Bunge (BG) paid $549 million to shareholders through dividends and share repurchases in 2015. The company paid $249 million as dividends in 2015. Bunge has a dividend yield of 2.2% as of June 9, 2016. The company’s management raised the dividend at a CAGR (compounded annual growth rate) of 9.6% over the past five years. For 2015, the company gave a total of $1.4 per share to shareholders in the form of dividends.
On May 24, Bunge announced that its Board of Directors had approved a 10.5% increase in the company’s regular quarterly common share cash dividend from $0.38 to $0.42 per share. The increased dividend will be paid on September 2, 2016, to shareholders of record on August 19, 2016.
Along with this, Bunge also declared a quarterly cash dividend of $1.22 per share on its 4.88% cumulative convertible perpetual preference shares. This will be paid on September 1, 2016, to shareholders of record on August 15, 2016. In the first quarter of 2016, Bunge returned $243 million in cash to shareholders through dividends and share repurchases.
The company purchased a total of $600 million worth of shares in 2014 and 2015. Bunge announced a $500 million share repurchase program in May 2015. In 2016, the company has repurchased $200 million in shares year-to-date. $181 million of this was in the first quarter, and $19 million was in the second quarter.
Peers’ dividend yield
- Syngenta: 2.7%
- Ingredion: 1.5%
- Archer Daniels Midland: 2.7%
The FlexShares Morningstar Global Upstream Natural Resources Index ETF (GUNR) invests 1.4% of its holdings in BG, and the PowerShares DWA Consumer Staples Momentum Portfolio (PSL) invests 2.5% of its holdings in INGR.