Is BUNGE GLOBAL SA (NYSE:BG) a Good Fit for Dividend Investing?

Our stock screener has singled out BUNGE GLOBAL SA (NYSE:BG) as a promising choice for dividend investors. BG not only scores well in profitability, solvency, and liquidity but also offers a decent dividend. We'll explore this further.

Looking at the Dividend

ChartMill assigns a proprietary Dividend Rating to each stock. The score is computed by evaluating various valuation aspects, like the yield, the history, the dividend growth and sustainability. BG was assigned a score of 6 for dividend:

• Compared to an average industry Dividend Yield of 4.63, BG pays a bit more dividend than its industry peers.
• BG's Dividend Yield is a higher than the S&P500 average which is at 2.41.
• BG has paid a dividend for at least 10 years, which is a reliable track record.
• BG has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
• BG pays out 34.19% of its income as dividend. This is a sustainable payout ratio.

A Closer Look at Health for BG

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, both in absolute terms and in comparison to industry peers. BG has earned a 5 out of 10:

• An Altman-Z score of 3.59 indicates that BG is not in any danger for bankruptcy at the moment.
• With a decent Altman-Z score value of 3.59, BG is doing good in the industry, outperforming 79.78% of the companies in the same industry.
• A Current Ratio of 2.04 indicates that BG has no problem at all paying its short term obligations.
• With a decent Current ratio value of 2.04, BG is doing good in the industry, outperforming 65.17% of the companies in the same industry.
• With a decent Quick ratio value of 1.12, BG is doing good in the industry, outperforming 68.54% of the companies in the same industry.

A Closer Look at Profitability for BG

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. BG has earned a 6 out of 10:

• BG has a better Return On Assets (4.10%) than 61.80% of its industry peers.
• BG's Return On Equity of 10.34% is fine compared to the rest of the industry. BG outperforms 65.17% of its industry peers.
• BG has a better Return On Invested Capital (6.15%) than 61.80% of its industry peers.
• The last Return On Invested Capital (6.15%) for BG is well below the 3 year average (10.77%), which needs to be investigated, but indicates that BG had better years and this may not be a problem.
• In the last couple of years the Operating Margin of BG has grown nicely.
• In the last couple of years the Gross Margin of BG has grown nicely.

More Best Dividend stocks can be found in our Best Dividend screener.

For an up to date full fundamental analysis you can check the fundamental report of BG

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.