Monday, October 12, 2015

Archer Daniels Midland Co. Is Approaching Buy Territory

Oftentimes it's the behind-the-scenes companies that make investors rich. The companies that the average person might have never heard of, but use some form of their products every day. Archer Daniels Midland Company (NYSE:ADM) is one such company and is a world leader in agricultural processing as well as having a vast transportation network that gives them an advantage over smaller players in the industry. Archer Daniels Midland has paid a dividend every year since 1927 and increased it for the last 39 consecutive years. Shares of Archer Daniels Midland are trading around $44.70 giving investors a current yield of 2.51%.

The following tables/graphs are taken from my personal stock analysis spreadsheet. Data for the stock analysis was sourced from Archer Daniels Midland Company's investor relations page, Morningstar, and Yahoo Finance.

Historic Growth Rates:

Owners of Archer Daniels Midland have received average returns over the last decade. According to longrundata.com, shares of ADM have earned investors a total return of 117.2% or 8.1% annualized over the last decade. Those numbers are market returns at specific snapshots in time and aren't necessarily indicative of the business results over the same time period. Looking at the historic growth rates for per share dividends, earnings, revenue, and free cash flow gives a better idea of the true operational results that Archer Daniels Midland has delivered.

Continue reading the Archer Daniels Midland Company dividend stock analysis on Seeking Alpha.

2 comments:

  1. I'm very bullish on ADM long term. Reason being, China and India are going to put about a billion people into the middle class over the next twenty years. It is a sure bet they will eat more meat and more processed convenience foods. Both mean higher global demand for grains.

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  2. I love ADM! I've recently started a dividend portfolio and ADM is the first company that I bought! I'm starting to develop a dividend application(windows 7/8/10) to keep track of your own dividends. Please check out my blog and portfolio, thanks!

    http://dividendliberty.com/dividend-application-windows-7810/

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