It’s almost a year since I ejected Unilever (LSE: ULVR) from my Self-Invested Personal Pension, and I can’t say I’ve missed it. I’ve just noticed that its shares go ex-dividend on Thursday (26 February). Any investor considering the FTSE 100 stock might be tempted to buy before then, to secure the next payout. So is it worth buying today?

On 12 February, Unilever declared a quarterly interim dividend of 46.64 euro cents (40.52p) per share. Anyone buying before the ex-dividend date will get that on 10 April. This isn’t the most dazzling income stock on the FTSE 100. The current trailing yield is around 3.1%. However, management has a pretty decent track record of raising shareholder payouts over time.

Unilever has increased shareholder payouts every year this millennium, bar the financial crisis in 2009 and freezes in 2022 and 2023 when the dividend held at 170.72 euro cents. It’s since edged up to 175.88 cents in 2024, then 182.48 cents in 2025. The yield isn’t huge but the income stream seems resilient. As ever, though, there are no guarantees.

FTSE 100 income growth stock

The share price is another matter. Once a steady monster performer, it’s been bumpier in recent years. The stock is up 9% over one year and 22% over five. With dividends included, that’s respectable, but hardly thrilling.

Why did I sell? At the time, I argued that Unilever’s “sprawling operations had led to a lack of focus”. It was trying to sharpen up by concentrating on 30 ‘Power Brands’, but progress looked patchy. I also questioned whether a lofty price-to-earnings (P/E) ratio of around 24 left much room for share price growth, unless sales and profits accelerated meaningfully.

Belatedly, the shares have sprung into life, jumping 12.7% in the last month. They were lifted by full-year results on 12 February, Unilever’s first since spinning off its ice-cream division.

Underlying sales growth for 2025 came in at 3.5%, in line with forecasts. Hardly eye-popping, although momentum picked up in the fourth quarter. Full-year profit surged 66% to €9.47bn, but that’s flattered by a €3.79bn gain from the ice-cream demerger. Profit from continuing operations rose a more modest 4.6% to €5.68bn. A €1.5bn share buyback was welcome.

A slightly lower P/E

Unilever’s valuation looks a little less demanding today, with the P/E dipping just below 20. The outlook doesn’t exactly blow me away though. Unilever expects 2026 sales growth at the bottom end of its 4% to 6% target range, reflecting softer market conditions. Inflation may be easing, but the cost-of-living squeeze hasn’t vanished.

As a defensive stock, Unilever has arguably done its job during choppy times. It still owns a formidable portfolio of everyday brands and is pushing harder on cost savings, cutting £670m last year while sharpening its focus on more profitable emerging markets.

Last week, analysts at Berenberg said the group has completed its transformation into “a simpler, more agile, faster-growing and more profitable business”. They still downgraded the shares from Buy to Hold though.

I think Unilever is worth considering for investors seeking steady income and growth. But personally, I can see more exciting opportunities on the FTSE 100, and will aim for those instead.