That’s why they’re going to keep one foot firmly planted in their existing profit center — botanicals — as the vertical farming revolution unfolds. As illustrated on the slide, the total global market potential for cannabis will grow to $62.1 billion by 2026. And with hundreds of acres of ultra-efficient indoor THC operations, Village Farms is poised to share in that growth and rebound from its slumped share price of just $3.17. Yep, cannabis growers love GrowGeneration, and their patronage has enabled the company to secure a vast early lead in vertical farming supplies for next-generation food production. And considering the company’s aggressive expansion moves and heavy investment into its own supply chain, it appears that GrowGeneration is ready to seize the initiative.
ETFs and funds that prioritize investments based on environmental, social and governance responsibility. Build conviction from in-depth coverage of the best dividend stocks. Schedule monthly income from dividend stocks with a monthly payment frequency. Investments in farmland and agriculture are often seen as a way to create a more recession-resistant portfolio.
- After careful assessment of the agriculture industry, these stocks were picked according to their fundamentals, financial reports, dividend history, analyst ratings, growth catalysts, and other metrics.
- Many of the top traders I know stay in the game by finding stocks within one sector.
- The industry with the best average Zacks Rank would be considered the top industry , which would place it in the top 1% of Zacks Ranked Industries.
- However, analysts forecast lower earnings for next year, raising its P/E multiple to 13.2x from 12.2x this year.
The Dividend Kings List is even more exclusive than the Dividend Aristocrats. It is comprised of 45 stocks with 50+ years of consecutive dividend increases. The Dividend Achievers List is comprised of ~350 stocks with 10+ years of consecutive dividend increases.
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Lauren Solberg does not own shares in any of the securities mentioned above. Political risk is inherent in Africa so careful analysis must be conducted to determine if projects are viable. Religious fundamentalism has spread with the formation of groups such as Boko Haram. As they increase their wealth, they will be demanding more meat protein, a common trend that arises as affluence increases.
The proximity to markets compares favorably with conventional produce, which is often imported from abroad or shipped from California. Bayer acquired Monsanto in 2018 to become the dominant player in the industry. DuPont and Dow Chemical merged and then split into three separate companies in 2019, with one being Corteva Agriscience.
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The company is forecast to show 8.7% earnings growth next year. This buyback yield of 2.28% plus its 1% dividend yield means it has a 3.28% total shareholder yield. Analysts covered by TipRanks have an average 51% higher price target at $137.71.
No company exemplifies these competitive advantages more than Scotts Miracle-Gro. Hyster Yale Materials Handling’s dividend payout ratio of -9.7% indicates that its high dividend yield might not be sustainable for the long-term. Agco’s dividend payout ratio of 50.4% indicates that its high dividend yield is sustainable for the long-term.
Agriculture Stock #7: Ingredion Inc. (INGR)
China Green Agriculture gives investors direct exposure to China’s market. As mentioned, China’s demand for meat is climbing as more of its population moves up into the middle class. This demand and the growing population are powerful trends to profit on. Over its long history it has transitioned to more of a lawn and garden company. Today, it provides a wide range of gardening and pest control products.
- The stocks are ranked according to expected returns over the next five years, in order of lowest to highest.
- This diversification and large-scale production helped it become competition with other big names in the industry.
- Here we’ll review three farming-related companies that should provide solid returns to investors.
- Yep, cannabis growers love GrowGeneration, and their patronage has enabled the company to secure a vast early lead in vertical farming supplies for next-generation food production.
- The average P/E of this group is just 12.3x and its average yield is 1.81%.
- Examples of companies involved in agribusiness include Corteva Inc., Canada-based Nutrien Ltd., and Tractor Supply Co.
On August 3, 2022, Nutrien reported its second-quarter results for Fiscal Year 2022. The increase came mainly from the Crop nutrients segment, which saw sales increase by 49%. The Crop protection products segment saw sales increase by 12% year over year. Net earnings came in at $1,427 million for the quarter, compared to a profit of $1,097 million in 2Q21. The company has over 1,700 retail locations in North America, South America, and Australia and is one of the world’s largest manufacturers and suppliers of potash, nitrogen, and phosphate. INGR released second-quarter 2022 results on August 9th, 2022.
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Investors who buy shares of NEC may like it for being a highly diversified company that has had joint ventures with Samsung and Lenovo in the past. It continues to acquire new companies and expand into new business opportunities . In addition to being an all-around safe-bet stock, NEC is likely to continue gaining exposure to agritech businesses through future investments and acquisitions. Founded as Deere & Company in 1837, the company began by manufacturing plows, pitchforks, and other farming equipment. John Deere was made famous in the early 20th century for its state-of-the-art tractors, and it quickly became a global leader in the agriculture industry. John Deere is one of the most innovative agricultural companies because of its responsiveness and adaptability to the needs of farmers.
- Industry Earnings Trends highlight the number of companies in that industry that have reported, and shows whether they’ve Beat, Met, or Missed their consensus estimates.
- This company gives you diversified exposure to agricultural products, packaged and bulk oils and fats and other important supporting roles of the food industry.
- I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours.
Also, Mosaic’s Board of Directors approved a new $2.0 billion share repurchase authorization. Nutrien Ltd. is the largest producer of potash and the third largest producer of nitrogen in the world. Both are essential fertilizers international council of air shows for the world’s major crops and have been in high demand among U.S. growers this year. Mosaic has reported higher fertilizer demand from farmers in Brazil and sees a big opportunity for capacity additions in that country.
Farmland Partners (FPI)
Q revenue of $2.87B beat by $246.02M, an increase of 173.66% year-over-year, so the company is optimistic about its long-term free cash flow, which is excellent, up 238.28% compared to its sector. We have three key fertilizer stocks for an inflationary environment that are Strong Buys based on our quant ratings, their fundamentals, attractive valuation levels, and solid earnings growth. What top agriculture stocks have you researched that are worth investing in? Here is an agriculture stocks list that features some of the biggest and best companies. 39.13% of agriculture stocks rated by analysts are a strong buy right now. On average, analysts expect agriculture stocks to rise by 39.45% over the next year.
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Of the 12 analysts covering Agco, 33.33% have issued a Strong Buy rating, 16.67% have issued a Buy, 50% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell. Terex stock has a consensus Buy recommendation vintage and antique candlesticks and candelabra according to Wall Street analysts. Of the 10 analysts covering Terex, 60% have issued a Strong Buy rating, 0% have issued a Buy, 40% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.
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. Another company focused on manufacturing agricultural auxiliaries is Caterpillar, Inc, an American 1000 gbp to pln exchange rate firm that develops industrial technology and sells farming and earthmoving equipment. 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. In August, Nutrien announced its second quarter 2022 financial results.