Unilever
(Shares Magazine) Shares in Unilever have been “out of favour” since November, when the market began to prefer value stocks to “expensive defensive” companies such as the consumer-goods giant. Disappointing full-year results released in early February have also dampened sentiment, but this dip presents the best buying opportunity in a year. Over the past decade the stock has delivered a 204% return compared with 71% from the FTSE All-Share index. Its products are in demand “in both good and bad economic conditions”; and “it is delivering on positive environmental, social and governance factors”. Buy.
3,974p
DS Smith
(Mail on Sunday) One of the largest listed companies in the UK, paper and packaging group DS Smith’s half-year figures were affected by the pandemic. Sales declined, costs rose and profits slipped by 54% to £97m. But confidence continues to grow and a strong rebound is predicted for the company, which specialises in cardboard boxes for clients ranging from “Nestlé to Next and... L’Oréal to Unilever”. The group makes over 40 million boxes every day, most produced from recycled material; DS Smith is Europe’s largest recycler of paper and cardboard. Despite last year’s turbulence, a 4p dividend has been reinstated. Shareholders should “keep the faith”, and new investors could find value if they buy now.