These agricultural stocks have room to grow

Article Excerpt

Earnings for these two firms depend on hard-to-predict weather patterns, crop prices and other factors. Even so, they both have long histories of rising profits and dividends. ARCHER DANIELS MIDLAND CO. $43 (New York symbol ADM; High-Growth Payer Portfolio, Manufacturing & Industry sector; Shares outstanding: 562.5 million; Market cap: $24.2 billion; Dividend yield: 2.9%; Dividend Sustainability Rating: Above Average; www.adm.com) processes corn, wheat, soybeans, canola, and other crops to make a variety of food ingredients such as flour, oils and sweeteners. It also makes ethanol from corn. The company has paid dividends without interruption for the past 85 years. It last raised its quarterly dividend by 6.7% with the March 2017 payment. Investors now receive $0.32 a share, up from $0.30. The new annual rate of $1.28 yields 3.0%. In the first half of 2017, Archer Daniels completed three acquisitions for a total of $180 million. Those include buying Crosswind Industries, Inc., a Kansas private-label manufacturer of pet treats and foods. The deal…