Archer Daniels Midland

Archer Daniels Midland is one of the world's largest agricultural processors and commodity traders, sourcing, transporting and refining crops into food ingredients, animal feed and biofuels. Its vast global logistics network gives it scale in an essential but low-margin business, and results can swing with harvests, commodity prices and trading conditions. ADM has paid and increased its dividend for over three decades, a notable record of consistency in a cyclical industry, underpinned by its entrenched position in the agricultural supply chain. The yield is moderate and the payout has proved durable through commodity cycles. The stock suits income investors seeking a defensive agricultural staple, provided they accept the earnings volatility inherent to commodity processing.