In a World of Scarce Resources, Consider these Stocks: Monsanto Company (MON) and More

American States Water Company is a small-cap stock with only a $1 billion valuation.  Clearly, the company has room to grow, and considering it provides an absolute essential product to society, would be interesting to research for both growth and income investors.

The Bottom Line

As the number of people on this planet keeps rising, its available resources remain constant.  There is only so much water and land on this planet available for food production.  Developing economies, such as the BRIC nations (Brazil, Russia, India, and China) have experienced high economic growth and consequently high demand for commodities such as wheat, corn, and water.

Value investors may prefer Archer Daniels Midland and American States Water Company because of their market-beating dividend yields and reasonable valuations.  More growth-oriented investors probably would prefer Monsanto and Deere; their yields are slightly lower, but they offer a compelling combination of high dividend growth and the opportunity to profit handsomely from the global economic growth story.  No matter an investor’s preference, each of the three companies above has an extremely successful business model and will continue to succeed in a world of scarce resources.

The article In a World of Scarce Resources, Consider these Stocks originally appeared on Fool.com and is written by Robert Ciura.

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