Their spinoffs would fuel your returns

Article Excerpt

These two global leaders continue to shrink their operations. That’s good news for investors, as markets tend to prefer—and reward—companies with easy-to-understand businesses rather than those with complex conglomerate structures (see box below for more info). UNILEVER PLC (ADR) $60 is a buy for aggressive investors. The company (New York symbol UL; Consumer sector; Shares outstanding: 2.6 billion; Market cap: $156.0 billion; Dividend yield: 3.1%; Takeover Target Rating: Lowest; www.unilever.com) is one of the world’s largest makers of branded and packaged consumer goods. Unilever is now conducting a strategic review of its tea business to add investor value. The unit’s popular brands include PG Tips, Lipton, Brooke Bond and Tazo Tea. It has annual sales of about $3.3 billion, or 6% of the total. In 2019, Unilever’s tea business saw overall volumes decline as demand for its black tea products in developed countries slipped. Higher prices and stronger sales in emerging markets helped to offset that decline. In recent years, the company has expanded into the fruit…

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