Picking MOO
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
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