3 Under the Radar Dividend Stocks in Agriculture as $20 Billion of Biden’s Inflation Bill Flows to Farms

Now that the president Joe Biden signed the Cut Inflation Act, the agriculture industry plans about $20 billion in subsidies over 10 years to encourage farmers and ranchers to use environmentally friendly practices to reduce emissions of carbon.

Although inflation remained unchanged for the month of July at 8.5% over the past twelve months, the index for food at home increased by 1.1% in July, which caused Americans to spend more for less when shopping for their family.

A simple way to earn passive income is to buy dividend-paying stocks benefiting from the excess demand in the agricultural sector, partly driven by the impact of the Russian-Ukrainian war.

Scotts Miracle-Gro

The Scotts Miracle-Gro Company machine gun offers a dividend yield of 3.22% or $2.64 per share per year with quarterly payouts, with a remarkable record of increasing its dividends over the past 13 years. Scotts Miracle-Gro is the largest supplier of gardening and lawn care products in the United States and has a well-known brand portfolio that includes Miracle-Gro, Roundup, Ortho, Tomcat, Scotts and, most recently, cannabis cultivation equipment through his company Hawthorne.

Scotts’ third-quarter sales fell 26% or $1.19 billion, primarily due to a 63% drop in its Hawthorne segment, while U.S. consumer segment sales fell by 14%.

Jump to: Biden Inflation Bill Isn’t All Alternative Energy: $20 Billion Goes to Farms. here’s why

Bunge

Bunge Limited BG offers a dividend yield of 2.48% or $2.50 per share per year using quarterly payouts, with a decent track record of increasing its dividends over the past two years. Bunge Limited is a global food and agribusiness company operating across the farm-to-consumer food chain, with its agribusiness segment generating approximately two-thirds of profits and comprising the largest oilseed processing capacity in the world. world.

Bunge expects full-year 2022 adjusted EPS of at least $12 per share as its agribusiness is expected to be slightly above the company’s previous outlook but will remain down from last year due to a performance below merchandising expectations.

Archer Daniels Midland

Archer-Daniels Midland Company ADM offers a dividend yield of 1.83% or $1.60 per share per year, paying quarterly, with an incredible track record of increasing its dividends over the past 49 years. Archer-Daniels Midland is one of the world’s leading human and animal nutrition companies and a major processor of oilseeds, corn, wheat, corn-based sweeteners, starches and ethanol, while operating an extensive network of logistics assets to store and transport crops around the world.

“Looking ahead, we expect the combination of our strategic actions and continued good demand for our products to propel very strong earnings into the second half of 2022, with strong cash flow enabling us to accelerate to approximately $1 billion. of share buybacks during the second half of the year,” said the Chairman and Chief Executive Officer Juan Luciano.

Photo: Courtesy of Gage Skidmore on flickr

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