Unilever dividend: history and cash cover
Unilever's dividend rose from €1.92 in 2023 to €1.99 in 2025. Unilever's first-half free cash flow was €1.5bn against ordinary dividends of about €2.0bn, so cash did not cover the dividend on its own.
How much does Unilever pay per share?
The base dividend rises from €2.02 per share to €2.08 and €2.14. This extends the slow increase from €1.92 in 2023 to €1.99 in 2025. The bear case holds €1.99 before cutting to €1.80, while the bull case reaches €2.06, €2.20 and €2.35. The restraint reflects first-half free cash flow of €1.5bn against ordinary dividends of about €2.0bn.
| October 2027 | October 2028 | October 2029 | |
|---|---|---|---|
| Earnings | 6.55 (5.89 / 6.98) | 5.47 (4.70 / 5.89) | 5.77 (4.68 / 6.32) |
| Shares (millions) | 2,142 (2,149 / 2,128) | 2,120 (2,145 / 2,111) | 2,099 (2,140 / 2,097) |
| Dividends per share | 2.02 (1.99 / 2.06) | 2.08 (1.80 / 2.20) | 2.14 (1.80 / 2.35) |
| Price to earnings | 16.00 (13.50 / 18.00) | 16.00 (12.50 / 19.00) | 16.00 (12.00 / 20.00) |
Is Unilever's dividend covered by its cash?
The 21.6x trailing P/E falls to 16.5x forward P/E only if earnings improve after the business changes shape. The 4.3% free-cash-flow yield and 3.4% dividend yield sit alongside first-half 2026 free cash flow below dividends and buybacks combined. Computed free cash flow—cash from operations minus capital spending—declined as a share of revenue through 2025 even as margins improved; net debt was €21,259 million in 2025, and payouts exceeded free cash flow by €0.61 per share.
Unilever could bridge the gap with cash already held, sale proceeds and borrowing. It completed a €1.5 billion buyback in 2026 and expects €6 billion of buybacks across 2026–2029. But buybacks improve earnings per share mechanically by reducing the number of shares; they do not prove that Unilever bought cheaply or improved its operations.
| 2025 | 2024 | 2023 | |
|---|---|---|---|
| Free cash flow | 5,142 | 5,576 | 5,858 |
| − Dividends paid | 4,453 | 4,319 | 4,363 |
| − Share buybacks | 1,510 | 1,508 | 1,507 |
| = Paid out more than the free cash flow | 1,350 | 963 | 533 |
| − Acquisitions | 1,674 | 734 | 100 |
| − Debt repaid | 5,775 | 3,846 | 3,976 |
What could change Unilever's dividend?
Management guides to 4.0%–6.0% underlying sales growth in 2026, including 3.0% underlying volume growth. It targets a 20.0% underlying operating margin and expects second-half underlying sales growth of 4.0%–5.0%, increasingly price-led. The scenarios assign 30% probability to the bear case, 50% to base and 20% to bull.
The 28 October 2026 trading statement will test volume as pricing contributes more, especially in Brazil before its January 2027 tax change. Foods is expected to close by mid-2027; proceeds must support debt management and buybacks while lost earnings and separation costs are absorbed. Through 2027–2029, the test is whether volume, Power Brand share gains and savings persist after promotions and exceed transition and stranded costs.
What is Unilever's dividend yield today?
| Today (Oct 11, 2026) | |
|---|---|
| Share price | 4673.5 |
| Free cash flow yield (calculated) | 4.3% |
| Real free cash flow yield (calculated) | 4.1% |
| Dividend yield (calculated) | 3.4% |