Why NYSE:ADM qualifies as a good dividend investing stock.

Last update: Dec 31, 2024

Unearth the potential of ARCHER-DANIELS-MIDLAND CO (NYSE:ADM) as a dividend stock recommended by our stock screening tool. NYSE:ADM maintains a robust financial footing and delivers a sustainable dividend. We'll delve into the details below.

How We Gauge Dividend for 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 7 out of 10:

ADM's Dividend Yield is rather good when compared to the industry average which is at 3.83. ADM pays more dividend than 86.67% of the companies in the same industry.
ADM's Dividend Yield is rather good when compared to the S&P500 average which is at 2.30.
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.

Looking at the Health

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NYSE:ADM scores a 6 out of 10:

An Altman-Z score of 3.05 indicates that ADM is not in any danger for bankruptcy at the moment.
The Altman-Z score of ADM (3.05) is better than 67.78% of its industry peers.
The Debt to FCF ratio of ADM is 2.85, which is a good value as it means it would take ADM, 2.85 years of fcf income to pay off all of its debts.
ADM has a better Debt to FCF ratio (2.85) than 71.11% of its industry peers.
ADM has a Debt/Equity ratio of 0.42. This is a healthy value indicating a solid balance between debt and equity.

Analyzing Profitability Metrics

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 5:

ADM's Return On Equity of 8.18% is fine compared to the rest of the industry. ADM outperforms 62.22% 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.

Our Best Dividend screener lists more Best Dividend stocks and is updated daily.

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

Keep in mind

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.