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Picking MOO

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December 19, 2011 – Comments (5) | RELATED TICKERS: MOO

I recently read that Agrium (AGU) had quadrupled its dividend and,even though it was off a small base, a move like that made this ol' dividend Fool take note.  I did a little digging and liked what I found, but when I looked at competitors and other companies in the ag space, I couldn't decide what I liked best.  A little more digging and I found there's an ETF for that.

Market Vectors Agribusiness (MOO) is full of quality companies and has been beaten up a bit worse than the broad market this year.  The average PE is 11, a nice discount to 14 for the S&P500.  Since food isn't going out of style any time soon, I believe the recent underperformance will turn around, just don't know when.

I usually like trying to cherry pick a company or two out of an ETF rather than picking the fund, but when that's a tough call to make and the stocks depend on the industry to do well, an ETF can make sense.

In case you missed it, I'm trying my own mini-Foolanthropy and am donating a quarter to a charity for each comment to my blogs or articles this week.  Details here.

Fool on!

Russ

 

 

5 Comments – Post Your Own

#1) On December 20, 2011 at 2:58 PM, buffalonate (95.89) wrote:

MOO is a great inflation hedge for the future.  8 Billion people to feed and endless inflation of the dollar tells me this is a great place to be for the longterm. 

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#2) On December 20, 2011 at 3:48 PM, tekennedy (71.14) wrote:

Seems a good ETF.  With almost 10% of the portfolio MON I'm surprised the PE is that low

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#3) On December 20, 2011 at 7:06 PM, awallejr (82.72) wrote:

Personally I would rather cherry pick.  I like POT as a pure play and AGU as a more diverse play.

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#4) On December 20, 2011 at 7:12 PM, rd80 (98.66) wrote:

Many thanks for the comments. 

 

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#5) On December 20, 2011 at 8:09 PM, fmahnke (95.32) wrote:

here is my 25 cents worth

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