If you are into investing, you may have already found yourself thinking about agriculture stocks dividends that you can bank on to earn an income. The one thing that we all know about the agriculture industry is that it started very many years ago, and it is here to stay.
The consistent growth of the global population has proven quite significant in the determination of the trends in the agriculture sector. The general truth is that the increase in population creates a demand for the production of more food. This is, in one way or another, bound to create the demand for a wide variety of agriculture stocks.
Characteristics of the agriculture industry
Before you can even get started with agriculture stocks, you should be well aware of the main characteristics of this industry. They include:
- It has a stable long-term demand.
- It is one of the few industries that have stood the test of time
- It is currently benefitting significantly from the advancement of technology.
With the above characteristics in mind, we can now proceed to discuss some of the best-performing stocks that investors are using to make their income.
Best agriculture stocks-Those With Impressive Dividend Yields
Archer Daniels Midland (ADM)
Archer Daniels Midland is known for its effectiveness in the sourcing, transportation, processing, and distribution of a variety of products. Its main operation is the processing of corn, where it tries to create a variety of corn-based products, including sweeteners, starches, as well as bioproducts.
This company’s Agricultural segment is characterized by:
- Unique transportation networks
- Port operations – for the purchase, sale, storage, and transportation of various commodities.
ADM also has an oilseeds processing segment that handles the processing of commodities such as:
- Sunflower seeds
Adm transforms the above seeds into vegetable oil equivalents or protein meals.
The company’s Wild Flavors and Specialty Ingredients segment is well-known for the manufacture, sale, and distribution of:
- Proteins, and
Investors can purchase Archer Daniels Midland stock and earn dividend yields of 4,81%. ADM has been increasing the dividends for 45 years in a row. With its credit rating of A from S&P, this company is definitely one that potential investors can trust to help them make money via stock ownership.
This company came to birth back in 1925 and has grown to be one of the largest manufacturers of heavy machinery that is used in various industries. The consistent global economic growth over the past few years has contributed to the positive growth of this company. Its markets have been gradually increasing, thus fueling the increase in the value of the company on the overall.
CAT also offers services. Services are actually expected to catalyze the long-term growth of this company since it has plans to double the sales in its Machinery, Energy, & Transportation (ME&T) services to roughly $28 billion come 2026.
Caterpillar has established its position in the market as a shareholder-friendly firm. It has a 2.9% dividend( this has been on an increase for the last 25 consecutive years).
Wilmar International Limited (WLMIF)
Wilmar International Limited is a popular Singapore-based agribusiness firm that deals with:
- The cultivation of oil palm
- Oilseed crushing
- The refining of edible oils
- Milling of sugar
This company also deals with the manufacture of a variety of consumer products, biodiesel, fertilizers, and many others. With a market capitalization of $15.1 billion, this company is definitely one that is worth looking into. Its dividend yield is currently at 3.06%.
Bunge Limited (BG)
This company has been around since 1818. Presently, it exists as a holding company, whose main business is to supply and transport agricultural products. The main segments that this company operates through are:
- Edible Oil Products
- Milling Products
- Sugar and Bioenergy
This company is appearing on this list owing to very strong growth coupled with its shareholder-friendly management approaches. The company has proved its commitment to investors by ensuring that they get massive returns each year. Bunge Limited pays its investors dividends of $2.0 per share or a dividend yield of more than 4% p.a.
The Mosaic Company (MOS)
Mosaic is a reputable crop nutrition company whose main focus is potash and phosphate. These are two of the very crucial crop production nutrients. Mosaic usually mines and processes the two nutrients, then ships the end products to its customers through ships, rail, or barge.
Mosaic generally has a positive long-term growth prospect arising from the rising demand for food. Its positive momentum is likely to continue with there being expectations that the prices of both potash and potash are expected to be on the rise in the foreseeable future. With farmers trying to adjust their sails to ensure that despite there being major negative effects resulting from the government’s reaction to Corona, there is sufficient food to meet the growing demand in the market.
Unfortunately, The Mosaic Company does not offer a very attractive dividend. It currently offers a quarterly dividend of about $0.05 per share, which translates to an annualized dividend yield of about 1.7%. These returns are not as impressive as the other firms on the list, but they have a lot of room for growth.
These are some of the biggest giant companies in the agriculture sector that you can have a look at if you are really interested in earning an income through dividend yields. With these companies offering dividend yields of more than 1.7%, you can plan out your investment portfolio in such a way tht you get a check sent to your bank account every quarter, semiquarterly or even annually. All that said, however, I’d like to point out the fact that agricultural investments are bound to be affected by a wide variety of factors, and you need more than just one post to unpack the crucial knowledge behind how this industry is like and how it is expected to be in the foreseeable future. This is why I would recommend that you take some time to go through the 4 part agriculture series recommended below. You will be presented with facts and statistics revealing the position of the agriculture industry, and how you can position yourself to profit.
Are Agriculture Stocks The Way To Go? Are There Any Other Rock-Solid Alternatives That You Can Rely On?
That will be all for my article about agriculture stock dividends. I hope you enjoyed it and that it will help you make a step into this industry knowing what exactly you are getting yourself into. Do not forget to have a look at the series recommended above, for even more clarity on the subject.
I wish you well,
Eric, Investor and Team Member of Gold Retired!