Why the dividend investor may take a look at NYSE:ADM.

Last update: May 9, 2024

Discover ARCHER-DANIELS-MIDLAND CO (NYSE:ADM)—a stock that our stock screener has recognized as a solid dividend pick with strong fundamentals. NYSE:ADM showcases decent financial health and profitability while providing a sustainable dividend. We'll explore the specifics further.

How We Gauge Dividend for NYSE:ADM

To gauge a stock's dividend quality, ChartMill utilizes a Dividend Rating ranging from 0 to 10. This comprehensive assessment considers various dividend aspects, including yield, history, growth, and sustainability. NYSE:ADM has achieved a 7 out of 10:

Compared to an average industry Dividend Yield of 3.51, ADM pays a better dividend. On top of this ADM pays more dividend than 80.43% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, ADM pays a bit more dividend than the S&P500 average.
The dividend of ADM is nicely growing with an annual growth rate of 6.30%!
ADM has paid a dividend for at least 10 years, which is a reliable track record.
ADM has not decreased their dividend for at least 10 years, which is a reliable track record.
ADM pays out 32.41% of its income as dividend. This is a sustainable payout ratio.

Deciphering NYSE:ADM's Health Rating

ChartMill employs its own Health Rating for stock assessment. This rating, ranging from 0 to 10, is calculated by examining various liquidity and solvency ratios. In the case of NYSE:ADM, the assigned 7 reflects its health status:

ADM has an Altman-Z score of 3.26. This indicates that ADM is financially healthy and has little risk of bankruptcy at the moment.
ADM's Altman-Z score of 3.26 is fine compared to the rest of the industry. ADM outperforms 76.09% of its industry peers.
The Debt to FCF ratio of ADM is 1.89, which is an excellent value as it means it would take ADM, only 1.89 years of fcf income to pay off all of its debts.
ADM has a Debt to FCF ratio of 1.89. This is amongst the best in the industry. ADM outperforms 83.70% of its industry peers.
A Debt/Equity ratio of 0.43 indicates that ADM is not too dependend on debt financing.

A Closer Look at Profitability for NYSE:ADM

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NYSE:ADM was assigned a score of 6 for profitability:

The Return On Assets of ADM (5.55%) is better than 68.48% of its industry peers.
ADM has a Return On Equity of 13.10%. This is in the better half of the industry: ADM outperforms 68.48% of its industry peers.
ADM has a better Return On Invested Capital (7.94%) than 78.26% of its industry peers.
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.
In the last couple of years the Gross Margin of ADM has grown nicely.

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

For an up to date full fundamental analysis you can check the fundamental report of ADM

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.