3 Agriculture Stocks Harvesting Dividends

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Agriculture stocks have performed well over the past few years due to rising agriculture commodity prices. Returns could continue to be strong, thanks to a long-term growth catalyst: the rising global population.

In fact, the United Nations states that the world will need to produce 60% more food to feed an estimated 9.3 billion people by 2050.

Investors can capitalize on this global trend by selecting top dividend-paying agriculture stocks.

Archer-Daniels-Midland (ADM)

Archer-Daniels-Midland (ADM) logo on sign at office campus

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Archer-Daniels-Midland (NYSE:ADM) is the largest publicly traded farmland product company in the U.S. The company generates annual revenue of approximately $85 billion.

As the largest public farmland product company in the country, Archer-Daniels-Midland benefits from economies of size and scale. The company has approximately 450 crop procurement locations, 320 food- and feed-processing facilities, and more than 60 innovation centers. The company also has a significant presence in international markets due to its global distribution system.

Archer-Daniels-Midland’s business model has proven to be very recession-proof as food demand often remains consistent during economic downturns. The company saw earnings per share (EPS) grow almost 29% from 2007 to 2009. More recently, Archer-Daniels-Midland weathered the worst of the Covid-19 pandemic extremely well as bottom-line results improved 29% from 2019 to 2020.

Archer-Daniels-Midland has raised its dividend for 50 years, qualifying the company as a Dividend Aristocrat and a Dividend King. It is likely that Archer-Daniels-Midland’s dividend growth streak continues as the expected payout ratio for 2022 is just 31%. Shares of the company yield 2.2%, slightly above the average yield of 1.5% for the S&P 500.

Bunge Limited (BG)

A Photo of a blue sign in an industrial campus showing the Bunge (BG) logo.

Source: JHVEPhoto/ShutterStock.com

Bunge Limited (NYSE:BG) is one of the largest agribusiness and food companies globally, with integrated

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