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Exploring NYSE:ADM's dividend characteristics.

By Mill Chart

Last update: Jan 25, 2024

Our stock screener has singled out ARCHER-DANIELS-MIDLAND CO (NYSE:ADM) as a promising choice for dividend investors. NYSE:ADM not only scores well in profitability, solvency, and liquidity but also offers a decent dividend. We'll explore this further.

Dividend Assessment of NYSE:ADM

ChartMill assigns a Dividend Rating to each stock, ranging from 0 to 10. This rating is calculated by analyzing various dividend elements, such as yield, historical performance, dividend growth, and sustainability. NYSE:ADM has been awarded a 7 for its dividend quality:

  • Compared to an average industry Dividend Yield of 3.51, ADM pays a better dividend. On top of this ADM pays more dividend than 83.52% of the companies listed in the same industry.
  • Compared to an average S&P500 Dividend Yield of 2.50, ADM pays a bit more dividend than the S&P500 average.
  • ADM has been paying a dividend for at least 10 years, so it has a reliable track record.
  • ADM has not decreased their dividend for at least 10 years, which is a reliable track record.
  • ADM pays out 24.38% of its income as dividend. This is a sustainable payout ratio.

Deciphering NYSE:ADM's Health Rating

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NYSE:ADM, the assigned 6 for health provides valuable insights:

  • An Altman-Z score of 3.47 indicates that ADM is not in any danger for bankruptcy at the moment.
  • ADM's Altman-Z score of 3.47 is fine compared to the rest of the industry. ADM outperforms 76.92% of its industry peers.
  • ADM has a Debt/Equity ratio of 0.33. This is a healthy value indicating a solid balance between debt and equity.
  • ADM has a better Debt to Equity ratio (0.33) than 60.44% of its industry peers.
  • With a decent Quick ratio value of 1.07, ADM is doing good in the industry, outperforming 64.84% of the companies in the same industry.

A Closer Look at Profitability for NYSE:ADM

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NYSE:ADM has earned a 6 out of 10:

  • With a decent Return On Assets value of 7.15%, ADM is doing good in the industry, outperforming 76.92% of the companies in the same industry.
  • The Return On Equity of ADM (15.61%) is better than 75.82% of its industry peers.
  • With an excellent Return On Invested Capital value of 9.17%, ADM belongs to the best of the industry, outperforming 84.62% of the companies in the same industry.
  • The last Return On Invested Capital (9.17%) for ADM is above the 3 year average (7.06%), which is a sign of increasing profitability.
  • In the last couple of years the Profit Margin of ADM has grown nicely.
  • In the last couple of years the Operating Margin of ADM has grown nicely.
  • ADM's Gross Margin has improved in the last couple of years.

Every day, new Best Dividend stocks can be found on ChartMill in our Best Dividend screener.

Our latest full fundamental report of ADM contains the most current fundamental analsysis.

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.

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