Golden Agri-Resources Ltd is an integrated palm oil plantation company. It operates through two segments: Plantations and palm oil mills, and Palm products, laurates and others. It trades under the ticker (GARPY)

The plantation and palm oil mills segment comprises the products from the upstream business. The Palm products, laurates and others comprise the processing and merchandising of palm and oilseed-based products i.e. bulk, branded, oleo-chemicals and other vegetable oils.

Additionally, it engages in the production, cultivation, importing, marketing, selling, and distributing palm oil products; sales and logistical support services; cultivation of ornamental plants; production and trading of edible oils; wholesale trade; property investment activities; production and distribution of bottled ionized mineral water and fatty alcohol, acid, derivatives, and other chemical; shipping and logistics; owns and operates shipping vessels.

The majority of the revenue is generated from the Palm products, laurates and other segments. The company generates the majority of its revenue from the Rest of Asia.

The company was incorporated in 1996 and is based in Singapore.

Three key data points gauge Golden Agri-Resources Ltd or any dividend-paying firm.

They are:

(1) Price

(2) Dividends

(3) Returns

Those three basic keys best tell whether any company has made, is making, and will make money.

GARPY Price

Over the past year, Golden Age’s price per share decreased about 6% from $20.60 to $19.36 as of Monday’s market close.

If GARPY’s stock trades in the range of $18.00 to $22.00 this next year, its recent $19.36 share price might get up to $21.00 by next year. Of course, GARPY price could drop about the same $1.64 amount, or more.

My upside estimate of $1.64 is about $1.30 below the average annual price increase over the past three years.

GARPY Dividend

Golden Agri-Resources Ltd recent $0.74 variable semi-annual dividend pans out to $1.28 annually to yield 6.48% at Monday’s closing price.

GARPY Returns

Adding the $1.26 projected annual dividend to my estimated $1.64 price upside, reveals a $2.90 potential gross gain per share for the coming year.

At Monday’s $19.36 closing price, a little over $1000 would buy 52 shares.

A $10 broker fee (if charged), paid half at purchase and half at sale, might cost us about $0.19 per share.

Subtract that maybe $0.19 brokerage cost from my estimated $2.90 gross gain per share makes a net gain amounting to $2.71 X 52 shares = $140.92 or a 14.9% net gain.

In the next year our $1K investment in shares of GARPY could generate about $64.80 in dividends. Furthermore, a single share of GARPY stock at Monday’s $19.36 closing price is just over one-third the income generated from $1000.00 invested.

So, by my dogcatcher ideal, this can be the time to buy Golden Agri-Resources Ltd  based on its estimated dividends for 2023. The dividend from $1k invested is 3.35 times greater than the GARPY single-share price. Consider yourself alerted.

This may be a time to pounce on Golden Agri-Resources Ltd. But beware, its dividend and price are volatile, and nowhere near its all time $63.38 high posted April 5, of 2012.

The foregoing article is based on past history of Golden Agri-Resources Ltd. The only true measure of future performance is from active investment in the company.

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