as it could impact margins, thereby placing pressure on the dividend. The dividend Unilever is one of the FTSE 100 stocks that offers an attractive dividend yield of 3%. That’s why it’s a favourite among income hungry investors, like me. Even Train likes the dividend yield too. Recently Unilever raised its quarterly dividend. I saw this as an encouraging move from the company, especially during the coronavirus pandemic. It also indicated to me that Unilever can pay investors an income for now. But I’m somewhat uncomfortable about future dividend payments. If competition is increasing, margins are likely to be squeezed, which may impact future income, especially when Unilever’s growth has been sluggish over the past few years.  Sales growth Even before Covid-19, Unilever was trying to improve its sales growth by focusing on emerging markets. It’s already established in the developed countries. But even Unilever’s business wasn’t immune from the pandemic. Its 2020 full-year profits took a huge hit. Let’s be frank, this pandemic is not over yet. My concern is that lockdowns and government restrictions could persist, which could continue to impact Unilever’s business. This could also hurt profitability and thus the dividend. Unilever has an ambitious target to deliver 3%-5% underlying sales growth per year in the long term. But I want to see some evidence of improving sales growth sooner. Unlike Train, I won’t be buying Unilever shares in my portfolio just yet. “This Stock Could Be Like Buying Amazon in 1997” I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner. But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared. What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations. And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! More reading As the Unilever share price continues to fall, I’m still buying the stock I can buy Unilever shares at a lower price than Warren Buffett would have paid! FTSE 100 stocks: a UK share I think will exit Covid-19 in terrific shape Unilever shares: should I buy? These two cheap shares keep on falling. I’m delighted with this good news! Nadia Yaqub has no position in any of the shares mentioned. The Motley Fool UK has recommended Lindsell Train Inv Trust and Unilever. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Nick Train likes this FTSE 100 stock. But should I buy? appeared first on The Motley Fool UK.
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  39. Share Market LIVE: Sensex, Nifty stare at gap-up start; Bitcoin, Ethereum, other cryptos record massive fall (20/05/2021 - Financial Express)
    Share Market News Today | Sensex, Nifty, Share Prices LIVE: SGX Nifty was up 30 points on Thursday morning, hinting at a positive start for domestic markets today.
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  40. The Unilever share price is falling. Is it a Stocks & Shares ISA buy now? (07/09/2021 - The Motley Fool UK)
    Unilever (LSE: ULVR) is often seen as a safe long-term investment. But the Unilever share price has been dipping since July, and has now fallen 9% since the start of 2021. Unilever shares are down more than 20% over the past two years, covering the whole of the pandemic period. And that’s not supposed to happen to a traditional safety stock, is it? So, is this a buying opportunity? Top stocks tend to command perpetually high valuations, so how is Unilever looking now with that in mind? Based on earnings per share reported in 2020, the current Unilever share price gives us a trailing P/E of 18.7. That’s a bit above the long-term FTSE 100 average, which tends to hover around 14 to 15. But it’s really not that much higher, and it’s relatively low for Unilever. Over the past five years, Unilever has been on an average year-end P/E of 20. On that score, I’m happy so far. Dividend yield What about dividends? The dividend has been a bit flat in recent years, but it’s still been yielding around 3.5%, with a forecast of 3.4% this year. The FTSE 100 overall had been yielding higher than that. But after the events of 2020, we’re expecting around 3.7% for 2021. Unilever, then, should be delivering only slightly behind the average in 2021. There are others offering much bigger yields right now. British American Tobacco, for example, is on a forecast 7.5%. But for its relative long-term stability, I do find Unilever’s dividend yield attractive. So why has the Unilever share price fallen to what I see as an undervaluation? The recent price dip has pretty much coincided with noises from the City about rising inflation. That can put the squeeze on margins, as it can take time for inflationary rises to work their way through the price chain. Medium-term risk And that, I think, is the biggest risk facing Unilever shareholders in the year ahead and perhaps beyond. After all, margins on staple food and hygiene products are not the biggest to start with. And at interim time, the figures were starting to show the effect. The firm’s underlying operating margin came in at 18.8%, down a percentage point. The report put that partly down to “input cost inflation.” Underlying EPS dipped 2%. And free cash flow declined a little, from €2.9bn in the first half of 2020 to €2.4bn. But on balance, in the 2021 economic climate, I think the results were fine. Were I a Unilever shareholder, they certainly wouldn’t come close to making me want to sell. Unilever share price attractive? But should I buy? I’m not the only one, it seems, who sees the Unilever share price as low now. No, the company itself is in the middle of a big share buyback programme. Having completed the first tranche in August, Unilever promptly revealed a second phase which will see it investing up to €3bn to buy back its own shares. So, I think we could see a bit of stagnation over the coming year or so. But I do like the idea of buying Unilever shares when they’re in a dip. Unilever is definitely on my Stocks and Shares ISA shortlist. The post The Unilever share price is falling. Is it a Stocks & Shares ISA buy now? appeared first on The Motley Fool UK. 5 Stocks For Trying To Build Wealth After 50 Markets around the world are reeling from the coronavirus pandemic… And with so many great companies trading at what look to be ‘discount-bin’ prices, now could be the time for savvy investors to snap up some potential bargains. But whether you’re a newbie investor or a seasoned pro, deciding which stocks to add to your shopping list can be daunting prospect during such unprecedented times. Fortunately, The Motley Fool is here to help: our UK Chief Investment Officer and his analyst team have short-listed five companies that they believe STILL boast significant long-term growth prospects despite the global lock-down… You see, here at The Motley Fool we don’t believe “over-trading” is the right path to financial freedom in retirement; instead, we advocate buying and holding (for AT LEAST three to five years) 15 or more quality companies, with shareholder-focused management teams at the helm. That’s why we’re sharing the names of all five of these companies in a special investing report that you can download today for FREE. If you’re 50 or over, we believe these stocks could be a great fit for any well-diversified portfolio, and that you can consider building a position in all five right away. Click here to claim your free copy of this special investing report now! More reading 2 FTSE 100 dividend stocks to buy in September FTSE 100: 3 quality dividend stocks to buy in August 3 top UK stocks I think are undervalued Alan Oscroft has no position in any of the shares mentioned. The Motley Fool UK has recommended British American Tobacco and Unilever. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
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  41. I can buy Unilever shares at a lower price than Warren Buffett would have paid! (17/02/2021 - The Motley Fool UK)
    Four years ago this month, Unilever (LSE: ULVR) rebuffed a Warren Buffett-backed bid for the company. The offer valued it at £40 a share. Subsequently, the Unilever share price went on to make an all-time high of £52 in the summer of 2019. Today, I can buy Unilever’s shares at a lower price than Buffett was willing to pay. At sub-£40, they’re also at a 24% discount to their all-time high. Here, I’ll discuss why I’d buy the shares at this level. I’ll also look at the potential risks to my investment case. Warren Buffett rebuffed Kraft Heinz, backed by its 50% owners Buffett and 3G Capital, approached Unilever with an initial £40-a-share offer price. However, Unilever had no interest in being acquired. According to the Financial Times, the Unilever team studied 3G’s modus operandi in previous takeovers, and concluded Kraft Heinz “would try to seem as friendly as possible and then increase its bid in increments until there was sufficient pressure from Unilever investors“. This suggests Buffett would have been willing to sanction an offer of even more than £40-a-share. However, Unilever’s board moved quickly to nip Kraft Heinz’s approach in the bud. It publicly stated it saw no merit in the offer and no basis for any further discussions. Buffett has an aversion to doing hostile takeovers, and he and 3G boss Jorge Lemann made the decision for Kraft Heinz to withdraw its proposal. Unilever share price better than fair One of Buffett’s famous sayings goes: “It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price”. That Kraft-Heinz’s £40-a-share approach for Unilever was an initial offer suggests to me sub-£40 a share represents a better than fair price for a wonderful company. Buffett’s readiness to acquire Unilever for £40 a share, and possibly at a higher price, is one reason I’d be happy to buy the stock at its current level. Historically cheap I can see a couple of risks in buying Unilever based on the Buffett share price. First, his valuation of the company could have been wrong — that’s to say, too high. It’s a risk. But I find it hard to believe Buffett, 3G’s Lemann, and the UK’s Nick Train (who was adding to his Unilever shareholding in 2017) were all significantly off the mark in their assessment of the intrinsic value of the business. Another risk is that they were right, but Unilever has become intrinsically less valuable in the four years since. However, I can’t find see any evidence for this. It’s more profitable and cash-generative than in 2017. Its underlying operating margin has expanded from 15.3% to 18.5% over the four years. Earnings per share have increased by 32% and free cash flow by 60%. I’d say Unilever is a more valuable business today than when Buffett placed his £40-a-share sighting shot on the company. Trading at an historically cheap 18.4 times trailing earnings, with a free cash flow yield of 6.4% and dividend yield of 3.7%, I’d be happy to buy Unilever at its current share price. “This Stock Could Be Like Buying Amazon in 1997” I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner. But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared. What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations. And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! More reading FTSE 100 stocks: a UK share I think will exit Covid-19 in terrific shape Unilever shares: should I buy? These two cheap shares keep on falling. I’m delighted with this good news! The best shares to buy now: 2 FTSE 100 stocks I’ve been buying Why I won’t be rushing to buy Unilever shares G A Chester has no position in any of the shares mentioned. The Motley Fool UK has recommended Unilever. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post I can buy Unilever shares at a lower price than Warren Buffett would have paid! appeared first on The Motley Fool UK.
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  42. 3 top shares to buy and hold for 5 years (31/08/2021 - The Motley Fool UK)
    Many very successful investors trade only rarely. Instead, they identify top shares to buy for their portfolio then hold them for years or decades. Below are three such shares I would consider adding to my portfolio. Income and growth prospects First up is insurer and financial services provider Legal & General. The company has a strong position in the UK market. Its vision of “inclusive capitalism” strikes me as a potentially powerful magnet to keep attracting new, younger customers. That could help the company to grow revenues in coming years. I am attracted to the underlying business of Legal & General, but also like its income potential. Currently these FTSE 100 shares yield 6.5%. The company has also set out plans to increase its dividend in coming years, although dividends are never guaranteed. But there is a risk that increased competition in the financial sector could eat into profit margins. Top shares to buy: Reckitt Household product maker Reckitt (LSE: RKT) also has an attractive yield, though at 3.2% it’s only around half the size of Legal & General’s. But I consider Reckitt to be among the top shares to buy now for my portfolio and hold for years to come. The business has had some problems, especially in its infant nutrition division. So, while the FTSE 100 is up 21% over the past year, the Reckitt share price has slumped by a quarter during the same period. But I think the company will eventually resolve its challenges in the nutrition business, either by fixing or selling it. Meanwhile, the other Reckitt businesses look attractive to me. It owns premium brands such as Dettol and Finish which give it pricing power. That might not be enough, of course. The nutrition business underperformance could hurt the company’s balance sheet. Right now another significant risk is inflationary pressure on ingredient costs. That could eat into profit margins. But I reckon that the company’s management is good enough to turn the ship around and unleash the potential of Reckitt’s portfolio. At its current share price, I rate Reckitt among the top shares to buy now I would consider for my portfolio. Storing up potential My third choice has had a better recent share price performance than Reckitt. In fact, today it touched an all-time high. Given the price, why do I like it? The share in question is storage company Safestore. Despite the Safestore share price increasing 48% over the past year, I continue to rate it among the top shares to buy and hold for my portfolio. The business model is simple, but it has proven to be profitable. I think demand is set to increase for years to come. Compared to the US, for example, self-storage is an industry still in its infancy in the UK. In its interim results, the company reported revenue growth of 11%. Diluted earnings per share rose 75%. The dividend per share jumped 27%. I see continued growth potential here as the company meets growing customer demand. But barriers to entry in the industry are low. One risk is that increased competition could squeeze profit margins. The post 3 top shares to buy and hold for 5 years appeared first on The Motley Fool UK. Inflation Is Coming: 3 Shares To Try And Hedge Against Rising Prices Make no mistake… inflation is coming. Some people are running scared, but there’s one thing we believe we should avoid doing at all costs when inflation hits… and that’s doing nothing. Money that just sits in the bank can often lose value each and every year. But to savvy savers and investors, where to consider putting their money is the million-dollar question. That’s why we’ve put together a brand-new special report that uncovers 3 of our top UK and US share ideas to try and best hedge against inflation… …because no matter what the economy is doing, a savvy investor will want their money working for them, inflation or not! Best of all, we’re giving this report away completely FREE today! Simply click here, enter your email address, and we’ll send it to you right away. More reading Warren Buffett says to do this if you want to make money from stocks 1 beaten down UK growth share to buy right now Mr Market has a meltdown Investors are buying this FTSE 100 stock. Should I? FTSE 100: 3 no-brainer shares to buy now Christopher Ruane has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
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  43. How do stock prices work? (15/03/2021 - Reddit Stock Market)
    I've just started looking into the stock market and hope to invest someday. To start off, I tried learning about how the stock market and the price per share works. Generally, I know that the price of shares is based on the market cap and the trend of buying and selling stocks. If a lot of people are selling, then the cost goes down and if a lot of people are buying, then the cost goes up. However, when you buy a stock, someone is selling it on the other end and vice versa. Then how do stock prices rise and fall if the share is more or less just exchanged between people? Someone probably just needs to clear things up for me.   submitted by   /u/Blueberry1000068 [link]   [comments]
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  44. 5 passive income stocks I’d buy right now (21/04/2021 - The Motley Fool UK)
    I like the idea of buying passive income stocks and holding them for the long term. To me, a stock suitable for generating passive income will be backed by a big business capable of paying enduring shareholder dividends. I could hold the shares and take the dividends as passive income. Or I could roll the dividends back into my investments to help compound my gains. My preferred passive income stocks Some of my preferred choices have seen weaker share prices lately. So I reckon it’s a good time for me to run the calculator over those investment opportunities. For example, in the pharmaceutical sector, I like the look of AstraZeneca and GlaxoSmithKline. Both companies have steady underlying businesses that tend to keep on generating cash flow whatever the general economic weather. And that’s because people tend to prioritise purchasing medicines, however tough the times. With its share price near 1,325p, GlaxoSmithKline’s forward-looking dividend yield is just below 5% for 2022. However, the company plans to split its operations into standalone Biopharma and Consumer Healthcare companies in 2022. Those plans are creating some uncertainty and the forward yield is set to drop a little because of the change. On top of that, the share price has been trending lower since the beginning of 2020 and that move could continue. Meanwhile, with AstraZeneca’s share price near 7,494p, the forward-looking dividend yield for 2022 is around 2.8%. That’s quite a modest yield and there’s some risk the valuation could contract. That might happen if the rate of earnings growth declines, for example. Nevertheless, I’m tempted to buy shares in both firms for a long-term portfolio focused on passive income. Branded fast-moving consumer goods In the fast-moving-consumer-goods space, I’m keen on Reckitt Benckiser and Unilever. The companies’ ranges of branded food, cleaning and hygiene products tend to sell consistently as medicines do in the pharmaceutical sector. People love to keep buying their ‘essentials’ in good times and bad, and that tends to lead to solid and reliable cash inflow. With the share price near 6,676p, Reckitt Benckiser’s forward-looking dividend yield for 2022 is just below 2.7%. And at 4,128p, Unilever’s is just over 3.6%. Both of those income streams have a multi-year history of incremental annual growth. However, I’d describe the valuation of both companies as rich. And there’s a possibility the shares will move lower so that the valuation becomes fairer. If that happens, I could lose money on my holdings. Nevertheless, I’d put these two stocks in my passive income portfolio to hold for the long term. My final passive income pick is energy transmission system provider National Grid. I see the firm’s regulated monopoly position in the UK’s energy network as attractive. And the sector is defensive and less prone to cyclical ups and downs than many others. There’s also a business in the US. With the share price near 911p, the forward-looking dividend yield for the trading year to March 2022 is just below 5.5%. I think that’s attractive but National Grid carries a lot of debt, which could combine with regulatory changes in the future to threaten shareholder payments. Nevertheless, I’d add this one to my passive income portfolio. And I’m also keen on this stock opportunity: One stock for a post-Covid world… Covid-19 is ripping the investment world in two… Some companies have seen exploding cash-flows, soaring valuations and record results… …Others are scrimping and suffering. Entire industries look to be going extinct. Such world-changing events may only happen once in a lifetime. And it seems there’s no middle ground. Financially, you’ll want to learn how to get positioned on the winning side. That’s why our expert analysts have put together this special report. If the pandemic has completely changed our lives forever, then they believe that this stock, hidden inside the tech-heavy NASDAQ, could be set for monstrous gains… Click here to claim your copy now — and we’ll tell you the name of this US stock… free of charge! More reading Why I’d buy the Associated British Foods share now UK shares to buy now: how I’d invest £1,000 a month Barclays share price versus Lloyds share price: which would I buy today? 9% dividend yields! Should I buy this FTSE 100 share for my Stocks and Shares ISA? Is the AstraZeneca share price undervalued? Kevin Godbold has no position in any share mentioned. The Motley Fool UK has recommended GlaxoSmithKline and Unilever. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post 5 passive income stocks I’d buy right now appeared first on The Motley Fool UK.
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  45. Weighted average cost for state loans at 8-week low on high demand (11/08/2021 - Financial Express)
    The fall in borrowing costs can also be attributed to the fall in global prices of crude oil and industrial metals, which have eased concerns over inflation
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  46. With #DettolSalutes campaign, Reckitt replaces logo with Covid-19 stories (07/06/2021 - Financial Express)
    It has also launched a platform for people from across India to share stories and acknowledge Covid protectors in their midst by creating customised virtual packs
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  47. Gold prices fall to 8-month low, plunge 20% from record high; where will yellow metal prices go from here? (17/02/2021 - Financial Express)
    Gold prices in India fell for the fifth straight day on Wednesday, tracking weak global market trends. The US dollar and Treasury yields surged
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  48. RRGB and other chains will hurt this fall. (20/08/2021 - Reddit Stocks)
    Ok so I'll start off by saying that I bought RRGB last year when the pandemic started. Bargain bottom prices. I've seen RRGB rise to where I thought it would be but decided to stay in thinking the summer would be gangbusters. But it seems that it's been on a pretty steady downward trip. Not enough employees and limiting store hours are being used as the cause. So I wonder to myself, with not enough employees and with the Delta variant surging in different parts of the country, what does that spell out for other restaurant chains, movie theaters, and pretty much any indoor entertainment? With the fall around the corner and winter soon to follow ... Would it stand to reason that the prices will recede even further? Another buying opportunity or what? I'm interested in reading what you think is to come? Why would the fall or winter be any better? Summer time is big movies, going out to eat, etc etc. Fall and winter are hunker down and shop for the holiday season times. Anyway. I exited RRGB, not where I wanted, but I'm not going to cry over making money.   submitted by   /u/dondizzle [link]   [comments]
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  49. As the Unilever share price continues to fall, I’m still buying the stock (18/02/2021 - The Motley Fool UK)
    The Unilever (LSE: ULVR) share price has been a challenging investment to hold over the past 12 months. The stock is off 15%, excluding dividends, since the middle of February last year. Unfortunately, declines in the shares have only accelerated over the past few weeks. Since the beginning of the year, the stock is off around 11%, excluding dividends paid to investors.  However, despite this performance, I’ve been adding to my position in the consumer goods giant.  Mixed outlook Investors seem to have been selling their shares in the company over the past year due to concerns about Unilever’s growth potential. The firm relied heavily on business-to-business trade before the pandemic. That meant when the world went into lockdown in the first half of last year sales suffered.  Over the past year, management has been repositioning the company for the new normal. The strategy seems to have yielded results as management was able to reinstate the group’s long-term growth target earlier this year. It’s aiming for sales growth of 3-5% per annum in the long term. But this outlook has only had a limited impact on the Unilever share price.  Of course, the corporation is by no means guaranteed to hit these targets. As we’ve seen over the past year, outside events can impact even the market’s largest and most defensive businesses. Other factors have also hurt the company’s growth. Labour disputes, rising costs and currency headwinds are all issues Unilever’s management has to deal with regularly.  On the other hand, the company does have a diversified portfolio of products, supplying everything from Ben & Jerry’s ice cream to Brylcreem, Bovril and Cif. This level of diversification has helped the business weather the pandemic. It’s fared much better than many other FTSE 100 corporations as a result.  The Unilever share price: a long-term investment Unilever’s growth targets suggest the company won’t become the market’s fastest-growing enterprise anytime soon. Nevertheless, it does imply the business is aiming for slow and steady long-term growth from its portfolio of billion-dollar brands. That’s why I like the group. It’s not going to shoot the lights out, but I think it’s more dependable than many other businesses, thanks to product diversification.  What’s more, after recent declines, the Unilever share price currently supports a dividend yield of just under 4%. This distribution isn’t guaranteed forever. If the company’s earnings suddenly take a dive, for example, management may have to cut the payout to reduce cash burn. However, Unilever seems to be committed to the dividend for the next year at least. That’s highly positive, in my view.  So, overall, considering the company’s defence nature and attractive dividend yield, I’d buy the stock for my portfolio today. Still, this organisation may not be suitable for all investors, considering its modest growth targets and potential headwinds.  A Top Share with Enormous Growth Potential Savvy investors like you won’t want to miss out on this timely opportunity… Here’s your chance to discover exactly what has got our Motley Fool UK analyst all fired up about this ‘pure-play’ online business (yes, despite the pandemic!). Not only does this company enjoy a dominant market-leading position… But its capital-light, highly scalable business model has previously helped it deliver consistently high sales, astounding near-70% margins, and rising shareholder returns … in fact, in 2019 it returned a whopping £150m+ to shareholders in dividends and buybacks! And here’s the really exciting part… While COVID-19 may have thrown the company a curveball, management have acted swiftly to ensure this business is as well placed as it can be to ride out the current period of uncertainty… in fact, our analyst believes it should come roaring back to life, just as soon as normal economic activity resumes. That’s why we think now could be the perfect time for you to start building your own stake in this exceptional business – especially given the shares look to be trading on a fairly undemanding valuation for the year to March 2021. Click here to claim your copy of this special report now — and we’ll tell you the name of this Top Growth Share… free of charge! More reading I can buy Unilever shares at a lower price than Warren Buffett would have paid! FTSE 100 stocks: a UK share I think will exit Covid-19 in terrific shape Unilever shares: should I buy? These two cheap shares keep on falling. I’m delighted with this good news! The best shares to buy now: 2 FTSE 100 stocks I’ve been buying Rupert Hargreaves owns shares in Unilever. The Motley Fool UK has recommended Unilever. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post As the Unilever share price continues to fall, I’m still buying the stock appeared first on The Motley Fool UK.
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