3 Under The Radar Dividend Stocks In Agriculture As $20B From Biden Inflation Bill Flows To Farms

Now that President Joe Biden signed the Inflation Reduction Act, the agriculture industry is anticipating roughly $20 billion in subsidies over the span of 10 years to encourage farmers and ranchers into using environmentally friendly practices to reduce carbon emissions.

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

One simple way to earn a passive income is to purchase dividend stocks benefiting from the surplus of demand in the agricultural sector, partially driven by the impact of the Russia-Ukraine war.

Scotts Miracle-Gro

The Scotts Miracle-Gro Company SMG is offering a dividend yield of 3.22% or $2.64 per share annually with quarterly payments, with a notable track record of raising its dividends over the past 13 years. Scotts Miracle-Gro is the largest provider of gardening and lawn care products in the United States and has a well-recognized portfolio of brands that include Miracle-Gro, Roundup, Ortho, Tomcat, Scotts, and as of recently cannabis-growing equipment through its Hawthorne business.

Scotts third quarter sales decreased by 26% or $1.19 billion, which was primarily driven by a decline of 63% in its Hawthorne segment, while U.S. consumer segment sales fell by 14%.

Go To: Biden Inflation Bill Isn't All Alternative Energy: $20B Goes To Farms. Here's Why

Bunge

Bunge Limited BG is offering a dividend yield of 2.48% or $2.50 per share annually utilizing quarterly payments, with a decent track record of raising its dividends over the past two years. Bunge Limited is a global agribusiness and food company with operations along the farm-to-consumer food chain, with its agribusiness segment generating roughly two thirds of profits and includes the largest oilseed processing capacity globally.

Bunge is forecasting full-year 2022 adjusted EPS of at least $12 per share, as its agribusiness is expected to be slightly higher than the company's previous outlook, but will remain down from last year due to a lower than expected performance in merchandising.

Archer-Daniels Midland

Archer-Daniels Midland Company ADM is offering a dividend yield of 1.83% or $1.60 per share annually, making quarterly payments, with an amazing track record of raising its dividends over the past 49 years. Archer-Daniels Midland is a premier global human and animal nutrition company and a major processor of oilseeds, corn, wheat, corn-based sweeteners, starches, and ethanol while operating an extensive network of logistical assets to store and transport crops around the globe.

“Looking forward, we expect the combination of our strategic actions and continued good demand for our products to propel very strong earnings in the second half of 2022, with strong cash flows enabling us to accelerate approximately $1 billion in share repurchases into the back half of the year”, said Chairman and CEO Juan Luciano.

Photo: Courtesy of Gage Skidmore on flickr