The agriculture sector is a huge opportunity, and if you're looking to grow your capital by investing in just-in-demand, innovative industries, these select U.S. agriculture stocks and exchange-traded funds (ETFs) may help you capitalize on this global trend.
1. $Corteva, Inc.(CTVA)$
CTVA is a pure-play agriculture stock with a $39 billion market cap. The company leads the global market in seeds and crop protection products. Its seed division uses cutting-edge biotech to develop seeds that resist harsh weather, diseases, and pests while improving water efficiency. It also offers digital tools to help farmers make better decisions.
With optimistic ratings from Morgan Stanley, Morningstar, and CFRA Research, CTVA has a forward dividend of $0.68 per share, yielding 1.2%.
2. $Archer-Daniels Midland(ADM)$
ADM, with a $27 billion market cap, operates in agriculture processing, plant-based nutrition, and commodity trading. Its business spans the entire agricultural chain, from growing and transporting food to processing and selling it. ADM is a dividend aristocrat, raising payouts for 52 years straight. The forward annual dividend is $2 per share, yielding 3.5%.
3. $Nutrien Ltd.(NTR)$
Nutrien is a $24 billion giant in the fertilizer industry, specializing in potash, nitrogen, and phosphate. The company is expected to generate $25.7 billion in revenue in 2024, growing to $26.5 billion in 2025. Analysts project earnings per share to rise from $3.76 in 2024 to $3.95 in 2025. Its current dividend yield is 4.4%.
4. $iShares MSCI Agriculture Producers ETF(VEGI)$
VEGI is a small agriculture ETF with $103 million in assets, tracking the MSCI ACWI Select Agriculture Producers Index. Its largest holding, Deere & Co. (DE), represents about 23% of the portfolio. VEGI offers a 2.4% dividend yield with an expense ratio of 0.39%.
5. $Invesco DB Agriculture Fund(DBA)$
DBA, managed by Invesco, tracks a diversified agricultural products index, DBIQ Diversified Agriculture Index. With $751 million in assets and an expense ratio of 0.85%, DBA is volatile but offers strong growth potential. The forward dividend yield is 3.7%.
6. $Zoetis(ZTS)$
Zoetis, a leader in animal health, has a market cap of $86 billion. Its products include medicines, diagnostic equipment, and health monitoring for animals, serving vets, farmers, and pet owners. Zoetis is expected to post $9.2 billion in revenue for 2024, increasing to $9.8 billion in 2025. The dividend yield is 0.9%.
7. $Tractor Supply(TSCO)$
TSCO, with a $32 billion market cap, runs over 2,300 rural-focused retail stores, selling a variety of agriculture-related goods. Revenue for 2024 is projected at $14.9 billion, growing to $15.7 billion in 2025, with earnings expected to increase by 9%. The current dividend yield is 1.5%.
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