Image Source: TM Editors’ note: This article discusses a penny stock and/or microcap. Such stocks are easily manipulated; do your own careful due diligence.Adecoagro SA () is a Luxembourg-based agricultural company. It is involved in a wide range of businesses, including farming crops and other agricultural products, dairy operations sugar, ethanol, energy production, and land transformation.The company operates through three segments namely (1) Farming, (2) Sugar, Ethanol, and Energy, and (3) Land Transformation.The Farming segment consists of planting, harvesting, and sale of grains, oilseeds and fibers, rice, and the production and sale of dairy products.The Sugar, Ethanol, and Energy segment consists of cultivating sugar cane which is processed in owned sugar mills and transformed into ethanol.The Land Transformation segment comprises the identification and acquisition of underdeveloped and under-managed farmland.The company was founded in 2002 and is based in Luxembourg.Three key data points gauge Adecoagro or any dividend-paying firm.The key three are:(1) Price(2) Dividends(3) ReturnsThose three keys also best tell whether any company has made, is making, and will make money.AGRO PriceShare price increased 27.75% over the past year from $7.83 to $10.28, as of Monday’s market close.In the past 3 years, the company’s share price has rarely been less than $7.80 nor more than $13.15. It’s all-time high price of $13.91 was reached as a spike on February 4, 2011.If shares trade in the range of $9.00 to $14.00 this next year, the recent $10.28 share price might grow to $13.40. Of course, AGRO shares could also drop about the same $3.12 estimated amount or more.My $3.12 price upside estimate is based on the median of obeyer target prices from seven analysts tracking AGRO for brokers.AGRO DividendAdecoagro has paid variable semi-annual dividends since May 2022. The company’s most recent SA dividend of $0.174 was paid on November 27th to shareholders of record prior to November 12th. The company declared the dividend on November 1st.A forward-looking annual dividend of $0.348 yields 3.39% per Monday’s closing price.AGRO ReturnsPutting it all together, a $3.47 estimated annual gross gain per share shows up by adding Adecoagro’s annual $0.35 dividend to the estimated price upside of $3.12, which totals that $3.47 gross gain.A little over $1000 buys 97 shares at Friday’s $10.28 share price.A $10 broker fee (if charged), collected half at purchase and half at sale, might take about $0.10 per share out of the $3.47 gross gain to give us a net gain of $3.37 X 97 shares = $326.89 for about a 33% estimated net gain on the year.Furthermore, a $33.90 annual estimated dividend paid from $1k invested in AGRO is over 3 times greater than the $10.28 single-share price. By these numbers, AGRO may be an ideal consumer staple dividend dog.Therefore, you might choose to pounce on Adecoagro SA. It is a soon-to-be 23-year-old variable semi-annual dividend-paying agra-industrial concern with a 3-year dividend record.The exact track of Adecoagro’s future price and dividend will entirely be determined by market action and company finances.Remember the best measure of stock value is through direct ownership of shares.More By This Author:
Current Report: Adecoagro
