Industry Experts on Opportunities in Today s Biggest Commodities etftrends.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from etftrends.com Daily Mail and Mail on Sunday newspapers.
Dividend yield: 2.21%
Chicago, Illinois-based Archer-Daniels-Midland is a major processor of oilseeds, corn, wheat and other agricultural commodities. Its end products include vegetable oil and meal, corn sweeteners, flour, feed ingredients, ethanol and natural flavors.
The company announced Q1 results at the end of April. Consolidated revenues were up by 26.2% year-over-year (YoY) to $18.89 billion. ADM experienced robust growth in all of the segments, other than South American ag service and oilseeds operations.
Bottom line growth was more impressive with 76.2% YoY. ADM’s net profit, which was $391 million in Q1 a year ago, rose to $689 million, or $783 million after adjustments. Similarly, diluted earnings per share (EPS) jumped from 69 cents last year to $1.22 (or $1.39 after adjustments) this year. Additionally, cash and equivalents totaled $5.852 billion.
This Commodities ETF May Hold Important Equity Market Clues etftrends.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from etftrends.com Daily Mail and Mail on Sunday newspapers.
Commodity Prices on an Unstoppable Rally: ETFs to Benefit Zacks.com 3 hrs ago
After 10 years of underperformance, commodities are on an unstoppable rally this year thanks to recovering global economic growth from the pandemic lows, reopening economies, reflation trade and massive stimulus flows. The central banks across the globe have injected trillions of dollars to stave off the pandemic-ravaged economy.
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A weaker greenback added to the strength as it makes dollar-denominated assets attractive for foreign investors, raising the appeal for commodities. This is because commodities are often viewed as a hedge against inflation and a weaker dollar (read: 3 ETFs to Protect Against Inflation).
The VanEck Vectors
® Real Asset Allocation ETF (“RAAX”) returned +2.29% versus -2.15% for the Bloomberg Commodity Index. March was another strong month for RAAX. The largest contributors to performance, from largest to smallest, were income assets with a return of +5.66%, financial assets with a return of +2.72% and resource assets, with a return of +0.48%.
President Joe Biden recently announced an ambitious $2.3 trillion spending plan to upgrade the nation’s bridges, roads, schools and more. This level of investment is going to require a lot of natural resources to complete. This combined with the unprecedented monetary support from the U.S. Federal Reserve (Fed) and the other aggressive fiscal support programs, is creating strong inflationary pressures. In our view, this leads to a very nice outlook for real assets and, more specifically, RAAX.