Du Pont and Monstanto Enter into Seed Agreement (DD, MON)

Du Pont and Monstanto Enter into Seed Agreement (DD, MON)

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Du Pont (DD) and Monsanto Company (MON) reported on Tuesday that they have entered into an agreement that will increase the number of seed products that they can sell to farmers.

This agreement will allow Du Pont to sell Genuity Roundup Ready 2 Yield soybeans as early as 2014 and Genuity Roundup Ready 2 Xtend glyphosate and dicamba tolerant soybeans as early as 2015. The company will also have access to soybean and corn traits which were licensed by MON. This will allow Du Point to expand its product offers. Monstanto will also receive access to some Du Pont disease resistance and corn defoliation patents.

Under the agreement, Du Pont will pay four fixed royalty payments to Monsanto from 2014 to 2017. The company will pay $802 million for trait technology, associated data, and soybean lines. The company will also pay royalties for Genuity Roundup Ready 2 Yield and Genuity Roundup Ready 2 Xtend on a per unit basis.

DuPont shares were mostly flat during Tuesday morning trading. The stock has declined -8% in the past year. Monsanto shares were up $2.59, or 2.61% during Tuesday morning trading. The stock has increased 26% in the past year.

The Bottom Line
Shares of Du Pont (DD) have a 3.51% yield, based on Tuesday morning’s price of $49.03.
Shares of Monsanto Company (MON) have a 1.48% yield, based on Tuesday morning’s price of $101.56.

Du Pont (DD) and Monsanto Company (MON) are not recommended at this time, holding Dividend.com DARS™ Ratings of 3.2 and 3.4 out of 5 stars respectively.

Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.

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