Exploring NYSE:ADM's dividend characteristics.

Our stock screening tool has identified ARCHER-DANIELS-MIDLAND CO (NYSE:ADM) as a strong dividend contender with robust fundamentals. NYSE:ADM exhibits commendable financial health and profitability, all while offering a sustainable dividend. Let's delve into each aspect below.

Dividend Assessment of NYSE:ADM

ChartMill assigns a Dividend Rating to every stock. This score ranges from 0 to 10 and evaluates the different dividend aspects, including the yield, the growth and sustainability. NYSE:ADM scores a 7 out of 10:

• ADM's Dividend Yield is a higher than the industry average which is at 3.72.
• Compared to an average S&P500 Dividend Yield of 2.39, 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.

Health Analysis for NYSE:ADM

ChartMill assigns a proprietary Health Rating to each stock. The score is computed by evaluating various liquidity and solvency ratios and ranges from 0 to 10. NYSE:ADM was assigned a score of 7 for health:

• An Altman-Z score of 3.25 indicates that ADM is not in any danger for bankruptcy at the moment.
• Looking at the Altman-Z score, with a value of 3.25, ADM is in the better half of the industry, outperforming 73.91% of the companies in the same industry.
• 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.
• The Debt to FCF ratio of ADM (1.89) is better than 83.70% of its industry peers.
• ADM has a Debt/Equity ratio of 0.43. This is a healthy value indicating a solid balance between debt and equity.

Analyzing Profitability Metrics

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:

• With a decent Return On Assets value of 5.55%, ADM is doing good in the industry, outperforming 72.83% of the companies in the same industry.
• ADM has a Return On Equity of 13.10%. This is in the better half of the industry: ADM outperforms 70.65% of its industry peers.
• ADM's Return On Invested Capital of 7.94% is fine compared to the rest of the industry. ADM outperforms 79.35% of its industry peers.
• ADM has a better Profit Margin (3.32%) than 60.87% 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.

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Check the latest full fundamental report of ADM for a complete fundamental analysis.

Keep in mind

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.