July 30, 2025 a 11:31 am
BG: Dividend Analysis - Bunge Global S.A.
Bunge Global S.A. demonstrates a robust dividend profile with a consistent track record, indicative of its commitment to shareholder returns. The company's efforts in maintaining a stable dividend yield, coupled with significant growth over the years, highlight its financial stability and long-term sustainability. Investors might find the dividend history appealing due to its reliability, notwithstanding the recent dividend cut, which appears to be an isolated event likely tied to strategic capital allocation.
📊 Overview
The overview presents a snapshot of Bunge Global's current dividends and sector positioning.
| Metrics | Detail |
|---|---|
| Sector | Agriculture and Commodities |
| Dividend yield | 3.67 % |
| Current dividend per share | 2.71 USD |
| Dividend history | 26 years |
| Last cut or suspension | 2026 |
🗣️ Dividend History
Bunge Global S.A. has paid dividends reliably over 26 years, establishing market trust and supporting a strong investment thesis. A consistent dividend history signals prudent financial management.
| Year | Dividend per Share (USD) |
|---|---|
| 2026 | 0.70 |
| 2025 | 2.78 |
| 2024 | 2.70 |
| 2023 | 2.58 |
| 2022 | 2.30 |
📈 Dividend Growth
Dividend growth is a key indicator of financial health, providing insights into earnings reliability and management effectiveness.
| Time | Growth |
|---|---|
| 3 years | 9.65 % |
| 5 years | 6.21 % |
The average dividend growth is 6.21 % over 5 years. This shows moderate but steady dividend growth.
✅ Payout Ratio
The payout ratio reflects the proportion of earnings paid as dividends; it's crucial in assessing sustainability.
| Key figure | Ratio |
|---|---|
| EPS-based | 33.17 % |
| Free cash flow-based | -66.54 % |
The payout ratios suggest that while the EPS-based ratio is within conservative bounds, the negative FCF-based ratio might indicate operational cash constraints.
⚖️ Cashflow & Capital Efficiency
Cashflow metrics reflect the net cash from operations and capital allocation efficiency, essential for dividend sustainability and growth prospects.
| 2024 | 2023 | 2022 | |
|---|---|---|---|
| Free Cash Flow Yield | 4.83 % | 14.55 % | -41.14 % |
| Earnings Yield | 10.47 % | 14.93 % | 10.85 % |
| CAPEX to Operating Cash Flow | 72.42 % | 33.92 % | -10.00 % |
| Stock-based Compensation to Revenue | 0.13 % | 0.12 % | 0.10 % |
| Free Cash Flow / Operating Cash Flow Ratio | 27.58 % | 66.08 % | 110.00 % |
The cash flow variations highlight a need for improved capital efficiency, especially given the negative FCF yield recently.
💸 Balance Sheet & Leverage Analysis
Analyzing leverage and liquidity metrics helps assess financial stability and the company's ability to meet its obligations.
| 2024 | 2023 | 2022 | |
|---|---|---|---|
| Debt-to-Equity | 71.81 % | 53.05 % | 60.96 % |
| Debt-to-Assets | 28.59 % | 22.69 % | 22.88 % |
| Debt-to-Capital | 41.80 % | 34.66 % | 37.87 % |
| Net Debt to EBITDA | 1.55 | 0.78 | 1.57 |
| Current Ratio | 2.15 | 2.13 | 1.75 |
| Quick Ratio | 1.27 | 1.20 | 0.87 |
| Financial Leverage | 2.51 | 2.34 | 2.66 |
The figures suggest a stable leverage position with improving liquidity. However, the variability in debt levels prompts cautious monitoring.
🏦 Fundamental Strength & Profitability
Profitability ratios such as ROE and margin profiles serve as indicators of financial performance efficiency.
| 2024 | 2023 | 2022 | |
|---|---|---|---|
| Return on Equity | 11.47 % | 20.67 % | 17.45 % |
| Return on Assets | 4.57 % | 8.84 % | 6.55 % |
| Margins: Net | 2.14 % | 3.77 % | 2.39 % |
| EBIT Margin | 3.76 % | 5.99 % | 3.67 % |
| EBITDA Margin | 4.64 % | 6.75 % | 4.28 % |
| Gross Margin | 6.39 % | 8.14 % | 5.48 % |
| Research & Development to Revenue | 0 % | 0 % | 0 % |
While the profitability metrics showcase strong ROE growth, low R&D investment might impact future innovation-driven growth.
🧮 Dividend Scoring System
| Criteria | Score | |
|---|---|---|
| Dividend yield | 4 | |
| Dividend Stability | 3 | |
| Dividend growth | 3 | |
| Payout ratio | 4 | |
| Financial stability | 4 | |
| Dividend continuity | 2 | |
| Cashflow Coverage | 3 | |
| Balance Sheet Quality | 4 |
Total Score: 27/40
📊 Rating
Bunge Global S.A. maintains a healthy dividend profile with a balanced yield and steady growth over time. Despite a recent dividend cut, the company's structural strengths suggest resilience. Careful monitoring of cash flow sufficiency and debt levels is advisable. Overall, Bunge Global S.A. is a promising investment for those seeking stable, long-term dividend returns.