Quarterly dividend announced
Monsanto (MON) declared a quarterly dividend on its common stock of 54 cents per share on August 4, 2015. The dividend relates to the company’s fourth quarter of its 2015 fiscal year and is payable on October 30, 2015, to shareholders of record on October 9, 2015.
The above chart shows the company’s dividend-per-share increase yearly since 2010. The dividend increase quarterly since the third quarter 2014 has been around 26%. Monsanto has a good dividend track record and has consistently declared dividends for the last five years.
The SPDR S&P 500 ETF (SPY) invests 0.26% of its portfolio in this stock and the Materials Select Sector SPDR ETF (XLB) invests 9.04%. Monsanto’s main competitor in the seeds and genomics space is Syngenta AG (SYT) and, in the agricultural productivity division, its rivals include fertilizer producer CF Industries Holdings (CF) and potash miner Potash Corporation of Saskatchewan (POT). Syngenta AG (SYT) and CF Industries Holdings (CF) offer positive year-to-date returns of 26.68% and 11.95%, respectively, compared to Monsanto (MON) with -13.80% and Potash Corporation (POT) with -23.90%. The Materials Select Sector SPDR ETF (XLB) also invests 2.49% of its portfolio in CF Industries Holdings (CF).
Pierre Courduroux, senior vice president and chief financial officer for Monsanto, stated, “The increase in quarterly dividend of the company emphasizes its continued commitment of returning value to shareowners.” He also stated that the company has increased its dividend six times since 2010.
Executives also mentioned Monsanto’s vision and strategic rationale for the Syngenta proposal to create a new company that would provide a comprehensive portfolio of integrated solutions. The main motive is to help farmers around the world address current and future agricultural, environmental, and sustainability challenges.
Monsanto, together with its subsidiaries, provides agricultural products for farmers worldwide. It’s committed to bringing a broad range of solutions to agricultural produce. The company produces seeds for fruits, vegetables, and key crops such as corn, soybeans, and cotton that help farmers have better harvests while using water and other important resources more efficiently. Monsanto works to find sustainable solutions for soil health, help farmers use data to improve farming practices, conserve natural resources, and provide crop protection products to minimize damage from pests and disease.
Through programs and partnerships, Monsanto collaborates with farmers, researchers, nonprofit organizations, universities, and other organizations to help tackle some of the world’s biggest challenges.
Let’s look at the company’s third-quarter performance, which contributed to its dividend increase.