The brilliant blue-chip Iâm discussing here is one which Iâve been happy to spend my own cash on: Unilever (LSE: ULVR).
Since its formation 90 years ago through the union of Britainâs Lever Brothers and Dutch spread manufacturer Margarine Unie, this FTSE 100 firm has gone from strength to strength, moving beyond its continental borders through a mixture of acquisitions and good old-fashioned organic expansion.
A staggering sales record
Right now, Unilever has a product range encompassing more than 400 brands which are used by a jaw-dropping 2.5bn people across the globe EVERY DAY. The key to this popularity? The wide variety of product ranges in which it operates, from ice cream and shower gel, through to bleach and laundry detergent, and the intense pulling power of these brands.
Kantar Worldpanelâs latest âBrand Footprintâ chronicling the worldâs most-demanded labels illustrated perfectly the beloved nature of the Footsie firmâs labels. Of the 17 fast-moving consumer goods (FMCG) brands which are bought 1bn times or more each year, Unilever is proprietor to six. And its Lifebuoy soaps, Sunsilk shampoos, and Knorr food flavourings all sit inside the top 10 most popular brands on this list.
Another healthy acquisition
The enduring appeal of Unileverâs labels over the years then should give you the confidence to buy the FTSE 100 business in expectation of strong and sustained earnings (and consequently dividend) growth many years into the future.
If youâre not convinced though, thereâs another particular reason why Iâm excited by its profits outlook in the near-term and beyond. It’s the companyâs rising might in the consumer health category, an arena which is growing at a rapid pace because of growing health awareness in emerging markets and rising spending power in these regions.
Back in December, Unilever bought out GlaxosmithKlineâs health food drinks portfolio, comprising the likes of Horlicks and Boost, in India and a swathe of other fast-growing Asian countries. These products generated cumulative turnover of âŹ550m last year, and demographic changes in these regions should keep sales pounding higher (Horlicks has grown at a double-digit rate over the past decade and a half).
A lifeboat in tough times
Now no-one is pretending that the trading environment wonât be tough for the consumer goods manufacturers in 2019, and possibly beyond. Both Unilever and rival Reckitt Benckiser have recently bemoaned the âchallengingâ market conditions that are impacting trade at the present time.
Itâs reassuring then that despite these travails the City still expects the aforementioned strength of Unileverâs brands to continue delivering chunky earnings growth (by 9% in 2019 and 11% next year, more specifically).
And so this resilient hero is expected to continue on its path of raising dividends too, resulting in chubby yields of 3.4% and 3.7% for this year and next. If youâre searching for safe-havens that should deliver knockout shareholder returns in the years ahead, I believe that this big-cap is one of the best to buy right now.