In this article, we discuss the 5 best agriculture stocks to invest in. To read the detailed analysis of the agriculture sector, go directly to 10 Best Agriculture Stocks To Invest In.
5. Bunge Limited (NYSE:BG)
Number of Hedge Fund Holders (Q1): 55
Bunge Limited (NYSE:BG) is a Missouri-based agriculture company. The company also focuses on food processing, grain trading, and fertilizers. It operates in around 40 countries worldwide.
Due to the supply chain issues, Bunge Limited (NYSE:BG) benefited greatly from the high demand in the agriculture business. The revenue from refined and speciality oils came in at $214 million in Q2 2022, compared to $113 million in the same quarter in 2021. Milling revenue stood at $109 million, compared to $34 million a year ago in the same quarter as the company successfully managed the supply chain front. Even after missing the estimates in its Q2 2022 results, the company raised its full-year EPS guidance from $11.50 to $12.
As of August 10, Bunge Limited (NYSE:BG) has a dividend yield of 2.18% with an annual dividend of $2.5. The company increased its dividend to $0.625 for the quarter from the previous $0.525. The quarterly dividend will be paid out on September 2, to the shareholders on record as of August 19.
“Bunge (pronounced BUN-GEE) Ltd (NYSE:BG) is one of the biggest agribusinesses and food companies in the world. There are four worldwide companies that dominate the sector, the others being Archer-Daniels-Midland Cargill, and Dreyfuss. One of our favorite ways to screen for new ideas is following insider buying. When I saw the Form 4 filed by new Bunge CEO Greg Heckman, his purchase of $9 million of BG stock intrigued me. My initial thought was the company gave him the stock as a signing bonus. I contacted BG Investor Relations and asked whether it was a signing bonus or did Heckman actually write a check for $9 million. IR assured me it was his own hard-earned money that he invested in the company he was about to run.
Heckman was a long time executive at Conagra Foods who obviously sensed opportunity at BG. One of his first moves as CEO was to move the company’s HQ from New York to St. Louis, right in the middle of America’s breadbasket. BG had been plagued for years with poor decisions by underperforming management. Heckman’s decision to move to St. Louis was indicative of a no-nonsense style and he would commence cutting expenses and selling non-core assets…” (Click here to see the full text)