5 farming stocks for agricultural returns

Australian Agricultural Company Ltd (ASX: AAC)

Australian Agricultural Company, or AAC, is a provider of beef and other products. In response to the live cattle export ban with Indonesia, AAC’s earnings came under pressure and the company made a decision to build a processing facility near Darwin which is due for completion in the second half of 2014. After posting a loss in the first half of FY14, investors will be hoping for a turnaround story in the second half. Morningstar’s analysts’ consensus expects the company to return to profitability (in a big way) in the short term.

Tassal Group Limited  (ASX: TGR)

Salmon farmer and producer Tassal Group is a first class Australian aquacultural company. After a strategic remodel, the company shifted its focus to growing consumption per capita here in Australia, much to the delight of investors. As consumption increases so too will its dividend. Keep this one on your watchlist.

Select Harvests Limited  (ASX: SHV)

Select Harvests was one of the biggest success stories in 2013, notching up gains of around 300%! The almond producer took advantage of its excellent crop and pushed down costs while farmers in California, the world’s number-one region for almonds, battled with drought. At $6.24, it trades on a forwards price-earnings multiple of only 10 and can be expected to pay a bigger dividend in the next 12 months.

Ridley Corporation Ltd  (ASX: RIC)

Ridley is a company who come across my screen on a regular basis. It’s Australia’s number-one provider of animal nutrition solutions. After what Chair John Spark described as a “complicated and busy year”, Ridley is returning to its “normal” and profitable self. In coming years dividends and earnings can be expected to grow thanks to both an organic and acquisitive growth model.

TFS Corporation Limited  (ASX: TFC)

TFS Corporation is last on this list but definitely not least, having climbed around 289% in the past 12 months. It is currently leading the world in sustainable Sandalwood supply. In 2014 earnings are expected to jump following first harvest and sales. This week Canaccord Genuity put a price target of $3.34 on the stock. Currently it trades on $1.67.

The top ASX pick you've never heard of...

Top Motley Fool analysts just identified their #1 ASX pick for 2014, a small-cap stock that could be poised for big gains (and offers a fat, fully franked dividend!). Discover all the details now, including the name and code, in this FREE investment report, "The Motley Fool's Top Stock for 2014."

Motley Fool Contributor Owen Raszkiewicz does not have a financial interest in any of the mentioned companies. 

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss a very important event! Chief Investment Advisor Scott Phillips and his team at Motley Fool Share Advisor are about to reveal their latest official stock recommendation. The premium “buy alert” will be unveiled to members and you can be among the first to act on the tip.

Don’t let this opportunity pass you by – this is your chance to get in early!

Simply enter your email now to find out how you can get instant access.

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our Financial Services Guide (FSG) for more information.