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 poised to join my Volio folio this week. This could be my thirty-eighth pick for Volio!
That consumer defensive sector includes twelve industries all related to providing convenient packaged goods we've just gotta have. Industries like: beverages, brewed, soft, or distilled; confectioners; discount stores; education & training; farm products; food distribution; grocery stores; household & personal products; packaged goods; tobacco.
My subject today is a farm products supplier named, Bunge Ltd. Its trading ticker symbol is BG. This is my first ever report on Bunge Ltd.
Founded in 1818, Bunge is a global agribusiness and food company with operations along the farm-to-consumer food chain.
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, milling, bioenergy, and fertilizer products.
The company is headquartered in St. Louis, Missouri.
I use three key data points to gauge dividend equities or funds like Bunge Ltd:
(1) Price
(2) Dividends
(3) Returns
Besides those three, several other keys will finally unlock an equity or fund in which to invest, or not.
Those three basic keys, however, best tell whether a company has made, is making, and will make money.
BG Price
Bunge's price per share closed at $35.18 yesterday. A year ago their price was $51.83. Market price dropped $16.65 or just over 32% in the past year.
Assuming Bunge's stock trades in the range of $24 to $48 this next year, its recent $35.18 price might rise by $9.82 to reach $24.50 by May 18, 2021.
BG Dividends
Bunge's most recent declared quarterly dividend was $0.50 payable June 1st. That $0.50 Q dividend equates to $2.00 annually and yields 5.69% at Friday's $35.18 share price.
BG Gains?
Adding the $2.00 annual estimated dividend to my $9.82 optimistic estimate of Bunge's price upside shows an $11.82 potential gross gain, per share, reduced by any costs to trade those shares.
A little under $1,000.00 invested today in Bunge Ltd shares at their $35.18 price, buys 28 shares of BG stock.
A $10 broker fee paid half at purchase and half at sale could cost about $0.36 per share.
Subtract that $0.36 brokerage cost from my estimated $11.82 gross gain per share results in a net gain of $11.46 X 28 shares = $320.88 for a 32.1% net gain on a $985.04 investment.
Bunge Ltd shows a possible 32.1% net gain including a 5.69% 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.
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