Friday, December 16, 2011

5 Agriculture Stocks With Dividends: CMP, CZZ, DE, MON, TNH

Increasing prices for agricultural products do prove to be a boon for farmers, who will now earn large profits for each piece of grain and drop of milk produced. While it is unlikely for the average person to suddenly switch careers to become farmers in order to get a piece of the action, but as investors we also ride this wave by entering positions in agricultural related companies as a picks and shovels play.

The rationale is that farmers will need the best seeds, fertilizers, animal feed and other agricultural inputs in hopes of producing the largest yields possible. Therefore, the company's that are selling products to the farmers should be in for a decent payday as well. However, there is a curious conundrum for many income-oriented investors when venturing into the agriculture sector. In most cases, it can be difficult to find a cost-effective way to increase exposure to agriculture stocks while also obtaining a satisfactory income stream through dividends since many companies reinvest rather than giving money back to shareholders. Although an investor should always hold a diversified portfolio to minimize company-specific risk, a selection of these stocks could offer a bit of the best of both worlds.


Agricultural Stocks To Know

Company

Market Capitalization

Dividend Yield

Monsanto Co.(NYSE:MON)

36.63B

1.80%

Cosan Ltd.
(NYSE:CZZ)

3.16B

2.40%

Deere & Company. (NYSE:DE)

29.94B

2.20%

Compass Minerals International(NYSE:CMP)

2.32B

2.60%

Terra Nitrogen Company(NYSE:TNH)

2.90B

9.80%
12/15/2011

Bottom Line
Food prices will likely continue to rise as our population grows and biofuel development gains popularity. As a result, the companies mentioned in the table above could be a good addition to any portfolio.

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