Count on these U.S. food stocks for income

Article Excerpt

These two food producers are doing a good job passing along higher ingredient costs to their customers. That’s letting them raise your dividends. However, Archer Daniels is in a stronger position to profit from rising food ingredient prices. ARCHER DANIELS MIDLAND CO. $80 is a buy. The stock (New York symbol ADM; High-Growth Payer Portfolio, Manufacturing & Industry sector; Shares outstanding: 562.7 million; Market cap: $45.0 billion; Dividend yield: 2.0%; Dividend Sustainability Rating: Above Average; www.adm.com) processes corn, wheat, soybeans, flax seed, peanuts and other crops into a variety of food ingredients. With the March 2022 payment, Archer Daniels raised its quarterly dividend by 8.1%. The new annual rate of $1.60 a share yields 2.0%. The company has paid dividends for 90 consecutive years. The company likes to acquire smaller firms in fast-growing niche markets. For example, it recently paid an undisclosed sum for Flavor Infusion International, S.A. Based in Panama, this firm supplies sweeteners and other ingredients to food and beverage makers in Latin America and…