Dividends and Unilever picks Rotterdam for main headquarters

For all companies picking a location is a big deal. A correct location will allow the company to attract the people it needs to continue to be in business for a long time. Large companies often have an office building or structures for their corporate office and for a company such as Unilever they are divided between two companies. The Anglo Dutch company has its offices in London and Rotterdam and has decided while London will continue to play a significant role, Rotterdam is where the company will have its main headquarters. In a column by Kate Holton and Paul Sandle of Reuters, Unilever Chair Marijn Dekkers said the Board of Directors was taking a 30 to 50 year decision not one based on Brexit or recent political events. The company was formed with the 1930 merger of margarine make Margarine Unie and British soap maker Lever Brothers. The company employs 170,000 people around the world and generates $86 billion in revenues.

The company had talks with both heads of countries, but the Dutch offered a better deal.  The company will restructure to have Beauty & Personal Care and Home Care based in London while Foods and Refreshment will be in Rotterdam.

Linking to dividend paying stocks, with Unilever the company is making a 30 to 50 year decision. As long as Unilever can continue with its margins, the company should be operating just fine in 30 to 50 years. With this type of company you need to ensure while it maybe steady but is it continuing to make money?

There are more questions than answers, till the next time – to raising questions.

 

 

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