July 25, 2025 a 12:46 pm
📊 Dividend Analysis - Bunge Global S.A.
Bunge Global S.A. (BG) has consistently delivered dividends to its shareholders, with a commendable dividend yield of 3.64%. The firm enjoys a robust market presence in its sector, showcasing stable financial health and reliable dividend growth over the past years despite a recent suspension in 2026.
Overview
Bunge Global S.A. operates within a competitive sector wherein dividend sustainability and growth are key indicators of success. The firm reports a current dividend yield of 3.64% and has maintained a steady dividend history spanning 26 years. However, it's noteworthy that the last cut occurred in 2026, requiring closer examination of its financial strategy and market resilience.
| Metric | Value |
|---|---|
| Sector | Agriculture & Food |
| Dividend yield | 3.64% |
| Current dividend per share | 2.71 USD |
| Dividend history | 26 years |
| Last cut or suspension | 2026 |
Dividend History
Bunge's dividend payment trends reveal consistency, except for the temporary suspension. Such enduring history indicates a strong commitment to rewarding shareholders, albeit the necessity to monitor subsequent financial decisions and market conditions. Monitoring these trends assists investors in forecasting potential income flows and benchmarking against sector standards.
| Year | Dividend per Share (USD) |
|---|---|
| 2026 | 0.7 |
| 2025 | 2.78 |
| 2024 | 2.70 |
| 2023 | 2.58 |
| 2022 | 2.30 |
Dividend Growth
Analyzing dividend growth rates provides insights into the company's capacity to enhance shareholder value progressively. Bunge Global has recorded dividend growth of approximately 6.21% over 5 years and about 9.65% over 3 years, indicating a focused strategy on shareholder returns despite sector volatility.
| Time | Growth |
|---|---|
| 3 years | 9.65% |
| 5 years | 6.21% |
The average dividend growth is consistent over these periods, reflecting moderate but steady enhancement in payout to investors.
Payout Ratio
Payout ratios unveil how earnings and cash flow align with dividend payments, dictating future sustainability. A low EPS-based payout ratio of 33.17% signifies room for dividend increments, whereas a negative FCF-based payout requires immediate attention to cash flow adequacy.
| Key figure | Ratio |
|---|---|
| EPS-based | 33.17% |
| Free cash flow-based | -66.54% |
These variables underscore the necessity for improved operational efficiency, as EPS profitability alone currently supports dividends.
Cashflow & Capital Efficiency
Thorough analysis of cash flow elements captures crucial insights into operational health and capital allocations. Bunge's free cash flow yield and CAPEX commitments must harmonize to sustain long-term dividend commitments.
| Year | 2022 | 2023 | 2024 |
|---|---|---|---|
| Free Cash Flow Yield | -41.14% | 14.55% | 4.83% |
| Earnings Yield | 10.85% | 14.93% | 10.47% |
| CAPEX to Operating Cash Flow | -10.00% | 33.92% | 72.42% |
| Stock-based Compensation to Revenue | 0.10% | 0.12% | 0.12% |
| Free Cash Flow / Operating Cash Flow Ratio | 110.00% | 66.08% | 27.58% |
Cash flow challenges necessitate strategic reallocations, ensuring alignment with dividend policies and capital expenditures.
Balance Sheet & Leverage Analysis
Leverage ratios furnish a landscape of financial obligations relative to assets and equity. Bunge's moderate debt profiles depict a stable risk outlook, but ongoing scrutiny remains essential to pre-emptively address liquidity pressures.
| Year | 2022 | 2023 | 2024 |
|---|---|---|---|
| Debt-to-Equity | 60.96% | 53.05% | 71.81% |
| Debt-to-Assets | 22.88% | 22.69% | 28.59% |
| Debt-to-Capital | 37.87% | 34.66% | 41.80% |
| Net Debt to EBITDA | 1.57 | 0.78 | 1.55 |
| Current Ratio | 1.75 | 2.13 | 2.15 |
| Quick Ratio | 0.87 | 1.20 | 1.27 |
| Financial Leverage | 2.66 | 2.34 | 2.51 |
Such metrics demonstrate satisfactory solvency and leverage structures, though vigilance over liability and asset ratios is advisable.
Fundamental Strength & Profitability
Profitability ratios depict a formidable performance in leveraging equity and assets. Appropriate margins denote potential growth traction, crucial for sustaining investor interest amid fluctuating market dynamics.
| Year | 2022 | 2023 | 2024 |
|---|---|---|---|
| Return on Equity | 17.45% | 20.67% | 11.47% |
| Return on Assets | 6.55% | 8.84% | 4.57% |
| Margins: Net | 2.39% | 3.77% | 2.14% |
| Margins: EBIT | 3.67% | 5.99% | 3.76% |
| Margins: EBITDA | 4.28% | 6.75% | 4.64% |
| Margins: Gross | 5.48% | 8.14% | 6.39% |
| Research & Development to Revenue | 0% | 0% | 0% |
Key profitability indicators reflect sustained financial robustness, fostering investor confidence in enduring competitive market standings.
Price Development
Dividend Scoring System
A thorough dividend scoring system provides a holistic view of Bunge's dividend capabilities and shareholder returns.
| Criteria | Score | Score Bar |
|---|---|---|
| Dividend yield | 4 | |
| Dividend Stability | 3 | |
| Dividend growth | 3 | |
| Payout ratio | 3 | |
| Financial stability | 4 | |
| Dividend continuity | 2 | |
| Cashflow Coverage | 2 | |
| Balance Sheet Quality | 3 |
Total Score: 24/40
Rating
The analysis reveals Bunge Global S.A. possesses formidable strengths in delivering consistent dividends, albeit requiring strategic insight into cash reserves for enhanced robustness. While current performance advocates a rating reflective of calculated stability, careful scrutiny over debt and cash flows alongside prospective market ventures remains essential for upscaling investment allure.