Balancing Dividends and Fundamentals: The Case of NYSE:ADM.

ARCHER-DANIELS-MIDLAND CO (NYSE:ADM) has caught the attention of dividend investors as a stock worth considering. NYSE:ADM excels in profitability, solvency, and liquidity, all while providing a decent dividend. Let's delve into the details.

Evaluating Dividend: 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 3.73, ADM pays a better dividend. On top of this ADM pays more dividend than 81.52% of the companies listed in the same industry.
• Compared to an average S&P500 Dividend Yield of 2.27, ADM pays a bit more dividend than the S&P500 average.
• 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.

How We Gauge Health 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 6 for health:

• An Altman-Z score of 3.23 indicates that ADM is not in any danger for bankruptcy at the moment.
• ADM has a Altman-Z score of 3.23. This is in the better half of the industry: ADM outperforms 73.91% of its industry peers.
• 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.
• ADM has a Debt to FCF ratio of 3.34. This is in the better half of the industry: ADM outperforms 78.26% of its industry peers.
• A Debt/Equity ratio of 0.48 indicates that ADM is not too dependend on debt financing.

Exploring NYSE:ADM's Profitability

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:

• ADM has a better Return On Assets (4.94%) than 66.30% of its industry peers.
• ADM has a better Return On Equity (11.74%) than 68.48% of its industry peers.
• ADM has a better Return On Invested Capital (6.81%) than 70.65% 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.
• ADM's Gross Margin has improved in the last couple of years.

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.

Disclaimer

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.