February 25, 2026 a 11:31 am
BG: Dividend Analysis - Bunge Global S.A.
Bunge Global S.A. offers a compelling dividend profile within the agricultural sector. With a robust dividend history spanning over 26 years, the company demonstrates reliability and consistency in shareholder returns. Recent data shows moderate but steady dividend growth, reflecting a stable financial standing. Investors seeking long-term dividend income may find value in Bunge's strategic financial management and sector resilience.
Overview
Bunge Global S.A. operates in the agricultural sector, offering critical insights into its dividend strategies and overall financial performance.
| Metric | Value |
|---|---|
| Sector | Agricultural |
| Dividend yield | 2.30% |
| Current dividend per share | 2.77 USD |
| Dividend history | 26 years |
| Last cut or suspension | None |
Dividend History
Bunge's sustained dividend distributions highlight its commitment to shareholder value. The extensive dividend history is a testament to its robust business model and resilience across economic cycles.
| Year | Dividend per Share (USD) |
|---|---|
| 2026 | 0.70 |
| 2025 | 2.78 |
| 2024 | 2.70 |
| 2023 | 2.58 |
| 2022 | 2.30 |
Dividend Growth
The growth of dividends over the last three and five years demonstrates Bunge's incremental improvements and strategic financial planning, providing valuable insights into future expectations.
| Time | Growth |
|---|---|
| 3 years | 6.52% |
| 5 years | 6.81% |
The average dividend growth is 6.81% over 5 years. This shows moderate but steady dividend growth.
Payout Ratio
The payout ratio indicates how much of Bunge's earnings are distributed as dividends, providing a measure of sustainability and room for growth.
| Key figure | Ratio |
|---|---|
| EPS-based | 66.08% |
| Free cash flow-based | 180.63% |
The EPS payout ratio is a relatively healthy 66.08%, indicating sufficient retained earnings for reinvestment. However, the FCF-based payout ratio of 180.63% suggests reliance on borrowed funds, posing risk for dividend sustainability.
Cashflow & Capital Efficiency
The cash flow profile is crucial for understanding operational efficiency and the ability to fund dividends and growth initiatives.
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Free Cash Flow Yield | 0.15% | 4.83% | -6.24% |
| Earnings Yield | 14.93% | 10.47% | 5.52% |
| CAPEX to Op. Cash Flow | 0.34 | 0.72 | 2.15 |
| Stock-based Comp. to Revenue | 0.12% | 0.12% | 0.08% |
| FCF/Op. Cash Flow Ratio | 0.66 | 0.27 | -1.15 |
The cash flow and capital efficiency analysis indicates potential issues in consistent free cash flow availability, highlighted by the negative ratio in 2025, posing challenges to covering dividend payouts sustainably.
Balance Sheet & Leverage Analysis
Understanding the balance sheet strength and leverage ratios is critical for assessing the company's financial resilience and risk exposure.
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Debt-to-Equity | 0.53 | 0.72 | 0.98 |
| Debt-to-Assets | 0.23 | 0.29 | 0.38 |
| Net Debt to EBITDA | 0.78 | 1.55 | 6.42 |
| Current Ratio | 2.13 | 2.15 | 1.61 |
| Quick Ratio | 1.20 | 1.27 | 0.74 |
Bunge's financial leverage and liquidity metrics suggest a strong short-term liquidity position in 2023 and 2024, but increasing leverage by 2025 could pressure future financial flexibility.
Fundamental Strength & Profitability
Analyzing the fundamental and profitability metrics offers insights into the firm's operational efficiency and competitive position.
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Return on Equity | 20.67% | 11.47% | 4.70% |
| Net Profit Margin | 3.77% | 2.14% | 1.16% |
| Gross Profit Margin | 8.14% | 6.39% | 4.85% |
| R&D to Revenue | 0% | 0% | 0% |
Bunge's profitability metrics over the years reflect strong earnings power, although the decline in 2025 ROC and margins requires attention regarding future performance sustainability.
Price Development
Dividend Scoring System
| Category | Score | Score Bar |
|---|---|---|
| Dividend yield | 3 | |
| Dividend Stability | 5 | |
| Dividend growth | 4 | |
| Payout ratio | 3 | |
| Financial stability | 4 | |
| Dividend continuity | 5 | |
| Cashflow Coverage | 2 | |
| Balance Sheet Quality | 3 |
Overall Score: 29/40
Rating
In conclusion, Bunge Global S.A. maintains a positive outlook for dividend investors with strong stability and consistent distributions. While challenges exist in maintaining adequate free cash flow coverage, Bunge's overall financial robustness lends credibility to its dividend philosophy. Consider portfolio diversification with attention to liquidity metrics in future evaluations.