Investors can choose among companies providing agricultural products and services such as fertilizers, pesticides, seeds, processing, and livestock. As producers of basic foods, many agricultural stocks are considered consumer staples, meaning that demand for their products is not affected by the broader economy. Due to supply chain problems, increasing energy costs, and rising global demand, food prices continue to soar. Moreover, economists suggest that food prices will remain elevated throughout 2022, further fueling inflation. In January, food inflation in the U.S. hit 6.7%, the highest number we have seen since February 1990.
- Over the past five years, the company’s average gross margin was 32.1%.
- CF Industries Holdings, Inc. manufactures and sells hydrogen and nitrogen products for energy, fertilizer, emissions abatement, and other industrial activities worldwide.
- Analysts covered by TipRanks have an average 51% higher price target at $137.71.
- As a result, the company reported record adjusted EBITDA of $7.1 billion in 2021 and $12.1 billion in 2022.
- As producers of basic foods, many agricultural stocks are considered consumer staples, meaning that demand for their products is not affected by the broader economy.
There’s a high chance you caught a glimpse of the ‘CAT’ logo if you’ve ever passed by almost any construction site in the world. Founded as a utility and telecommunications infrastructure manufacturing company in Japan, NEC Corporation has grown since its founding in 1898 to become a global leader in nearly every high-tech industry. The publicly traded multinational company recently invested in CropX, an Israeli company that develops data management tools for farmers. Annualized that works out to $3.28 billion, or 3.52% of its total market value. In other words, its total shareholder yield, including dividend yield, is over 6.34% on a combined basis. And with its 30-cent dividend per share, well-covered by earnings, the stock has a dividend yield of 2.8%.
In February 2021, Bayer set aside $2 billion to cover any further claims against its Roundup weed killer, which has been tied to various cancers. Corteva could also face litigation from its toxic pesticide chlorpyrifos, which the U.S. Environmental Protection Agency banned in 2021, and Corteva pledged to stop using in 2020. A class-action lawsuit in California was filed against the company over the pesticide’s links to brain damage in children. In 2022, revenue jumped 37% to $37.9 billion while net income soared 142% to $7.7 billion, showing its ability to convert that additional revenue into profits. Corteva Agriscience was the product of a spin-off of DowDuPont’s agriculture division when it broke up into three companies.
Top Agriculture Stocks for Q2 2023
They also sell equipment for homeowners, such as lawnmowers and snow blowers. They sell equipment through two segments which are Agriculture & Turf, as well as Construction & Forestry. In addition, they also sell products for animal feed manufacturers, livestock producers, wheat & corn millers, and more. They are involved in the agricultural commodity business, in particular oilseeds. This company makes and sells lawn and garden products in the United States and other regions. They also distribute nutrient products, seeds, crop protection products, and more through around 2,000 retail locations in 7 countries.
ScottsMiracle-Gro offers exposure to individual consumers such as gardeners and homeowners in need of lawn care products, as well as farmers. The stock did well during the early stages of the COVID-19 pandemic as stay-at-home orders and a general shift to more time spent outdoors sparked an interest in lawn and garden care. However, revenue declined in recent quarters as the economy has reopened, although comparisons should get easier over the rest of 2023. However, it struggled to convert that increased revenue into profits. Adjusted EBITDA was up just 7%, a sign that the company is getting pinched by higher commodity prices.
Our last stock for today is Springdale, Arizona-based Tyson Foods, which is the largest producer of processed chicken and beef in the U.S. It is also well-known for its processed pork and protein-based products. Marysville, Ohio-based Scotts Miracle-Gro is the largest manufacturer of gardening and lawn care products stateside. In addition, Hawthorne Gardening is its wholly-owned subsidiary offering cannabis-growing equipment.
The infrastructure segment helps with road and bridge repairs and contributed the other 14%. Revenues were up by 1.8%, from $23.6million in the first quarter of 2022 to $24.1 million. Net income increased from $1,054 million to $1,170 million, or a 11% growth for the quarter compared to the first quarter of 2022. The stocks are ranked according to expected returns over the next five years, in order of lowest to highest.
Tyson Foods is a global food company focused primarily on producing meat products. This company owns high-quality North American farmland and offers loans to farmers secured by farm real estate. The standardized performance presented herein has been calculated by MoneyMade based on data obtained from the third-party platform hosting the investment and is subject to change. No representation or warranty is made as to the reasonableness of the methodology used to calculate such performance. Changes in the methodology used may have a material impact on the returns presented.
Agriculture Stocks: Deere (DE)
If history is any indication, the company will be sailing toward all-time highs again in no time flat. Notable indices like the S&P 500, the Dow Jones Industrial Average, and the Nasdaq composite have experienced significant downturns. Beyond lawn care and plant food, they sell indoor grow light systems and commercial products for more extensive growing operations. FMC Corporation is a worldwide company with operations in 50 countries. In 2022, 32% of company revenue came from South America, followed by Asia and the South Pacific with 25% of revenue. Gladstone Land Partners is a publicly traded REIT or real estate investment trust.
Warren Buffett never mentions this but he is one of the first hedge fund managers who unlocked the secrets of successful stock market investing. He launched his hedge fund in 1956 with $105,100 in seed capital. Back then they weren’t called hedge funds, they were called “partnerships”. Titan International—the parent company of Titan and Goodyear—is one of the largest manufacturers of tractor tires and undercarriages for industrial applications, including construction, forestry, and agriculture. While Titan may be the least techy stock thus far, the company does have a strong horizontal position across all vehicle manufacturing segments. This buyback yield of 2.28% plus its 1% dividend yield means it has a 3.28% total shareholder yield.
Vertical farming also seems to be a good fit here since the amounts of water and land needed are much lower than in conventional food production. Although quarter-to-quarter performance in the agriculture industry is volatile, Tyson should benefit from economies of scale and its strong position in higher-margin prepared foods over the long term. Agribusiness is big business and touches on a wide array of industries. The scale required for operations has led to market power being concentrated in a handful of titans.
- At the time, Luciano exercised options between $33.18 and $40.65 on Sep. 9, netting an extra $2 million on his stock options because the ADM share price had fallen by 12% since.
- However, net earnings declined to $665 million, or $1.76 per diluted share, down from $828 million, or $2.17 per diluted share, a year ago.
- They also sell equipment for homeowners, such as lawnmowers and snow blowers.
- With gas prices rising to well over $4 per gallon, the company is adding plenty of free cash flow to its balance sheet.
CF Industries is listed on the NYSE, has a trailing 12-month revenue of around USD$8.7 billion and employs 2,700 staff. FMC Corporation stock opened the day at $73.49 hydrogen penny stocks after a previous close of $73.87. FMC Corporation is listed on the NYSE, has a trailing 12-month revenue of around USD5.4 billion and employs 6,600 staff.
Its products are used by farmers to ensure bugs, weeds and fungi do not negatively impact their harvest. Headquartered in Philadelphia, Pennsylvania, the company has a rich history dating back to 1883 when inventor John Bean set out to build a better insecticide spray pump. Over the decades, through acquisitions, FMC became a disparate collection of chemical companies. FMC has transformed itself to solely focus on crop chemicals, having acquired DuPont’s crop chemicals portfolio in 2017, and completed the separation of its lithium business in 2019.
The 7 Best Agriculture Stocks to Buy Now
The firm is divided into two major segments (ag and construction), and while shutdowns have impacted the latter, its Ag & Turf business has impressively weathered the pandemic. Finder.com is an independent comparison platform and information service that aims to provide you with the tools you need to make better decisions. While we are independent, the offers that appear on this site are from companies from which finder.com receives compensation. We may receive compensation from our partners for placement of their products or services. We may also receive compensation if you click on certain links posted on our site. While compensation arrangements may affect the order, position or placement of product information, it doesn’t influence our assessment of those products.
These companies — many with healthy profits, cash flows, and dividends — offer excellent opportunities for investors. InvestorPlace readers might already know that average prices for Tyson’s meat products have soared by double digits. Meanwhile management anticipates generating $51 billion in sales in 2022, representing roughly an 8% YOY growth. Canada-based Nutrien is the largest potash producer and the third-largest nitrogen producer globally.
In addition to formal higher education in the field, she has also completed all 3 levels of the Chartered Market Technician (CMT) examination. Her passion is for options trading based on technical analysis of fundamentally strong companies. She especially enjoys setting up weekly covered calls for income generation. It has four million tons of available potash capacity on top of its current 14 million tons annual capacity. Management announced on Feb. 1 that the company has the potential to increase potash output by 29%. Net earnings skyrocketed to $1.2 billion, or $2.11 per diluted share, up from $316 million, or 55 cents per diluted share, a year ago.
MOS stock also throws in a 1% dividend for investors, and the shares are trading at a ridiculously low forward price-to-earnings ratio of 3.9. At the same time, Pfizer also is focusing on rewarding shareholders through dividend growth and share buybacks. The company paid out $4.6 billion to shareholders in the first half of the year. So, you can count on generating some passive income if you invest in this pharma giant. The company has a broad portfolio of medicines and vaccines, including other blockbusters.
Below, we look at the top agriculture dividend stocks in the Russell 1000 by forward dividend yield. Companies with payout ratios that are either negative or in excess of 100% were excluded, because the dividends of such companies are likely not sustainable. A payout ratio that exceeds 100% or is negative (meaning net income is negative) indicates the company may be borrowing to pay dividends. In these two cases, the dividends are at a relatively greater risk of being cut. FMC Corporation, an agricultural sciences company, provides crop protection, plant health, and professional pest and turf management products. The company markets its products through its own sales organization and through alliance partners, independent distributors, and sales representatives.
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Information on this page is for educational purposes only and not a recommendation to invest with any one company, trade specific stocks or fund specific investments. Sign up with an online broker or platform to invest in one or more of these agriculture stocks. Beyond Meat, Inc. develops, manufactures, markets, and sells plant-based meat products in the United States and internationally. The company sells a range of plant-based meat products across the platforms of beef, pork, and poultry. If you’re an income investor, it has an above-average yield of 2.7%, has grown the annual dividend for 10 consecutive years, and averaged a 17.2% compound annual growth rate over the past five years. While it will take years to assess the success of these projects, you can invest in these seven agriculture stocks today.
The company is a leader in the vaccine and treatment market, and those products together brought in more than $55 billion in revenue last year. Investors looking for strong returns can consider investing in growth stocks. In this article, we have highlighted five such stocks that have the potential to perform better than the broader market. The stocks above are some of the best to stand behind as the declines in the market continue. Considering the state of the market, every one of them is a large-cap stock, and most follow a more reserved investment strategy.
Best Farmland and Agriculture Stocks To Buy Heading Into 2023
«If they [Russia] pull supply, natural gas prices go up … it means fertilizer prices go up, and we have a restart to the inflation regardless of what the central banks are doing on interest rates.» Water is a crucial component in agriculture, but it is also a limited resource, and global water consumption is expected to significantly grow over the next generation. Consequently, investors should keep an eye on water treatment and desalination stocks such as Xylem (XYL -0.07%) and Consolidated Water (CWCO 0.13%), which offer exposure to water sustainability. Precision BioSciences (DTIL 2.28%) is developing a novel gene-editing technology platform focused on human health, but it also owns a subsidiary dedicated to agricultural applications.
The information contained herein regarding available investments is obtained from third party sources. On the date of publication, Mark Hake did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines. Moreover, in the last 12 months ending March 31, The Toro Company has bought back $272 million of its shares. You have access to our expertly curated collection of free investing reports, including 5 Best Stocks to Buy this Month, How to Find Undervalued Stocks, How Options Work, and more.
Tractor Supply reported its financial results for its first quarter on April 27th, 2023. Tractor Supply Company’s net sales for Q increased by 9.1% to $3.3 billion, driven by positive contributions https://bigbostrade.com/ from Orscheln Farm and Home, new store openings, and comparable store sales growth. Gross profit increased by 10.7% to $1.17 billion, and gross margin increased to 35.5%.
Invesco DB Agriculture Fund is one of the best ways to gain exposure to agricultural futures without taking on all the implied risk. With a relatively low expense ratio and excellent performance over the past two years, DBA seems like a good investment as its upward trend is projected to continue into the future. One example of a major technology developed by MSD Animal Health is a sound collection device that uses artificial intelligence technology to detect Bovine Respiratory Disease in cows called Whisper On Arrival. MSD Animal Health was named best animal health company in North America by market intelligence firm IHS Markit, so gaining exposure to that division through Merck shares could make it a good investment.