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

Discover ARCHER-DANIELS-MIDLAND CO (NYSE:ADM)—a stock that our stock screener has recognized as a solid dividend pick with strong fundamentals. NYSE:ADM showcases decent financial health and profitability while providing a sustainable dividend. We'll explore the specifics further.

Deciphering NYSE:ADM's Dividend Rating

ChartMill employs its own Dividend Rating system for all stocks. This score, on a scale of 0 to 10, is determined by evaluating different dividend factors, such as yield, historical performance, dividend growth, and sustainability. NYSE:ADM has been assigned a 7 for dividend:

• Compared to an average industry Dividend Yield of 3.46, ADM pays a better dividend. On top of this ADM pays more dividend than 86.96% 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 2.43.
• 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.
• 24.38% of the earnings are spent on dividend by ADM. This is a low number and sustainable payout ratio.

Deciphering NYSE:ADM's Health Rating

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:

• ADM has an Altman-Z score of 3.48. This indicates that ADM is financially healthy and has little risk of bankruptcy at the moment.
• ADM has a better Altman-Z score (3.48) than 77.17% of its industry peers.
• ADM has a Debt/Equity ratio of 0.33. This is a healthy value indicating a solid balance between debt and equity.
• The Quick ratio of ADM (1.07) is better than 65.22% of its industry peers.

Profitability Insights: 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 7 is a significant indicator of profitability:

• Looking at the Return On Assets, with a value of 7.15%, ADM is in the better half of the industry, outperforming 77.17% of the companies in the same industry.
• With an excellent Return On Equity value of 15.61%, ADM belongs to the best of the industry, outperforming 83.70% of the companies in the same industry.
• With an excellent Return On Invested Capital value of 9.17%, ADM belongs to the best of the industry, outperforming 84.78% of the companies in the same industry.
• The last Return On Invested Capital (9.17%) for ADM is above the 3 year average (7.06%), which is a sign of increasing profitability.
• ADM has a better Profit Margin (4.06%) than 66.30% of its industry peers.
• ADM's Profit Margin has improved in the last couple of years.
• 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.

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

Our latest full fundamental report of ADM contains the most current fundamental analsysis.

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.