This is another chapter in the series of how to not wake up broke in your 80s.
If you’ve been watching the “2 Minute” for a while, I’m sure you’ve heard this before… Invest in companies that produce essential goods, are investor focused and have excellent long-term potential.
I call it a retirement perspective away from higher risk, and toward stability and reliability.
Archer Daniels Midland (NYSE: ADM).
It doesn’t get more essential than food. The world has to eat, and this world is going from 7 billion to 9 billion eaters by 2050.
To meet this ever-increasing demand for food the U.N. says we will have to double our food production in just the next 35 years. Archer Daniels produces the food ingredients, animal feed and feed ingredients, and bio fuels that will help make this possible.
Archer is one of four globally dominant players in the agribusiness with a massive network of processing plants, storage facilities, mills, port operations, and transportation networks.
It increased its dividend last month by 26% and has paid and raised its dividend every year for the last 39 years.
That says it all about investor focus.
Without reinvesting dividends, since 1999, $10,000 invested in Archer is now worth $41,000. And over the last 15 years it has paid 2.7 times as much in dividends as the S&P 500 index.
Remember, this same time period included the 2000 and 2008 sell-offs.
But most important, the next 30 years will be, based on all projections, even bigger and richer for this food middleman.
S&P estimates future earnings growth at 10% a year and an annualized total return of over 14% a year.
Essential goods, investor focused and solid, long-term potential. It doesn’t get any more obvious than this one.
Make the necessary changes now to shift your investment focus to a retirement perspective. That’s how you don’t wake up broke in your 80s.