Exploring NYSE:ADM's dividend characteristics.

Our stock screener has spotted ARCHER-DANIELS-MIDLAND CO (NYSE:ADM) as a good dividend stock with solid fundamentals. NYSE:ADM shows decent health and profitability. At the same time it gives a good and sustainable dividend. We'll dive into each aspect below.

Dividend Assessment of NYSE:ADM

ChartMill provides a Dividend Rating for every stock, ranging from 0 to 10. This rating assesses various dividend aspects, including yield, growth, and sustainability. NYSE:ADM earns a 7 out of 10:

• Compared to an average industry Dividend Yield of 3.74, ADM pays a bit more dividend than its industry peers.
• ADM's Dividend Yield is a higher than the S&P500 average which is at 2.28.
• 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 their dividend for at least 10 years, which is a reliable track record.
• 37.91% of the earnings are spent on dividend by ADM. This is a low number and sustainable payout ratio.

Understanding NYSE:ADM's Health Score

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 3.21. This indicates that ADM is financially healthy and has little risk of bankruptcy at the moment.
• The Debt to FCF ratio of ADM is 3.34, which is a good value as it means it would take ADM, 3.34 years of fcf income to pay off all of its debts.
• The Debt to FCF ratio of ADM (3.34) is better than 80.22% of its industry peers.
• A Debt/Equity ratio of 0.48 indicates that ADM is not too dependend on debt financing.
• ADM has a Current ratio of 1.44. This is amongst the best in the industry. ADM outperforms 93.41% of its industry peers.
• Looking at the Quick ratio, with a value of 0.88, ADM belongs to the top of the industry, outperforming 97.80% of the companies in the same industry.

Looking at the Profitability

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:

• Looking at the Return On Assets, with a value of 4.94%, ADM is in the better half of the industry, outperforming 76.92% of the companies in the same industry.
• With a decent Return On Equity value of 11.74%, ADM is doing good in the industry, outperforming 67.03% of the companies in the same industry.
• ADM has a Return On Invested Capital of 6.81%. This is in the better half of the industry: ADM outperforms 71.43% of its industry peers.
• In the last couple of years the Profit Margin of ADM has grown nicely.
• ADM's Operating Margin has improved in the last couple of years.
• In the last couple of years the Gross Margin of ADM has grown nicely.

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

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

Keep in mind

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.