Headquartered in San Paulo, Brazil, JBS S.A. ADR (JBSAY) is the largest processor of chicken, beef, pork and lamb in the world. Animal proteins are seeing prices move higher as demand is outstripping supply, explains Bryan Perry, dividend expert and editor of Cash Machine.
The company also produces and commercializes steel cans, plastic resins, soap bases and bars, biodiesel, glycerin, fatty acid, collagen, as well as wet blue, semi-finished and finished leather products. The company also purchases and sells soybeans.
In addition, it is involved in tallow, palm oil, caustic soda, dog biscuits, hygiene and personal care and sausage casings businesses; the operation of distribution centers and harbors; and the provision of cattle fattening, transportation, logistics, warehousing, waste management and recycling services.
Further, the company trades in cooked frozen meat — rounding out a broad set of underlying businesses that spans the globe.
The company generates almost $330 billion in revenue, trades with a price-to-earnings (P/E) ratio of 6X and pays an annual dividend of $1.03 per share, translating to a 7.35% yield.
Because this is a Brazilian company, the data is varied, as are the dividend payments. In 2021, the company paid out dividends in April, August and November. The company reports earnings on March 29, at which time I expect a dividend to be declared.
The stock is trading at $14, up in sympathy with Tyson Foods Inc. (TSN), which recently reported blowout quarterly results yesterday, sending the shares to a new all-time high.
I also want to raise our emerging market exposure in large-cap stocks where inflation serves as a tailwind, and meat processors are raking in huge profits this year. With this investment thesis on the table, let’s get long in this global protein provider today. JBSAY will be added to the Accelerated Income Portfolio.