As a diversified agriculture and food company, Bunge (BG) has been subject to the rise in agricultural commodity prices that's been going on for the last few months. In many of the businesses it operates, Bunge acts as a sort of intermediary between agricultural producers and food companies, processing the raw materials into a form that food companies ultimately turn into end products. As a result, many moving parts can impact the company's profitability for any given quarter.
Shareholders no doubt welcome last week's 8.7% dividend increase, but volatile earnings could put the consistency of the firm's future payouts in question. While Bunge's underlying business is solid, and its balance sheet is reasonably strong, it may be best to avoid exposure to this stock until soft commodity prices settle.Bunge shows up on recent lists of 5 Stocks to Bet on Farming and 8 Ag Stocks With Upside.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV