A 5-Star Dividend Stock to Buy With a 3.7% Yield [Video]

Inventory destocking across the globe has crippled the results of crop chemical producer FMC FMC; the shares are down more than 50% over the past 12 months. Yet we’re bullish on this undervalued stock for the long term. We expect destocking to end in 2024 and think that the narrow-moat company’s strong research and development pipeline will more than offset generic competition as its diamide molecules go off patent. FMC stock looks deeply undervalued, trading at half of what we think it’s worth. This dividend stock is on our analysts’ list of top 33 undervalued stocks this quarter; it’s also one of Morningstar chief US market strategist Dave Sekera’s 5 Dirt-Cheap Stocks to Buy in April.

FMC is a pure-play crop chemical producer and one of the five largest patented crop protection companies in the world. Its largest products—the diamides, which generated 39% of sales in 2023—are set to see patents expire and face increased competition from generic products …