Today, I’m looking at the latest 2018/2019 dividend forecasts for key UK consumer staples stocks including Unilever, Diageo, British American Tobacco and Imperial Brands.
I review analysts’ dividend estimates on a quarterly basis, as they constantly fluctuate.
All figures are sourced from Stockopedia.
Analysts currently expect Unilever (LON: ULVR) to pay the following dividends:
2018 – €1.54 per share
2019 – €1.70 per share
At the current share price of 4,014p, those payouts equate to yields of 3.3% and 3.7%.
Over the last three months, analysts have downgraded their dividend estimates marginally, by €0.009 for 2018 and by €0.007 for 2019.
Analysts currently expect Diageo (LON: DGE) to pay the following dividends:
2018 – 65.6p per share
2019 – 70.4p per share
At the current share price of 2,493p, those payouts equate to yields of 2.6% and 2.8%.
Over the last three months, analysts have downgraded their estimates a tad, by 1.39p for 2018, and 0.47p for 2019.
British American Tobacco
Analysts currently expect British American Tobacco (LON: BATS) to pay the following dividends:
2018 – 202.2p per share
2019 – 218.6p per share
At the current share price of 4,311p, those payouts equate to yields of 4.7% and 5.1%.
Over the last three months, analysts have upgraded their dividend estimates for BATS, by 3.35p per share for 2018 and by 4.28p per share for 2019.
Analysts currently expect Imperial Brands (LON: IMB) to pay the following dividends:
2018 – 187.2p per share
2019 – 203.8p per share
At the current share price of 2,555p, those payouts equate to yields of 7.3% and 8.0%.
Over the last three months, analysts have downgraded their dividend estimates for IMB, by 0.93p for 2018 and by 1.87p for 2019.
Any good opportunities?
The tobacco stocks – BATS and IMB – look particularly attractive from a dividend investing point of view at present, in my opinion. Both have been significantly out of favour recently, pushing their yields up to levels not seen in years. Both companies are cash generative, and are forecast to lift their dividend payouts this year. I feel that sentiment towards Imperial Brands may be slowing improving finally, after a long period of share price weakness.
I also believe that Unilever looks relatively attractive under the 4,000p mark. Just a few weeks ago, it was trading below 3,700p. That’s below the price Warren Buffett was prepared to pay for the company last year. Unilever doesn’t have the highest yield in the FTSE 100, but the company does have an outstanding dividend growth track record. The £118bn market cap company has compounded its dividends by 8% per year since 1952, according to fund manager Nick Train.
Disclosure: Edward Sheldon, CFA owns shares in Unilever, Diageo and Imperial Brands.
This article is provided for general information only and is not intended to be investment advice. The value of an investment may fall. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.