Uni lever shares

by Christopher Holliday
(Perth Australia )

If I had 4000 unilever shares in 2002 adjusting for the 20/9 share restructure and taking into account I re invested my dividends into new shares as a DRIP with unilever how many shares roughly would I now own??

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Jun 11, 2019
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Unilever Shares
by: Mike

Hello Christopher,

Back in 2006, Unilever did a 9 for 20 consolidation. If you owned 4,000 shares before this consolidation (as you would have if you have owned from 2002) then you'd now own 1800 shares. However, you've asked about dividends reinvested as well.

Unilever has been a consistent dividend payer (and raiser of dividends) throughout this period. I have gone back to 2002 and looked at their dividend history and worked out how many shares you would have purchased through a dividend reinvestment program. The answer is you would have almost doubled your holding as you would have purchased around another 1600 shares. This would mean you would now have around 3,400 shares.

Please remember that this is very much an approximation as it does not include the costs of the DRIP (including stamp duty) and execution levels can vary. A small difference in the early years can magnify enormously in later years.

That said, there is no doubt that you would have done very well through the years. Between 2002 and today (June 2019), your total returns with dividends reinvested should be close to 800% which equates to more than 12% annualised. Even without reinvesting dividends, your returns would be over 8% annualised.

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