The dividend stocks on our list should benefit from rising agriculture and fertilizer prices
SmallCapPower | April 4, 2022: As a result of Russia’s war with Ukraine, food, energy, and fertilizer prices may rise until the conflict ends. This is because Ukraine is one of the world’s major food grain producers, as well as a major natural gas supplier, and the Black Sea region is an important hub for fertilizer production. Additionally, sanctions are driving up the cost of oil, which is a key input for fertilizers and agriculture. Today we’ve picked three dividend stocks that could stand to benefit from rising fertilizer and food costs.
*Share price data and other metrics as of April 1, 2022
Nutrien Ltd. (TSX:NTR) – $129.22
Fertilizers
Nutrien was created in 2018 as a result of the merger between PotashCorp and Agrium. Nutrien is the world’s largest fertilizer producer by capacity. Nutrien produces the three main crop nutrients–nitrogen, potash, and phosphate–although its main focus is potash, where it is the global leader in installed capacity with roughly 20% share. The Company is also the largest agricultural retailer in the United States, selling fertilizers, crop chemicals, seeds, and services directly to farm customers through both its physical stores and online platforms.
- Market Cap: $71.7B
- 7-Day Return: -1.2%
- 30-Day Return: +1.9%
- 30-Day Average Trading Volume: 2,614,247
- Dividend Yield: 1.85%
Ag Growth International Inc. (TSX:AFN) – $43.18
Agriculture
Ag Growth manufactures and distributes grain and rice handling, storage, and conditioning equipment in Canada, the United States, and internationally. The Company offers storage equipment comprising grain and bolted bins, hopper bins, smooth wall bins, temporary storage equipment, unloads and sweeps, water tanks, fuel tanks; and conditioning equipment, such as mixed flow dryers, fans and heaters, aerations, airaugers, aeration floors, vents and exhausters, stirrings, and accessories. It also provides portable handling equipment, such as portable augers, conveyors, grain vacs, post pounders, seed treaters, and accessories; and permanent handling equipment, including bucket elevators, chain and belt conveyors, enclosed belt conveyors, distributors, feed handling equipment, screw feeders and conveyors, and spouts and connections.
- Market Cap: $789.9M
- 7-Day Return: -3.0%
- 30-Day Return: +20.0%
- 30-Day Average Trading Volume: 90,111
- Dividend Yield: 1.43%
Archer-Daniels-Midland Co (NYSE:ADM) – $90.26
Agriculture
Archer-Daniels-Midland procures, transports, stores, processes, and merchandises agricultural commodities, products, and ingredients in the United States, the United Kingdom, and internationally. The Company operates through three segments: Ag Services and Oilseeds, Carbohydrate Solutions, and Nutrition. It procures, stores, cleans, and transports agricultural raw materials, such as oilseeds, corn, wheat, milo, oats, and barley. Archer-Daniels-Midland also engages in the agricultural commodity and feed product import, export, and distribution; and structured trade finance activities. In addition, it offers vegetable oils and protein meals; ingredients for the food, feed, energy, and industrial customers; crude vegetable oils, salad oils, margarine, shortening, and other food products; and partially refined oils to produce biodiesel and glycols for use in chemicals, paints, and other industrial products. The Company was founded in 1902 and is headquartered in Chicago, Illinois.
- Market Cap: $51.3M
- 7-Day Return: +4.1%
- 30-Day Return: +8.6%
- 30-Day Average Trading Volume: 4,996,481
- Dividend Yield: 1.75%
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