Wednesday, January 05, 2011

High Yield Ethanol Stocks

A company called Qteros, which is backed by George Soros, has developed a process to use microbes to create enzymes that more efficiently changes plant waste to ethanol. The company has just entered into a joint venture with India-based Praj Industries. Qteros is privately held, but there are plenty of other companies involved in ethanol production and products which are publicly traded, over 15 of which pay dividends according to Here are a few examples.

Archer Daniels Midland (ADM) has a corn processing division which produces ethanol from corn. The stock has a price to earnings ratio of 10.3, a forward P/E of 9.3 and a yield of 2%. Although revenues were up 12.6% for the latest quarter, earnings were down 30.4%.

The Andersons (ANDE), an Ohio based company, is involved in the management of ethanol production facilities and grain and ethanol trading. The stock has a P/E of 12.8, forward P/E of 11.3 and a yield of 1.2%. Earnings for the latest quarter were up 11.5%.

Bunge Ltd. (BG) is a White Plains, New York company founded in 1818 that produces ethanol from sugarcane. The stock has a P/E of 4.9, a forward P/E of 12.3 and a yield of 1.4%. Earnings for the latest quarter were down 8.6%.

A free list of stocks related to ethanol in some way, in an Excel format, which can be updated and sorted, can be found at

Disclosure: Author did not own any of the above at the time the article was written.


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