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

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.

Evaluating Dividend: 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 8 out of 10:

• ADM's Dividend Yield is rather good when compared to the industry average which is at 3.58. ADM pays more dividend than 83.52% of the companies in the same industry.
• Compared to an average S&P500 Dividend Yield of 2.21, ADM pays a better dividend.
• 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.
• ADM pays out 37.91% of its income as dividend. This is a sustainable payout ratio.

Deciphering NYSE:ADM's Health Rating

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NYSE:ADM, the assigned 6 for health provides valuable insights:

• ADM has an Altman-Z score of 3.17. This indicates that ADM is financially healthy and has little risk of bankruptcy at the moment.
• ADM has a better Altman-Z score (3.17) than 74.73% of its industry peers.
• ADM has a debt to FCF ratio of 3.34. This is a good value and a sign of high solvency as ADM would need 3.34 years to pay back of all of its debts.
• ADM has a better Debt to FCF ratio (3.34) than 74.73% 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

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NYSE:ADM, the assigned 6 is a significant indicator of profitability:

• Looking at the Return On Assets, with a value of 4.94%, ADM is in the better half of the industry, outperforming 64.84% of the companies in the same industry.
• The Return On Equity of ADM (11.74%) is better than 68.13% of its industry peers.
• Looking at the Return On Invested Capital, with a value of 6.81%, ADM is in the better half of the industry, outperforming 68.13% of the companies in the same industry.
• 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.

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

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.