* In 2009 Unilever decided to start paying a quarterly dividend. Technically you could argue that there was a dividend cut by purely looking at the dividend payments. But as you can see in the 3rd column, the dividend payouts have continued to grow from a calendar-year payout point of view. In this case it was good for investors, because it maintained a steady and growing cash-flow.

* See earlier comment about switch from bi-annual to quarterly dividends.

Yes, Unilever pays a dividend 4 times a year. It is one of the few European dividend aristocrats that pays a quarterly dividend.

Yes, if you are an American investor you can purchase the Unilever ADR shares with ticker symbol $UL.

As per 1 March 2021:

• The dividend EPS payout ratio stands at 80%
• The dividend Underlying EPS payout ratio stands at 69%
• The dividend Free Cash Flow payout ratio stands at 59%

Unilever started to pay a dividend right from inception when the company was created. In December 1929, Unilever NV paid its first interim dividend of 48 cent (fl. – guilders) and Unilever PLC paid 2,4 pence (£sd, pre-decimal system).

The first few years of the dividend payments where bumpy, with several cuts. This is understandable as the company was still forming and they were quite strict in their dividend policy. At the same time the company got created on the brink of the great depression.

Let me answer it to you from different point of views, because the data is not that straight forward.

UNA – Dividend Growth Streak

A data purist would say that the growth streak for Unilever (AMS) is 11 years. They will argue that the dividend got cut in 2009, because technically less dividends were declared based on fiscal year 2009 earnings than the year before.

A very optimistic person would say that the growth streak for Unilever NV is 75 years, because in their view Unilever NV didn’t cut its dividend since the second world war. The optimist would ignore the 1 cent decline in 1966, because the Unilever PLC dividend remained the same that year.

A realistic person would argue that the growth streak for Unilever NV is 55 years, because they would argue that the switch from bi-annual dividends to quarterly dividends was hard to manage differently and therefore it wasn’t a dividend cut. The calendar amount of paid dividends in 2008, 2009 and 2010 did see steady growth. However, the realistic person would argue that the dividend got cut with 2.4% in 1966.

ULVR – Dividend Growth Streak

Unilever (LON) dividend growth streak looks much more bumpy, but this is mainly due to the Euro <> Pound currency over the last years. Due to that Unilever PLC “cut” its dividend 6 times since the second world war and therefore I rather refer to Unilever NV for its dividend growth streak.

However, it does look like Unilever PLC had a stronger average percentage increase over the last decades compared to Unilever NV. This doesn’t sound too bad for the UK investors!

Yes, see also answer above. H. S. A. HARTOG, Chairman of Unilever in 1966 had the honor to be the only post-war chairman to truly cut the dividend. He did this with just one cent.

It’s a bit awkward, because sales grew 3 percent that year and profit marginally improved. Net profit was a bit down due to higher loan and tax expenses, but the payout ratio was flat at ~40%.

If anyone of the readers have any special context of why the dividend was not increased with such positive numbers, then please let me know and I will update the answer to this question.

Otherwise this sounds to me more about “a situation in time” where the expression Penny Wise, Pound Foolish definitely applies

Yes, as per my knowledge, Unilever paid a special dividend in 1970, 1998 and 2006.

In 1970 Unilever paid a special dividend to avoid a dividend cut, due to the introduction of an additional interim-dividend in 1969 (NV fl 0,73 | PLC 1,25p). This idea of 2 interim-dividends was a year later abandoned again, but it did result in an additional dividend in 1970 to keep its dividend growth streak.

In 1998 Unilever paid a special dividend equivalent to the cash proceeds received in 1997 from the sale of Unilever’s speciality chemicals businesses (NV fl 1,70 | PLC 66,13p). If my calculations are correct, then this meant at the time a 30% yield purely for the special dividend. Off course, a part of the business was sold, but their earnings power and dividend increases where not negatively impacted by this sale.

In 2006 Unilever paid a special dividend due to strong cash flows and a strong balance sheet which gave the board of directors strong confidence in paying a one-off special dividend (NV 0,26 EUR | PLC 17,66p).

I am referring to Wikipedia for a list of recessions since world war 2. The figures below have mainly been derived by looking at the year after the recession year, because dividend announcements impacted due to a recession usually follow with a year delay.

Unilever currently pays its dividends quarterly.

• Q1 dividends are paid in the first week of June
• Q2 dividends are paid in the first week of September
• Q3 dividends are paid in the first week of December
• Q4 dividends are paid in the second or third week of March

For most of its history, Unilever was paying an interim dividend in December, the same year as the ending of the fiscal year. The final dividend was typically paid in May after the approval at the annual general meeting (AGM).

In the early years, especially during the second world war, dividends where often paid in December the next year. It just took time in those days to compile an annual report, hence also the dividends payments where delayed.

Unilever typically announces its new quarterly dividend somewhere in the middle of April as part of its first quarter trading statement.

Just looking at the dividend history is not enough to judge whether the Unilever dividend is safe. The dividend safety can change at any moment due to changing business fundamentals. Hence, it’s very important to always do your homework and analyze the prospects of the company.

You can learn more about my personal opinion by reading my Unilever stock analysis article from last year. This was pre-covid19, so the world has changed since then. However, the business fundamentals itself have not change that much since then.