Why NYSE:ADM provides a good dividend, while having solid fundamentals.

Last update: Nov 18, 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.

Assessing Dividend for 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 8 out of 10:

Compared to an average industry Dividend Yield of 3.80, ADM pays a better dividend. On top of this ADM pays more dividend than 85.39% of the companies listed in the same industry.
ADM's Dividend Yield is rather good when compared to the S&P500 average which is at 2.22.
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 37.91% of its income as dividend. This is a sustainable payout ratio.

A Closer Look at Health for NYSE:ADM

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:ADM has achieved a 6 out of 10:

An Altman-Z score of 3.14 indicates that ADM is not in any danger for bankruptcy at the moment.
The Altman-Z score of ADM (3.14) is better than 71.91% 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's Debt to FCF ratio of 3.34 is fine compared to the rest of the industry. ADM outperforms 73.03% of its industry peers.
ADM has a Debt/Equity ratio of 0.48. This is a healthy value indicating a solid balance between debt and equity.

Assessing Profitability for NYSE:ADM

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:

ADM has a Return On Assets of 4.94%. This is in the better half of the industry: ADM outperforms 65.17% of its industry peers.
ADM has a better Return On Equity (11.74%) than 67.42% of its industry peers.
ADM has a Return On Invested Capital of 6.81%. This is in the better half of the industry: ADM outperforms 67.42% of its industry peers.
ADM's Profit Margin has improved in the last couple of years.
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.

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

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

Keep in mind

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.