Monsanto Co.

Monsanto Co. (MON) recently declared a quarterly dividend of 24 cents per share. The company noted that the dividend is payable on January 30 to shareowners of record on January 9. The dividend translates into a yield of 1.3%, which is better than the industry average.

Company Description

Monsanto Company is a leading global provider of technology-based solutions and agricultural products that improve farm productivity and food quality.

Rewarding Shareholders with Solid Income

The company recently declared a quarterly dividend of 24 cents per share. Monsanto noted that the dividend is payable on January 30 to shareowners of record on January 9. The dividend translates into a yield of 1.3%, which is better than the industry average.

Record results in the Fourth Quarter

Monsanto announced record net sales of $2 billion for the fourth quarter of fiscal 2008, a 35% increase from last year. MON noted that key drivers for the quarter were higher sales of branded Roundup herbicides and soybean seeds and traits.

Fourth-quarter earnings did come in at loss of 3 cents, but the result was narrower than the year-prior loss of 18 cents and 67% above analyst estimates.

Higher Estimates

Analysts are projecting earnings per share of $4.59 for the year ending August 2009. Three months ago, forecasts were at $4.48 per share. The current earnings estimate represents a 26% increase from the previous year’s result.

Favorable Industry Comparisons

Monsanto sports a return on equity (ROE) of 22%, well above the industry average of 5%. Earnings per share for MON are expected to grow by 23% over the next 3 – 5 years, versus the industry average of 15%.

Read the full analyst report on MON