Is NYSE:ADM a Good Fit for Dividend Investing?

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.

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:

• ADM's Dividend Yield is rather good when compared to the industry average which is at 3.86. ADM pays more dividend than 82.56% of the companies in the same industry.
• Compared to an average S&P500 Dividend Yield of 2.28, ADM pays a better dividend.
• 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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.

Assessing Health Metrics for NYSE:ADM

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:ADM has received a 6 out of 10:

• An Altman-Z score of 3.07 indicates that ADM is not in any danger for bankruptcy at the moment.
• The Altman-Z score of ADM (3.07) is better than 69.77% of its industry peers.
• ADM has a debt to FCF ratio of 2.85. This is a good value and a sign of high solvency as ADM would need 2.85 years to pay back of all of its debts.
• ADM's Debt to FCF ratio of 2.85 is fine compared to the rest of the industry. ADM outperforms 69.77% of its industry peers.
• A Debt/Equity ratio of 0.42 indicates that ADM is not too dependend on debt financing.

Profitability Insights: NYSE:ADM

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NYSE:ADM has earned a 5 out of 10:

• ADM has a Return On Equity of 8.18%. This is in the better half of the industry: ADM outperforms 60.47% 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.
• ADM's Gross Margin has improved in the last couple of years.

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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.