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Fresh Del Monte Produce Inc (FDP) is an integrated producer, marketer & distributor of fresh-cut fruit & vegetables.

It operates in three segments, (1) Fresh and value-added products segment, which includes pineapples, fresh-cut fruit, fresh-cut vegetables, melons, vegetables, non-tropical fruit, other fruit and vegetables, avocados, and prepared foods, (2) Banana segment & Other products and services segment, including the third-party freight & logistic services business & (3) The Jordanian poultry and meats business. The largest is the Fresh and value-added products segment.

Geographically, it operates in North America, Europe, Asia, the Middle East, and others, out of which the highest is from North America.

It markets and distributes its products to retail stores, club stores, convenience stores, wholesalers, distributors, and food service operators.

Fresh Del Monte Produce Inc. was founded in 1886 and is based in George Town, Cayman Islands.

Three key data points gauge Fresh Del Monte or any dividend-paying firm.

The key three are:

(1) Price

(2) Dividends

(3) Returns

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

FDP Price

Over the past year, Fresh Del Monte’s share price increased about 4.5% from $26.67 to $27.86 as of Monday’s market close.

If FDP shares trade in the range of $20.00 to $35.00 this next year, their recent $27.86 share price might rise to $31.00 by next year. Of course, FDP price could also drop about the same $3.14 estimated amount or more.

My $3.14 upside is $2.00 under the median of one-year target prices from two analysts tracking FDP for brokers.

FDP Dividend

Fresh Del Monte Produce has paid quarterly variable dividends since March 2002. It missed making Q payments from 2007 to 2010. The most recent $0.25 quarterly dividend was declared August 1st for shareholders of record August 15th payable September 6th. A forward-looking $1.00 annual dividend yields 3.59% at Monday’s closing price.

FDP Returns

To put it all together, a $4.14 estimated one-year gross gain per share shows up when adding FDP’s  $1.00 estimated annual dividend to the estimated price upside of $3.14, equalling $4.14.

A little over $1000 buys us 36 shares at the $27.86 share price.

A $10 broker fee (if charged), paid half at purchase and half at the sale, might take about $0.28 per share out of the $4.14 annual, gross gain to give us a net gain of $3.86 X 36 shares = $138.96 for about a 13.85% estimated net gain for the year.

Furthermore, the $35.90 annual dividend income from $1K invested could be about 1.3 times more than FDP’s $27.86 single share price. By these numbers, Fresh Del Monte Produce Inc. may be an ideal dividend dog.

You might choose to pounce on Fresh Del Monte. It is a 138-year-old dividend-paying Cayman Islands-based agribusiness venture with over a 14-year record paying variable quarterly dividends.

The exact track of FDP future price and dividend will entirely be determined by market action.

Remember the true value of any stock is best realized through personal ownership of shares.

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