#7 - Archer-Daniels-Midland (NYSE:ADM)
Last on this list of consumer staples stocks you can buy and hold forever is the Archer-Daniels-Midland Company (NYSE: ADM). The company is engaged in the area of agricultural commodities. It may sound overly simplistic, but we’ll always need food; therefore, we’ll always need companies that provide companies with the raw ingredients.
ADM stock has rewarded shareholders with a gain of 73% in the last five years. And that includes last year when the stock dropped 15.6%. The simple fact that the stock has been a steady performer when dealing with a volatile sector like commodities is a testament to the company’s staying power.
And so is its dividend. Archer-Daniels-Midland is the fourth Dividend King on this list. The company has increased its dividend in each of the last 51 years. The current dividend yield is 2.40% that is in line with the S&P 500 average.
About Archer-Daniels-Midland
Archer-Daniels-Midland Company engages in the procurement, transportation, storage, processing, and merchandising of agricultural commodities, ingredients, flavors, and solutions in the United States, Switzerland, the Cayman Islands, Brazil, Mexico, Canada, the United Kingdom, and internationally. It operates in three segments: Ag Services and Oilseeds, Carbohydrate Solutions, and Nutrition.
Read More - Current Price
- $50.49
- Consensus Rating
- Reduce
- Ratings Breakdown
- 0 Buy Ratings, 14 Hold Ratings, 1 Sell Ratings.
- Consensus Price Target
- $60.62 (20.1% Upside)
One attribute that all these companies share is a reliable dividend. In many cases, that dividend is growing as well. This provides a reliable source of cash that you can use as supplemental income, or to reinvest and let compound growth do its thing.
In fact, many of these companies will be on the list of Dividend Challengers, Dividend Aristocrats or Dividend Kings. This means that they've increased their dividend for at least 10, 25, or 50 consecutive years respectively. Only companies with rock-solid balance sheets can pull off that feat. And that's another reason why they can be a part of your portfolio.
If you'd prefer not to pick your own stocks, but still want exposure to this sector, there are many exchange-traded funds (ETFs) to choose from. Consumer staples index funds will try to replicate the performance of the sector in general. But keep in mind that when it comes to a fund, you'll be taking the good with the not-so-good.
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