Owning over 400 different brands and operating in 190 countries worldwide, Unilever is one of the world’s largest consumer goods companies and has a stellar reputation for the diverse range of products they provide. Having been in operation for over 90 years, the company is recognised worldwide and represents a great addition to any equity portfolio.
In this guide, we’ll show you How to Buy Unilever Shares UK, highlighting everything you need to know about the company and discussing how to invest without paying any commissions whatsoever.
The four quick steps below will show you how to buy Unilever shares in under ten minutes with FCA-regulated broker eToro. In the sections that follow, we’ll cover Unilever in detail and discuss everything you need to know about the company and its financials.
- Step 1: Open an Account with eToro – Head over to eToro’s website and click ‘Join Now’. Enter your email and choose a username and password.
- Step 2: Upload ID – Verify your ID by uploading a copy of your driver’s license or passport and verify your address by uploading a copy of a bank statement or utility bill.
- Step 3: Deposit – Fund your account via credit/debit card, bank transfer, or e-wallet.
- Step 4: Buy Unilever Shares – Search for Unilever in the search bar and click ‘Trade’. Enter the amount you’d like to invest and click ‘Open Trade’.
Step 1: Choose a Stock Broker
The first thing you must do when you decide to buy Unilever shares UK is to choose a reliable stock broker. These brokers essentially act as the middleman between you and the market and facilitate buy and sell transactions. However, there are so many options on the market these days, it can seem overwhelming trying to decide who to partner with.
Not to worry – we’ve done all of the research and narrowed it down to our two recommended brokers to buy Unilever shares UK with.
Our recommended broker to buy Unilever shares UK is eToro. eToro is one of the world’s most trusted brokers and is regulated by top regulatory bodies such as the Financial Conduct Authority (FCA) and the FSCS. With over 20 million users worldwide, eToro is best known for its attractive fee structure and useful trading features.
In terms of the former, eToro operates under a 0% commissions structure – meaning that you do not pay any commissions at all when you buy shares with them. This is one of the main selling points of the platform and ensures operating in the markets is as cost-effective as possible. Additionally, eToro does not charge any monthly account fees or deposit fees which helps traders save even more money.
Furthermore, eToro also offers fractional ownership when you buy Unilever shares UK. This means that you do not have to buy an entire share when you trade the equity market and can instead purchase fractions of a share. Thanks to this feature, traders can invest in eToro’s stock selection from as little as $50 per trade (around £36).
Past performance is not an indication of future results
Finally, if you’re new to the market and want to get some experience before buying Unilever shares, you can utilise eToro’s innovative ‘CopyTrader’ feature. This feature allows you to view the trades of experienced traders in real-time and automatically copy the positions they open. Through this feature, beginner traders can gain market experience passively – and give themselves the chance to make good profits in the process.
Pros
Cons
67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
If you’re looking for an alternative broker to buy Unilever shares UK with, we’d also recommend that you consider Capital.com. Founded in 2016, Capital.com is regulated by credible authorities such as the FCA and CySEC. Through their extensive selection of CFDs, Capital.com provides a versatile and user-friendly platform for users to trade in various markets.
As Capital.com primarily provides CFD trading facilities, you will not purchase the underlying asset. Instead, you’ll buy a contract based on the underlying asset’s price – as the asset’s price rises, so too will the value of your contract. This type of trading provides a straightforward way to speculate on price movements. Additionally, CFDs also allow for leverage – Capital.com offers leverage of up to 1:20 on stock CFDs, essentially allowing you to boost your position size by 20x!
In terms of fees, Capital.com does not charge any commissions and instead only charges a small spread, which is the difference between an asset’s buy and sell prices. Furthermore, Capital.com do not charge any monthly account fees, deposit fees, withdrawal fees, or inactivity fees.
Finally, the account opening process is super-easy and can be completed online. Once signed up, you’re then able to fund your account via many methods, including debit/credit card, bank transfer, or various e-wallets. A minimum deposit of only £20 is required – however, this rises to €250 (around £215) if you use bank transfer.
Pros:
- Educational app for new traders
- Commission-free trading
- Competitive spreads
- Leverage offered when CFD trading
- AI assistant identifies your weak points
- Excellent charting and analysis interface
- £20 minimum deposit
Cons:
- Cannot build custom investment strategies
- CFDs only
71.2% of retail investor accounts lose money when spread betting and/or trading CFDs with this provider.
When you begin stock trading, it's essential to conduct your due diligence before entering the market. This process involves researching important aspects of a company, such as the type of markets they operate in and what their financials look like, to determine whether they are a good investment or not.
Here at BuyShares, we've done all the hard work for you. In the sections that follow, we'll explore all of the crucial areas you'll need to consider when you buy Unilever shares UK, helping you make a more informed investment decision.
What is Unilever?
First thing's first – who are Unilever, and what do they do? Unilever PLC is a multinational consumer goods company that is headquartered in London and is a constituent of the FTSE 100 index. Being comprised of over 400 brands, Unilever's products are incredibly diverse. They include things like food, energy drinks, ice cream, cheese, cleaning products, bottled water, beauty products, home care products, and many more. Some of the top brands that Unilever own include Lynx, Dove, Lipton, and Magnum.
Having been in operation since 1929, Unilever has expanded across the globe over the past 70 years and is currently listed on the London Stock Exchange, the Euronext Amsterdam Exchange, and the New York Stock Exchange. Notably, Unilever was split into two companies until late-2020 – a Dutch arm and a UK arm. However, in November 2020, the two parts merged to become one London-based firm with one class of shares.
According to data from Statista, Unilever consistently makes over €50 billion in yearly revenue. In fact, it has breached this figure in seven of the past nine years, highlighting the sheer scale of the company. The majority of the company’s revenue is derived from personal care products, with food/drink products coming in a close second. Unilever currently has a market cap of $157 billion – making it the 76th largest company in the world.
In recent times, Unilever’s operations have been hampered by the ongoing Coronavirus pandemic – although not as much as some other companies. However, as noted in a recent article by the Guardian, sales of Unilever's products have grown over the first three months of 2021 as consumer demand rises. A lot of this was driven by an increase in online sales, which accounted for 11% of the company's total sales.
Now that you’ve got a good idea of who Unilever is, let's take a look at Unilever share price. At the time of writing, shares are currently priced at 4210p – down around 5% in the year-to-date. However, Unilever's share price was actually down over 15% in late February but has recovered since then.
When researching the best shares to buy, it's essential to consider a few different metrics. In the case of Unilever, these metrics include the price-to-earnings (P/E) ratio and earnings per share (EPS). Metrics such as these indicate how good an investment the company is and help inform trading decisions.
According to data from YCharts, Unilever's P/E ratio currently stands at 24.82. This metric is calculated by dividing the current stock price by the EPS estimate. Essentially, the P/E ratio can be used as a fundamental way of measuring the value of a company's shares against other shares; if the P/E ratio of one company's shares is higher than another's, it can be thought of as 'more valuable'.
Unilever's P/E ratio has remained in the 21-24 range for most of 2020 and 2021; however, this is a far cry from the lows of 14.25 it was at in December 2019. This shows how much the company has recovered and how it has increased in value over the previous two years.
Moving on to the EPS estimate, this is calculated by dividing a company’s profit by the number of shares outstanding. Usually, this metric is used to determine how profitable a company is - the higher the EPS figure, the more profitable the company. There are different types of EPS estimates, but diluted EPS is often used as it incorporates all of the shares the ‘could’ have been issued, giving a more accurate representation.
Unilever's diluted EPS at the end of 2020 was $2.41 – which was up slightly from the $2.38 seen in December 2019. This can be seen as quite impressive that the company has remained in a solid financial position, given the scale of the Coronavirus pandemic. This staying power is one reason why the company can be considered one of the best long term investments in the market.
If you are investing for income, then Unilever might also represent a good buying opportunity. If you own Unilever stock, you are entitled to a dividend payment that is made every quarter. The most recent payment came on March 17th, so if you were to invest today, the following payment you'd be entitled to would occur on June 10th.
Dividends are essentially the distribution of a portion of a company’s profits to shareholders. Some companies pay dividends, whereas other companies keep the profits to reinvest back into operations. Unilever falls into the former, as they pay a quarterly dividend.
In terms of dividend payout, Unilever’s most recent dividend payment came in at 37.6p per share. This is up nearly 3p from the same time a year previous, representing an impressive performance over the past year. Dividend yields are at their highest level for the past few years, so if you are looking for one of the best dividend stocks, then Unilever certainly fits the bill.
So, is now a good time to buy Unilever shares UK? As you can see from the previous sections, the company has maintained a steady level of performance in the face of the COVID-19 pandemic. In fact, sales actually grew 1.9% year on year, which is impressive considering the decrease in consumer spending.
In addition to this, a recent article by Forbes noted that Unilever's net profit also rose by around 10%, totalling $7.4 billion for 2020. When you also consider the scale of the vaccine rollout and the reopening of economies, consumer spending will likely increase. Product categories such as food and personal care will be expected to receive a boost in sales, which will therefore improve Unilever's bottom line.
Q1 Results
Diving into the Q1 report a little deeper, Unilever reported that sales generated from emerging markets increased by around 9.4%. This is excellent news for the company, as it highlights that they are making inroads into these markets and could further expand their presence in the future. Emerging markets such as Mexico and Indonesia have vast numbers of potential customers, so if Unilever can tap into these markets, it would represent a fantastic opportunity for them.
E-commerce sales in Q1 also grew by a remarkable 66%. For a consumer goods company, integrating an e-commerce presence into operations will provide a valuable sales channel for the company. The fact that Unilever is expanding in this area bodes well for future revenues.
Positive Outlook
Overall, Unilever does represent one of the best ways to invest money if you are looking for a dependable company with a reliable dividend. The company has solid margins, which point to a sustainable business model over the long term. Furthermore, the company's management team is some of the best in the business and has the experience and know-how to lead them out of the pandemic.
In fact, the Financial Times reported recently that Unilever is beginning the process of buying back up to £2.6 billion worth of shares. Share buybacks typically occur when a company is in a solid financial position and is thought of as a good sign that the company's stock is valuable. The fact that Unilever's management has decided to repurchase shares is another indication that Unilever's share price could rise as we go forward.
If you would like to add some Unilever shares to your portfolio, this section will show you how to do so. The steps below will walk you through the process of buying Unilever shares with FCA-regulated broker eToro – all without paying a penny in fees or commissions.
Step 1: Open an eToro Account
To buy shares of Unilever, you must first sign up for an eToro account. This is incredibly easy to do and usually takes less than ten minutes to complete. Head over to eToro's website and click 'Join Now' in the top right-hand corner of the homepage. Alternatively, you could also download the eToro app on your smartphone or tablet and sign up through that.
67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
Step 2: Verify your ID and Address
Once you’ve provided your email address and chosen a username and password, you’ll also have to verify yourself before you can trade. To do so, upload proof of ID (e.g. a copy of your driver’s license or passport) and proof of address (a copy of a bank statement or utility bill). eToro will then verify the documents, which usually only takes a minute or two.
Step 3: Deposit Funds
After your documents have been verified, you’ll be able to fund your eToro account. New users must make an initial deposit of $200 – which equates to around £142. However, after your first deposit, this figure drops to $50, which is roughly £35.
eToro provides various ways to make a deposit, and all methods are fee-free. Some of the ways you can make a deposit are listed below:
- Credit/debit card
- Bank transfer
- PayPal
- Neteller
- Skrill
- Klarna
- Trustly
Step 4: Search for Unilever
Now, click into the search bar at the top of the screen and type in ‘Unilever’. You can also type in Unilever’s ticker symbol, ULVR. Click on the first option in the drop-down menu and click ‘Trade’ on the following screen.
In the order box that appears, simply enter the amount of money you’d like to invest. The minimum investment amount is $50 (approximately £35). You can also place a stop loss or change your leverage if you’d like. Once you’re happy, click ‘Set Order’.
67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
Congratulations! You have just invested in Unilever shares – all without paying any commissions!
So, to wrap up this guide, let's take a look at whether Unilever stock represents a buy or a sell opportunity. In our opinion, Unilever is a solid addition to a variety of different equity portfolios. Combining low-volatility growth and a consistent dividend, Unilever is a company that is well established in the market and will offer no surprises when it comes to risk vs return.
The products that Unilever market are evergreen in nature – meaning that they are always in demand from consumers. Food, drink, personal care products, and beauty products are things that people will always need. Due to this, Unilever will always have a market for its products and will always be able to generate solid revenues.
Furthermore, compared to its rivals in the industry such as Diageo, Unilever have pretty solid margins. As much of their revenue is generated from the beauty and personal care range, Unilever can therefore charge a higher price point for these types of goods. This has a knock-on effect on margins and revenues and ultimately leads to more net profit.
Additionally, Unilever represents a good buy opportunity due to the consistent dividend growth they exhibit. Shareholders have experienced quarterly dividend growth for the past few years – including during the midst of the Coronavirus pandemic. So, if you were to add Unilever to your portfolio, you’d get the combination of capital growth and current income too.
To summarise, we believe Unilever is a good buy opportunity at the price it is currently at, and we feel the stock has every chance of increasing in value throughout 2021 and beyond. Currently trading around 25% below the all-time highs experienced in September 2019, this represents a great time to get involved at a lower price point. As always though, this is just our opinion – make sure to conduct your due diligence before investing in the stock market.
Throughout this guide, we've discussed Unilever in detail, examining the company's financials and covering all of the essential points you must consider before investing. With economies around the world reopening and demand for Unilever's products growing, there’s every chance that the Unilever share price could increase and provide a solid return for equity investors.
If you'd like to invest in Unilever, then we'd recommend using eToro. eToro is regulated by the FCA and offers protection for your money under the Financial Services Compensation Scheme (FSCS). Furthermore, eToro allows investors to purchase Unilever completely commission-free and from as little as $50 (approximately £35).
67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
FAQs
Should I buy Unilever Shares?
Unilever looks set to capitalise on the reopening of economies and an increase in consumer spending by providing household brands such as Dove and Ben & Jerry's. Furthermore, the company is diversified across various sectors – so as to demand increases, Unilever's revenues will also increase. These factors combined make Unilever an attractive buy opportunity for many different types of investor.
How much are my Unilever shares worth?
This depends on when you bought them and is based on the price increase/decrease since you opened your position. For example, if you purchased shares at the beginning of March, the price has increased 15% since then. So, if you invested £1000, you'd have made £150 in profit (minus any fees).
Who owns Unilever?
As Unilever is a public company, it is owned by the company’s shareholders. Unilever’s primary listing is on the LSE; however, it also has secondary listings on the Euronext Amsterdam exchange and the NYSE.
What does Unilever make?
Unilever owns a variety of brands that produce consumer goods. These goods are diverse and include food, soft drinks, cheese, cleaning products, bottled water, beauty products, cereals, and many more.
Where is Unilever based?
Unilever is headquartered in London and Rotterdam, and its primary listing is on the London Stock Exchange. However, the company operates worldwide and has a presence in 190 different countries.
