Why Unilever PLC (NYSE:UL) Is a Top FTSE Dividend Stock to Buy Now

Unilever PLC (NYSE:UL) is a multinational consumer goods company with a strong track record of paying and increasing dividends. With a dividend yield of 3.37% as of January 3, 2025, Unilever PLC is an attractive option for income-oriented investors. The company's commitment to sustainability, innovation, and geographic expansion further enhances its long-term dividend prospects.

Unilever PLC's diversified product portfolio, which includes Beauty & Wellbeing, Personal Care, Home Care, Nutrition, and Ice Cream segments, contributes to its dividend stability and growth. The company's wide range of products and brands, such as AXE, Ben & Jerry's, Cif, Clear, Closeup, Comfort, Cornetto, Dermalogica, Domestos, Dove, Dove Men+Care, Hellmann's, Horlicks, Knorr, LUX, Lifebuoy, Liquid I.V., Magnum, Nutrafol, OMO, Paula's Choice, Pepsodent, Pond's, Rexona, Rexona, Sunlight, Sunsilk, Surf, TRESemmé, Vaseline, Wall's, Breyers, and Yasso, helps to mitigate risks associated with relying on a single product or brand. This diversification allows Unilever PLC to generate stable cash flows, which can be used to fund dividends.

Unilever PLC's geographic expansion has also played a significant role in enhancing its dividend potential. The company operates in various regions, including Asia Pacific, Africa, the Americas, and Europe. This geographic diversification helps Unilever PLC to mitigate risks associated with relying on a single market and tap into new revenue streams. In Q3 2023, developed markets grew 6.9%, while emerging markets saw a 2.9% increase in sales, demonstrating the company's ability to perform well across different regions (Insider Monkey, 2025).

Unilever PLC's commitment to sustainability and innovation is another key factor driving its long-term dividend prospects. The company's investment in research and development (R&D) and innovation helps it to maintain its competitive position and adapt to changing consumer preferences. For example, Unilever PLC's investment in plant-based meat alternatives, such as the acquisition of The Vegetarian Butcher, highlights the company's focus on emerging trends and its ability to adapt to changing consumer preferences. Additionally, Unilever PLC's URefill initiative, launched in Bangladesh, demonstrates the company's commitment to reducing plastic waste and promoting sustainable consumer habits.

Unilever PLC's consistent dividend policy and strong financial performance have contributed to its high dividend yield. The company has a long history of paying and increasing dividends, which helps to attract and retain investors. Unilever PLC's annual dividend has grown from £0.867 in 2000 to £1.48 in 2023, representing a compound annual growth rate (CAGR) of approximately 5.5% over this period (Unilever PLC, 2023). The company's strong financial performance and stable dividend policy have contributed to its high dividend yield, making it an attractive option for income-oriented investors.

In conclusion, Unilever PLC's diversified product portfolio, geographic expansion, commitment to sustainability and innovation, and consistent dividend policy make it a top FTSE dividend stock to buy now. The company's strong financial performance and high dividend yield, combined with its long-term growth prospects, make it an attractive option for income-oriented investors seeking steady, though not spectacular, growth as they earn steady income from dividends.