Global Agriculture Giant With 40+ Years of Dividend Growth Strengthens Position on Best Dividend Stocks List
Aaron Levitt Apr 17, 2019
There’s no denying it, Mother Nature can be a cruel mistress. Quickly changing weather patterns and sustained differences in precipitation and heat can have all sorts of effects on various industries. But, perhaps, no more than the agricultural sector. Yet, sometimes, investors catch a serious break in Mother Earth’s tantrums, and that’s just what’s happening with our Best Dividend Stocks List pick in the sector.
Thanks to sustained rain and cold in key growing regions, farmers are delaying plantings of corn, wheat and soybeans. These delays and record flooding have already started to push up prices for these necessary crops as traders expect one of the worst planting seasons in recent years. This should hit supplies in a big way.
See the original article on our pick here.
The news is coming right when demand in China is expected to grow by leaps and bounds. Thanks to new policies and continued protein demand in the key emerging market, global supplies for grains are nearing all-time highs. At the same time, the end of the trade war could send more of whatever corn, wheat, etc., is grown in the U.S to the overseas markets.
All of this is setting up our Best Dividend Stocks List pick to have an absolutely wonderful summer.
Our pick performs a vital function as a middle-man for the sector. As the world’s largest processor of agricultural commodities with massive irreplaceable infrastructure, our pick will directly benefit from rising prices and demand. The best part is that it’s still trading a huge discount, thanks to the overhang of the trade war.
To summarize, here are five reasons why you should own this stock:
- Huge moat of irreplaceable assets featuring over 750 different facilities and processing plants, as well as numerous rail cars and trucking fleets.
- Produced nearly $65 billion in revenues over the course of the last year.
- Smartly used M&A to beef up its infrastructure and technology to increase its offerings, reduce costs and raise margins.
- Has increased its dividend for more than 40 straight years and has more than doubled its quarterly payout since 2010.
- Healthy payout ratio of 40% and growing yield of 3.32%.
Our Best Dividend Stocks List has 20 of the highest-rated stocks by our proprietary rating system. Go Premium to find out the entire list.
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