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My supervisor tells me that a good dividend story sells newsletters. Here at Wyatt Investment Research, we like to sell newsletters because we believe we have some of the best financial research in the business. If you become a subscriber to one of our paid services, I think you'll be happy. Happy, paying subscribers let me write this free letter, so we all win.

Right now, my colleague Tyler Laundon and I are currently working on a special report on two of the best and highest paying small cap dividend stocks.

I hope to get some information about this report in front of you later this week, but in the meantime, I've found a commodity stock that satisfies my curiosity and interest in farmland - and it also happens to pay a dividend.

Before I reveal the name of this stock, I want to point out that buying a company with farmland in the mix is a great diversification play - and doubly so when it pays a dividend.

That's because when you buy this type of company, you're getting exposure to the continued profitability of its underlying farm business, but you're also buying actual farmland that the company owns - and if you've been reading this letter, you probably know that I'm extremely bullish on farmland prices.

I also happen to be bullish on the commodities that grow on farms; corn, wheat, sugar, cattle, pigs, chickens, etc.

The dividend is just a small bonus, but I know there are readers out there interested in income, so it's worth a mention - even though it's only a 2% annual yield.

The value of farmland is not something you'll find by looking at a stock chart or a PE ratio. But it's an important asset. It acts as a paperweight on the underlying value of the company, no matter what happens to its profitability.

Reader Sarah L. recently wrote in to tell me about farmland in Cass County Illinois. According to Sarah, prices are on the rise, with the acreage selling for 16% more than it was at this time last year.

That's one small example. A story on August 16 of this year in the Kansas newspaper the Wichita Eagle backs up Sarah's claim:

Farm land prices rise as demand increases. The gains came from strong demand from farm and non-farm buyers and a limited supply of land for sale, even though lower crop prices during the spring trimmed farm incomes.

The company I'm about to reveal currently has 1.2 million acres of productive farmland. That acreage is spread over 25 different farms, and produces a variety of agricultural products: corn, wheat, sorghum, soybean, sunflower, beef cattle and milk.

Buying one share of this company gives you ownership of 2.4% of an acre - or a plot of farmland about 100 feet square.

With the company's stock price currently hovering above $15, it would cost about $638 to buy enough shares to equal one acre of farmland that this company owns. I don't have to tell you that $638 is dirt cheap for one acre.

But buying $638 worth of shares gets you the farmland with the farm businesses thrown in for free. Oh, and you get the 2% dividend.

If farmland continues to rise in price, along with commodities, you get double the upside.

Enough teasing, the company is Cresud Inc. (CRESY).

It's a small-cap company with a market cap of about $750 million. I'd recommend picking up shares of this company under $17. That still gives you the farm for a reasonable price - plus the business for free.

What's the catch? The company is headquartered in Buenos Aires, Argentina, and most of its farmland is in Brazil. That's not necessarily a bad thing: Brazil is famously one of the most farm-friendly countries in the world. It's also a growth center, and is quickly becoming a bread basket to compete with the American mid-west.

I think the company's location is a plus, but as always, I suggest you do your own homework to see if this opportunity is right for you.

If you have any favorite agriculture investments, please continue to send them my way. I read every message, though I'm not always able to reply to each one.

Disclosure: No positions

Source: Farmland That Pays a Dividend