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

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.

A Closer Look at Dividend for NYSE:ADM

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:

• ADM's Dividend Yield is rather good when compared to the industry average which is at 3.58. ADM pays more dividend than 81.52% of the companies in the same industry.
• ADM's Dividend Yield is a higher than the S&P500 average which is at 2.37.
• 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 32.41% of its income as dividend. This is a sustainable payout ratio.

Understanding NYSE:ADM's Health

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:

• An Altman-Z score of 3.24 indicates that ADM is not in any danger for bankruptcy at the moment.
• ADM has a better Altman-Z score (3.24) than 72.83% of its industry peers.
• ADM has a debt to FCF ratio of 1.89. This is a very positive value and a sign of high solvency as it would only need 1.89 years to pay back of all of its debts.
• The Debt to FCF ratio of ADM (1.89) is better than 83.70% of its industry peers.
• ADM has a Debt/Equity ratio of 0.43. This is a healthy value indicating a solid balance between debt and equity.

Evaluating Profitability: NYSE:ADM

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NYSE:ADM was assigned a score of 6 for profitability:

• The Return On Assets of ADM (5.55%) is better than 70.65% of its industry peers.
• Looking at the Return On Equity, with a value of 13.10%, ADM is in the better half of the industry, outperforming 70.65% of the companies in the same industry.
• With a decent Return On Invested Capital value of 7.94%, ADM is doing good in the industry, outperforming 78.26% of the companies in the same industry.
• ADM's Profit Margin of 3.32% is fine compared to the rest of the industry. ADM outperforms 60.87% 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.
• In the last couple of years the Gross Margin of ADM has grown nicely.

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

Disclaimer

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.