Tap steady dividends with these agriculturals

Article Excerpt

Some projections estimate the worldwide demand for food will double by 2050. That should spur long-term demand for products and services from companies that serve the agriculture industry, including Archer Daniels Midland and Monsanto. ARCHER DANIELS MIDLAND CO. $43 (New York symbol ADM; High-Growth Payer Portfolio, Manufacturing & Industry sector; Shares outstanding: 559.3 million; Market cap: $24.0 billion; Dividend yield: 3.0%; 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% in March 2017, to $0.32 a share from $0.30. The new annual rate of $1.28 yields 3.0%. In the first nine months of 2017, Archer Daniels completed three acquisitions for a total of $187 million. Those included Crosswind Industries, Inc., a Kansas private-label manufacturer of pet treats and…