News Image

Exploring NYSE:ADM's dividend characteristics.

By Mill Chart

Last update: Jul 15, 2024

ARCHER-DANIELS-MIDLAND CO (NYSE:ADM) is a hidden gem unveiled by our stock screening tool, featuring a promising dividend outlook alongside solid fundamentals. NYSE:ADM demonstrates decent financial health and profitability while ensuring a sustainable dividend. Let's break it down further.


Best Dividend stocks image

Exploring NYSE:ADM's Dividend

An integral part of ChartMill's stock analysis is the Dividend Rating, which spans from 0 to 10. This rating evaluates diverse dividend factors, including yield, historical data, growth, and sustainability. NYSE:ADM has received a 7 out of 10:

  • ADM's Dividend Yield is a higher than the industry average which is at 3.76.
  • ADM's Dividend Yield is a higher than the S&P500 average which is at 2.33.
  • On average, the dividend of ADM grows each year by 6.30%, which is quite nice.
  • ADM has paid a dividend for at least 10 years, which is a reliable track record.
  • ADM has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
  • 32.41% of the earnings are spent on dividend by ADM. This is a low number and sustainable payout ratio.

Assessing Health Metrics for NYSE:ADM

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NYSE:ADM has earned a 7 out of 10:

  • ADM has an Altman-Z score of 3.28. This indicates that ADM is financially healthy and has little risk of bankruptcy at the moment.
  • Looking at the Altman-Z score, with a value of 3.28, ADM is in the better half of the industry, outperforming 73.63% 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.
  • ADM has a better Debt to FCF ratio (1.89) than 82.42% of its industry peers.
  • A Debt/Equity ratio of 0.43 indicates that ADM is not too dependend on debt financing.

How do we evaluate the Profitability for NYSE:ADM?

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NYSE:ADM has achieved a 6:

  • With a decent Return On Assets value of 5.55%, ADM is doing good in the industry, outperforming 70.33% of the companies in the same industry.
  • With a decent Return On Equity value of 13.10%, ADM is doing good in the industry, outperforming 70.33% of the companies in the same industry.
  • ADM has a Return On Invested Capital of 7.94%. This is amongst the best in the industry. ADM outperforms 80.22% of its industry peers.
  • ADM's Profit Margin has improved in the last couple of years.
  • ADM's Operating Margin has improved in the last couple of years.
  • ADM's Gross Margin has improved in the last couple of years.

More Best Dividend stocks can be found in our Best Dividend screener.

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

Disclaimer

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.

Back