How Far Can This Passive Income Stock Push Pricing?
Unilever (NYSE: UL) has been in the news of late because it is working with shareholder activist Nelson Peltz as it looks to enhance its long-term prospects. However, that story is layered on top of the inflation issues that are impacting the entire consumer staples sector. While both are important to monitor at Unilever, inflation is a short-term headwind that will have the most near-term impact. Here's what Unilever is doing about inflation, how it is working, and why investors should be worried that the current plan can only take the company so far.
Inflation is hitting Unilever just like it is all consumer staples stocks. The maker of Dove, Hellmann's, and Ben & Jerry's is seeing costs increase for the ingredients it uses, for the labor it employs, and for the prices it pays to move goods to its retail-chain customers. This isn't actually unusual, though the inflation being seen today is particularly acute.
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Source Fool.com
