It is worth it … £ 10,000 invested in Unilever shares 12 months …

'Explosive', 'dynamic' and 'high octane' are some of my favorite words. They are not those who normally use to describe Uneilever (LSE: Ulvr) Actions, but that could be unjust.

In the last 12 months, the action has increased 13.5%. That is enough to convert an investment of £ 10,000 into £ 11,350, and that is before reaching the dividend.

It's time to wake up

Unilever's actions have come alive during the last year or so. But before that, investors had to wait a long time for any significant sign of progress.

A year ago, the price of the action was just below £ 40. Unfortunately, there is also where the shares were quoted in early 2017.

Of course, this does not mean that the action was dead money during that time. The investors that bought in March 2017 and remained at the beginning of March 2024 raised £ 9.94 per action in dividends.

With just under £ 40 per share, that is a 24% yield in seven years. In this context, the stock rises more than 10% in one year is a fairly surprising change.

A change of direction

The price of climbing shares has coincided with a change in the company's approach. Unilever has been disinvesting its weakest brands and focusing its investment behind its most successful lines.

It is fair to say that the results have been impressive: in 2024, the underlying operational income grew by 12.6%. The last time this happened was before 2017.

The epitome of this is Unilever's decision to unintentionally division of ice cream this year. While Ben and Jerry's, Magnumand Wall They are strong brands, production costs are ultimately unattractive.

Given the success of the strategy in the last 12 months, it is a surprise to see that the company is also looking to disin its CEO. That is the most recent news.

Impulse

Last month, the news arose that the CEO Hein Schumacher was going to be replaced as executive director by the financial director Fernando Fernández. The reason given by the Board is to increase the rate of change.

Exactly what could be the next stage is not clear. But an idea is that it could involve the disinfece of Unilever's food brands, which include Pot and Noodles.

Growth in this category has been weak for a while. And it is also speculated that the company could seek to increase its existing strengths in beauty and personal care through acquisitions.

This is risky. While the company has recently been successful when cutting its portfolio, trying to grow buying other businesses introduces the danger of paying excess for growth.

Is there more to come?

Investors who bought Unilever shares 12 months ago should probably be very satisfied with their yields so far. And I think it is worth considering today's prices.

The company is clearly looking to continue advancing. And although the growth through the acquisition is risky, it is not much imagination to see where a potential objective can be found.

Not so long ago that Unilever tried to buy Haleón for £ 50 billion. With the company that currently has a market capitalization of £ 34 billion, another look at the shares may not be out of discussion. But that is just me speculating, of course.