Archer-Daniels-Midland Company (NYSE:ADM) Increases Dividend to $0.51 Per Share

Archer-Daniels-Midland Company (NYSE:ADM) declared a quarterly dividend on Tuesday, February 4th,RTT News reports. Shareholders of record on Tuesday, February 18th will be paid a dividend of 0.51 per share on Tuesday, March 11th. This represents a $2.04 dividend on an annualized basis and a yield of 4.42%. The ex-dividend date of this dividend is Tuesday, February 18th. This is a boost from Archer-Daniels-Midland’s previous quarterly dividend of $0.50.

Archer-Daniels-Midland has increased its dividend by an average of 10.6% annually over the last three years and has increased its dividend every year for the last 53 years. Archer-Daniels-Midland has a dividend payout ratio of 42.1% meaning its dividend is sufficiently covered by earnings. Equities analysts expect Archer-Daniels-Midland to earn $5.03 per share next year, which means the company should continue to be able to cover its $2.04 annual dividend with an expected future payout ratio of 40.6%.

Archer-Daniels-Midland Stock Up 0.9 %

Shares of NYSE ADM opened at $46.12 on Friday. The business has a 50-day simple moving average of $50.06 and a two-hundred day simple moving average of $54.83. Archer-Daniels-Midland has a 52 week low of $44.92 and a 52 week high of $66.08. The company has a market cap of $22.07 billion, a P/E ratio of 12.77 and a beta of 0.72. The company has a quick ratio of 0.84, a current ratio of 5.44 and a debt-to-equity ratio of 0.37.

Archer-Daniels-Midland (NYSE:ADM) last posted its quarterly earnings results on Tuesday, February 4th. The company reported $1.14 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.07 by $0.07. The business had revenue of $21.50 billion for the quarter, compared to analyst estimates of $22.77 billion. Archer-Daniels-Midland had a return on equity of 10.44% and a net margin of 2.10%. Archer-Daniels-Midland’s revenue for the quarter was down 6.4% compared to the same quarter last year. During the same period last year, the company earned $1.36 EPS. Research analysts anticipate that Archer-Daniels-Midland will post 4.53 earnings per share for the current fiscal year.

Archer-Daniels-Midland declared that its Board of Directors has initiated a share repurchase plan on Wednesday, December 11th that allows the company to buyback 100,000,000 outstanding shares. This buyback authorization allows the company to purchase shares of its stock through open market purchases. Shares buyback plans are typically an indication that the company’s board of directors believes its stock is undervalued.

Wall Street Analysts Forecast Growth

ADM has been the subject of a number of analyst reports. Citigroup upped their price target on Archer-Daniels-Midland from $51.00 to $55.00 and gave the stock a “neutral” rating in a research report on Wednesday, December 4th. Bank of America lowered their price objective on Archer-Daniels-Midland from $54.00 to $48.00 and set an “underperform” rating for the company in a research note on Tuesday, February 11th. Stephens decreased their target price on Archer-Daniels-Midland from $55.00 to $52.00 in a research report on Tuesday, February 4th. BMO Capital Markets dropped their target price on Archer-Daniels-Midland from $51.00 to $49.00 and set a “market perform” rating on the stock in a research note on Wednesday, February 5th. Finally, Barclays lowered their price target on Archer-Daniels-Midland from $56.00 to $50.00 and set an “underweight” rating for the company in a research report on Tuesday, January 21st. Two research analysts have rated the stock with a sell rating and seven have given a hold rating to the stock. Based on data from MarketBeat.com, Archer-Daniels-Midland presently has an average rating of “Hold” and an average target price of $55.11.

Archer-Daniels-Midland Company Profile

Archer-Daniels-Midland Company engages in the procurement, transportation, storage, processing, and merchandising of agricultural commodities, ingredients, flavors, and solutions in the United States, Switzerland, the Cayman Islands, Brazil, Mexico, Canada, the United Kingdom, and internationally. It operates in three segments: Ag Services and Oilseeds, Carbohydrate Solutions, and Nutrition.