Agricultural chemicals companies that stand to benefit from rising food prices: American Vanguard Corporation, CF Industries Holdings, CVR Partners, and FMC Corporation.
Inflation is on everyone’s lips these days. Last week, the prices of goods and services in the United States rose to 7.9% YoY – the highest level in more than four decades.
Later this week, on Wednesday, the Federal Reserve of the United States is expected to raise the interest rate for the first time since the COVID-19 pandemic started. One of the reasons is higher inflation, as the Fed’s mandate includes price stability.
Food prices have gone through the roof as well.
So what are the best agricultural chemicals stocks to buy, considering rising food prices? Here are four stocks to look at: American Vanguard Corporation, CF Industries Holdings, CVR Partners, and FMC Corporation.
American Vanguard Corporation
American Vanguard Corporation (NYSE:AVD) is an American company from Newport Beach, California. It is a key player in the fertilizers and agricultural chemicals industry, doing business worldwide.
It operates with a gross profit margin for the past twelve months of 38.04%, higher than the sector median by 25.24%. Its stock price is up +7.34% YTD, and it pays a dividend.
CF Industries Holdings
CF Industries Holdings (NYSE:CF) is another key player in the fertilizers and agricultural chemicals industry. With the prices of fertilizers rising to new record highs, bringing more food inflation, the stock price advanced too – it is up +88.78% in the past twelve months.
On top of that, CF Industries Holdings pays a quarterly dividend and the payout ratio is 19.81%.
CVR Partners
CVR Partners (NYSE:UAN) sells ammonia products to agricultural customers, among others. Founded in 2007, it is based in Sugar Land, Texas.
Its stock rose by +187.36% in the past twelve months and at the current level the company is valued at $1.10 billion.
FMC Corporation
FMC Corporation (NYSE:FMC) is based in Philadelphia and was founded in 1883. It sells crop protection chemicals, and it pays a quarterly dividend. The forward dividend yield is 1.72%, and the payout ratio is 28.43%.
Its stock price rose by +11.91% YTD, and in February, it declared a $0.53 dividend.
