A portfolio of stocks I've been building since September 3, 2019, named Volio, will eventually hold 52 dividend dogs. Volio is the fifth portfolio I've built (at a one dividend dog per-week pace) since 2014. Five portfolios = V for Volio!

Today I'm reviewing the second of five consumer defensive sector stocks primed to join Volio as the fifth of five representing the sector.  One of the stocks I discuss this week could be the forty-ninth overall selection for Volio!

My subject today is a mid-cap farm products company named, The Bunge Ltd. Its trading ticker is BG. This is my second report on Bunge Ltd for this Volio portfolio. I last talked about Bunge on May 19th.

Founded in 1818, Bunge is a global agribusiness and food company with operations along the farm-to-consumer food chain.

It operates in five segments: Agribusiness, Edible Oil Products, Milling Products, Sugar and Bioenergy, and Fertilizer.

The agribusiness segment generates roughly two-thirds of profits and includes the largest oilseed processing capacity globally.

The company is a leading oilseed processor and seller of packaged vegetable oils and other food and ingredients products.

The Sugar and Bioenergy segment produces sugar and ethanol and generates electricity from burning sugarcane bagasse.

The Fertilizer segment offers nitrogen, phosphate, and potassium fertilizers; and SSP, ammonia, ammonium thiosulfate, monoammonium phosphate, diammonium phosphate, triple superphosphate, urea, urea-ammonium nitrate, ammonium sulfate, and potassium chloride.

The company is headquartered in St. Louis, Missouri.

I use three key data points to gauge dividend equities or funds like The Bunge Ltd:

(1) Price

(2) Dividends

(3) Returns

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

BG Price

Bunge's price per share closed at $44.04 Monday. A year ago their price was $55.30. Price fell $11.26 or over 20% last year.

Assuming Bunge's stock trades in the range of $26 to $56 this next year, its recent $44.04 price might rise by $5.96 to reach $50.00 by August 4, 2021.

BG Dividends

Bunge's most recent declared quarterly dividend was $0.50, payable September 1st. That equates to $2.00  annually and yields 4.54% at yesterday's $44.04 share price.

BG Gains?

Adding the $2.00 annual estimated dividend to my $5.96 optimistic estimate of Bunge's price upside shows a $7.96 potential gross gain, per share, to be reduced by any costs to trade the shares.

If we put little over $1,000.00 today in Bunge Ltd at $44.04 we would buy 23 shares of Bunge stock.

A $10 broker fee paid half at purchase and half at sale could cost us about $0.43 per share.

Subtract that $0.43 brokerage cost from my estimated $7.96 gross gain per share results in a net gain of $7.53 X 23 shares = $173.19 for a 17.3% net gain on a $1012.92 investment.

Thus, Bunge Ltd shows a possible 17.3% net gain including a 4.54% dividend yield. It could be more, it could be less.

The above speculation is based on past performance and supposition. Only time and money invested will tell if Bunge Ltd is worth it.