10 Best European Dividend Stocks To Buy

7. Unilever PLC (NYSE:UL)

Dividend Yield as of December 20: 3.33%

Number of Hedge Fund Holders: 22

Unilever PLC (NYSE:UL) is a global consumer goods company with a broad portfolio across five key areas – Beauty & Wellbeing, Personal Care, Home Care, Nutrition, and Ice Cream. Its well-known brands include Dove, Hellmann’s, Ben & Jerry’s, and Knorr. Founded in 1860 and headquartered in London, Unilever serves markets worldwide, offering everything from skincare and hair care to ice cream and plant-based foods.

In Q3, Unilever PLC (NYSE:UL) saw a 4.5% increase in underlying sales and a 3.6% growth in volume. This marks the fourth quarter in a row of positive volume growth, with Beauty & Wellbeing and Ice Cream segments leading the charge. Ice Cream, in particular, is benefiting from ongoing operational improvements, although growth may not always be steady. The company’s Power Brands grew by 5.4%, driven by strategic investments under its Growth Action Plan (GAP), which has led to more consistent and stronger results across the business.

In Mar Vista Strategic Growth Strategy’s third-quarter 2024 investor letter, Unilever PLC (NYSE:UL) was highlighted as a key stock. The company saw a 25.49% increase in its stock price over the past 52 weeks, and as of December 2, 2024, its market capitalization stood at $148.31 billion. Here is what Mar Vista Investment Partners has to say about UL:

“We resumed our investment in Unilever PLC (NYSE:UL). We divested our Unilever position in 2022, following the company’s failed attempt to acquire GlaxoSmithKline’s (GSK) consumer health business. That proposed deal, characterized by its exorbitant price tag and a strategic shift from incremental to transformative acquisitions, eroded our confidence in Unilever’s capital allocation capabilities. The strategic misstep, coupled with a shareholder revolt and a negative stock price reaction, ultimately led management to abandon the acquisition.

Since our departure, Unilever has hired a new CEO and demonstrated a renewed commitment to enhancing shareholder value through a more disciplined approach to acquisitions and divestitures. Trian’s involvement in Unilever, including their investment and Nelson Peltz’s board position, has positively impacted the company’s capital allocation strategy…” (Click here to read the full text)

On October 28, Unilever announced a $0.4755 per share quarterly dividend. The dividend was distributed to shareholders on December 6. Unilever PLC (NYSE:UL) ranks 7th on our list of the best dividend stocks from the European market.

Famous Wall Street hedge funds including Fisher Asset Management, GQG Partners, and Arrowstreet Capital held significant stakes in Unilever PLC (NYSE:UL) as of September 2024. Overall, 22 hedge funds were bullish on the stock at the end of Q3.