Hindustan Unilever dividend announcement likely today; know share price outlook by this expert

Hindustan Unilever Dividend alert: Fast Moving Consumer Goods company Hindustan Unilever Limited (HUL) is likely to announce its decision on the interim dividend payout, today. The Board of Directors of the company are likely to consider a proposal for payment of interim dividend for the financial year ending 31 March 2021, the company has said in filing to the exchanges.

The company has kept the record date for the purpose of determining the entitlement of the shareholders for the interim dividend on 29 October 2020.  

Technical and Derivatives Analyst Nilesh Jain at Anand Rathi said that he expected a dividend of Rs 10-12 from the company. The HUL futures are trading at a discount of Rs 10 from the cash market price, so one can expect a dividend around this, he added. 

Hindustan Unilever will also be announcing its second quarter results of this financial year. 

HUL Share price outlook:  Jain said that the outlook for this stock was positive. It was the only stock in this segment to register a life time high even during the lockdown, he added. 

At 11:55 am, HUL stocks are currently trading at Rs 2200.40 on the NSE, up by over 1 per cent from the previous close. In April, this stock achieved its 52-week high of Rs 2614.30. This was a sharp rally from the levels around Rs 1757 on 19 March 2020. 

This stock has seen a major breakout during this week, he said. Jain said that he expected HUL to achieve a target price of Rs 2400 over the next 2-3 months.  

This stock is currently trading above its 21-day moving average and 200-day moving average. The charts show a positive upward move with a likely buy crossover, soon.  

It has a strong support zone around Rs 2000 which should be taken as a stop loss if one is planning to invest in it. The long term target price is Rs 2600, he further said. 

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His strategy recommendation is to wait till the results are announced for the commentary given by the management. He advised investors to buy this stock on dips. This stock will give better returns with a long term perspective.