Titoli storici, con dividendi sempre crescenti e a lungo nel tempo, sono ad esempio Coca Cola, McDonald, Philip Morris, Procter&Gamble (che non a caso sono tra i titoli preferiti di un certo Warren Buffett, assoluto fan del Buy and … Recent acquisitions are expected to boost growth in 2020. That’s not surprising given the company’s dividend aristocrat status, and the fact that Archer Daniels Midland is set to become a dividend king (50+ consecutive annual dividend increases) in just nine years. About Us | })(); Copyright Notice | Scores of 50 are average, 75 or higher is very good, and 25 or lower is considered weak. This is a benefit of remaining consistently profitable during industry downturns—the company can use some of its excess cash flow to repurchase shares at lower prices. Our Dividend Safety Score answers the question, “Is the current dividend payment safe?” We look at some of the most important financial factors such as current and historical EPS and FCF payout ratios, debt levels, free cash flow generation, industry cyclicality, ROIC trends, and more. When oil prices are low, ethanol demand declines, which hurts Archer Daniel Midland’s profits. callback: callback As a result, Archer Daniels Midland appears to be a slightly undervalued dividend growth stock. Remember that Archer operates globally, which means that its long-term plans to diversify internationally need to be approved by foreign regulators, something that is far from certain. Archer Daniel Midland’s 10 year average price-to-book ratio is 1.36. However, while these underlying mega-trends may be true, that doesn’t necessarily translate to steady growth in sales, earnings, or free cash flow (FCF) for companies such as Archers Daniel Midland. The company produces a wide range of products and services, designed to meet the growing demand for food due to rising populations. From a dividend perspective, the payout looks quite safe. A strong credit rating helps ensure that Archer Daniels has cheap and plentiful access to debt with which to invest in growing its business while still rewarding dividend investors with safe and steadily growing payouts. The company has a $26 billion market capitalization. Archer Daniels’ has a Dividend Safety Score of 88, indicating that its payout is not just very safe, but among the most dependable on Wall Street. Such consistent and secure dividend growth is mostly a result of two factors. As a result, ADM’s current forward P/E ratio of 15.4 is much lower than the industry average of 20.2 and below the S&P 500’s forward P/E of 17.8. With that said, the company’s dividend remains very safe and offers reasonable growth prospects, but shareholders ultimately need to be optimistic about macro headwinds abating and ethanol mandates remaining favorable. It is an industry giant, with 450 crop procurement locations, 270 food and feed ingredient manufacturing facilities, and 46 innovation centers. Starting in 2012, management initiated a long-term turnaround plan that involved two main strategies. These 57 are large, US companies that have historically provided (slightly) better performance and (slightly) lower volatility … those with the lowest margins) and reallocate the capital into acquiring a number of higher margin businesses, specifically those in specialty foods products (such as the 2014 $3 billion purchase of Wild Flavors). } Meanwhile, ADM’s current dividend yield of 3.1%, in addition to being much higher than the market’s 2.0% payout, is also much greater than the industry median (1.9%), as well as the company’s own 22-year average payout of 1.9%. LSE:ADM Historic Dividend September 17th 2020 Payout ratios. Quando parliamo di Dividend Aristocrats, il mercato che offre più opportunità è quello americano. SPDR® S&P Euro Dividend Aristocrats UCITS ETF (EUR) - Exchange Traded Fund - ETF - Rating e analisi Morningstar, rendimenti e grafici The next Admiral Group dividend is expected to go ex in 5 months and to be paid in 6 months. (function() { View Admiral Group (ADM) Ord GBP0.01 (ADM) dividend dates and history including final, interim and special dividends. Every year since the shares outstanding peaked at 659 million in 2013, management has repurchased millions of shares, leaving the count today at well under 560 million shares outstanding. First, they are strong businesses that lead their respective industries, with the ability to generate consistent profits year after year–even during recessions. Our Dividend Growth Score answers the question, “How fast is the dividend likely to grow?” It considers many of the same fundamental factors as the Safety Score but places more weight on growth-centric metrics like sales and earnings growth and payout ratios. Whenever we see dividend aristocrats such as ADM in these situations, we get excited – perhaps an excellent business is now on sale for long-term investors. These metrics are important because Archer operates in a highly capital intensive industry, one that’s also cyclical and characterized by razor-thin margins. The 5-year average dividend yield is 3.03% (see red-line in chart). We expect Archer Daniels Midland to grow its future earnings by ~6% per year through 2024 and the stock has a current dividend yield of 3.0%. This investment included building six new plants, five innovation centers and labs, 17 acquisitions, and four joint ventures. SPY generated total returns of -1.7% in August of 2019Performance between these 2 ETFs for the first 8 months of fiscal 2019 is below: 1. Since tracking the data, companies cutting their dividends had an average Dividend Safety Score below 20 at the time of their dividend reduction announcements. The first is that management has a stated long-term policy of paying out just 30% to 40% of EPS in dividends each year. General Electric: Another Dividend Cut Expected in 12 to 18 Months simplysafedividends.com/general-electr… #dividend, Roper Technologies (ROP) simplysafedividends.com/roper-technolo… #dividend. With razor-thin operating margins in this commodity industry, there is no room for inefficiencies. It is the largest processor of corn in the world. on: function (event, callback) { Or more simply put, ADM helps to feed the world, thanks to its immense business and geographic diversification. Archer Daniels Midland was founded in 1902, when George A. Archer and John W. Daniels began a linseed crushing business. That decision came as a huge surprise to industry analysts, especially given the favorable economic relationships between the U.S. and Australia, as well as ADM’s various promises to help win support for the deal. Investors can learn more about all of the dividend aristocrats here. ADM's most recent quarterly dividend payment was made to shareholders of record on Thursday, December 10. The company’s dividend is also currently quite safe thanks to sound business fundamentals. The remaining 2% of operating profit is derived from a non-core ‘other’ segment. } Below is a closer look at five UK stocks, members of the S&P UK High Yield Dividend Aristocrats Index, that boast attractive yields, solid prospects for dividend growth, and an upside potential. The share price has stagnated due to deteriorating industry fundamentals. Dividend.com: The #1 Source For Dividend Investing. Source: Archer Daniels Midland Investor Presentation. Today, it is an agricultural giant. Profits held up, even during the Great Recession. Especially with shares offering a dividend yield that is near its highest level in 20 years. Many of those companies also exhibit consistent growth in value which is what you want along with dividend … This acquisition will increase Archer Daniels Midland’s origination, storage, and destination market capabilities in the U.K. Archer Daniels Midland is also expanding its animal nutrition business. McDonald’s is another example of a Dividend Aristocrat. Earnings will also be boosted by the company’s share buybacks. The 2012 drought, regulatory-driven ethanol business, strong U.S. dollar, volatile crop prices, and recent plunge in oil prices highlight some of the uncontrollabe struggles that Archer Daniels’ current business can face. The company has the largest grain terminal and shipping network in the country and maintains hundreds of processing plants and storage facilities around the world, for example. Dividend Safety Scores range from 0 to 100, and conservative dividend investors should stick with firms that score at least 60. This is Part 7 of the Series. That’s because, thanks to the highly commoditized nature of this industry, as well as the cyclical nature of agricultural products, Archer’s margins and return on shareholder capital can be highly volatile. L’indice replica la performance dell’indice sottostante acquistando tutti i componenti dello stesso (replica totale). Then again, this has always been the case, so how exactly has Archer Daniels been able to deliver an impressive 41 straight years of dividend growth in this boom/bust industry? We analyze 25+ years of dividend data and 10+ years of fundamental data to understand the safety and growth prospects of a dividend. }); Of course, the trick is to be able to carefully select the best quality companies, those with high-quality management teams, strong balance sheets, predictable businesses, and dividend-friendly corporate cultures. The previous Admiral Group dividend was 36.2p and it went ex 3 months ago and it was paid 2 months ago. The Index treats each constituent as a distinct investment opportunity without regard to its size by equally weighting each company. That’s why management has wisely chosen to take a conservative approach to debt over the decades, resulting in Archer Daniels having a below average leverage ratio (Debt/EBITDA), low debt/capital ratio, and a strong (double digit) interest coverage ratio. Each year, we review all 57 Dividend Aristocrats. event : event, Dividend Summary. This indicates the stock looks reasonably valued today. The Origination and Nutrition segments comprise 16% and 10% of operating profit, respectively. Not only that, they also have shareholder-friendly management teams that are dedicated to raising their dividends each year. Archer Daniels Midland has an unparalleled global transportation network, which serves as a huge competitive advantage. Dividend Aristocrat in Focus: Archer-Daniels-Midland Company (ADM) The Dividend Aristocrats are a select group of currently 57 S&P 500 stocks with 25+ years of consecutive dividend increases. In February 2019, the company officially closed on its $1.8 billion acquisition of global animal nutrition leader Neovia. Privacy Policy | Archer Daniels Midland has encountered a difficult operating environment. At its innovation centers, the company conducts research and development on how to more effectively respond to changes in customer demand, and improving processing efficiency. After all, ADM has been around for … That’s not surprising given the company’s strong, long-term payout growth rates over the decades. NOBL has generated total retu… The company has grown its dividend for the last 46 consecutive years and is increasing its dividend by an … Better yet, find one of those stellar aristocrat with a consistent dividend growth rate about 10% and you have a golden goose. The company’s payout ratios are healthy, the business generates dependable free cash flow, and the balance sheet is in great shape. However, for a company with such high reliance on commodity prices and government subsidies, ADM seems more like a trading stock to me rather than a core long-term investment – even despite its quality management team and strong balance sheet. In particular, the decline in agriculture commodity prices eroded Archer Daniels’ earnings for several years, while the lingering trade war represents an additional headwind. Fortunately, industry conditions have improved recently, which could pave the way for a recovery in the future. These capabilities allow Archer Daniels Midland to be the lowest cost and fastest provider of its commodities and processed products to many customers’ facilities, where it delivers directly. Accessing these long-term dividend payers can be done through individual stock names, mutual funds and ETFs designed to track various dividend aristocrat indices. In this case, we also recommend investors utilize the price-to-book ratio for valuation purposes. Dividend Aristocrats are companies in the S&P 500 that have increased their dividends every year for twenty-five years straight. And it’s not just U.S. government policy that is a risk. 25 or more years of DIVIDEND GROWTH! While earnings volatility in any given year can occasionally push the payout ratio above this level, overall Archer’s dividend is well covered by its earnings, providing a strong safety buffer during times of industry or economic stress. The company’s global distribution system provides the company with high margins and barriers to entry. Contact Us, COPYRIGHT © 2017 Simply Safe Dividends LLC, Archer Daniels Midland (ADM): A Dividend Aristocrat Trading at Some of the Best Valuations in 20 Years, Pfizer’s COVID-19 Vaccine Shows Promise; Spin-off to Execute November 13 With Dividend Adjustment Next Quarter, Dominion’s Lower Dividend and New Business Mix Improve Safety Profile; We Plan to Hold Our Shares, AltaGas’s Falling Leverage Supports Dividend But Firm Will Evaluate Splitting Off Midstream Business, Altria’s Tobacco Business Remains Resilient But Longer-term Growth Uncertainties Linger, some of the most important financial factors. In addition, the company’s large scale and strong financial position continues to bode well for its long-term dividend growth outlook, thanks to management factoring in consistent payout growth into its long-term capital allocation plans. Updated on January 7th, 2020 by Samuel Smith. Since 2014, Archer Daniels Midland invested more than $5 billion in new growth projects. I first stumbled upon the Dividend Aristocrats index in late 2007, and instantly understood why dividend growth investing is such a powerful wealth generating tool.If someone had invested in the Dividend Aristocrats index after reading my review of the list at the beginning of 2008, they would have tripled their money.An investment in the dividend … However, the number of uncontrollable macro factors the company depends on for pricing many of its products and generating an acceptable return is still a major risk. 1. Let’s take a look at Archer Daniels Midland (ADM), one of the oldest and most time-tested members of this group (with 41 straight years of payout growth to its name), to see if this boring agricultural giant might be appropriate for a diversified dividend growth portfolio. That’s especially true with a growing global population and with faster-growing emerging markets (such as China) whose middle classes are increasingly consuming more western style diets. The company launched an aggressive cost-cutting program in 2015 that had produced $200 million in annual run-rate cost savings by 2018. An expanding valuation multiple could generate 0.9% annual returns for shareholders over the next five years. That included investing $200 million into expanding Australia’s grain export infrastructure (Australia is the world’s 3rd largest grain exporter behind the US and Canada) and limiting annual increases in silo fees. Furthermore, industry conditions have finally improved, which is setting the stage for a return to growth. First and foremost is that Archer operates in a highly competitive field. For example, in 2011 and 2012 the severe drought in the U.S. resulted in far less demand for food processing (due to crop failures), which had a large negative impact on its operating profits. Altogether, Archer Daniels’ dividend appears to be very safe. The other major safety factor is the company’s strong balance sheet, including a large cash position, high current ratio (short-term assets/short-term liabilities), and low leverage ratio. It also ranks among the elite Dividend Aristocrats … We wrote a detailed analysis reviewing how Dividend Safety Scores are calculated, what their real-time track record has been, and how to use them for your portfolio here. Specifically, that includes increased demand for soybeans and grains (from long-term rising meat demand in emerging markets) and ADM’s move towards specialty foods, which should allow long-term sales growth in the low single digits. Finally, and most importantly in a commodity industry such as this, management is laser focused on achieving large scale cost reductions through numerous avenues, including synergies with the large number of recent acquisitions. Archer Daniels Midland has had some tough times in the past several years. Please send any feedback, corrections, or questions to support@suredividend.com. Archer-Daniels-Midland operates in 160 countries … In 1923, Archer-Daniels Linseed Company acquired Midland Linseed Products Company, which created Archer Daniels Midland. That level of earnings growth should likely translate to around mid-single-digit annual dividend increases over the long-term. Dividend Aristocrats "The Dividend Aristocrats are defined as firms that have increased their dividend payouts for 25 consecutive years or more. ADM does not warrant or guarantee the accuracy or completeness of the information disclosed herein, and under no circumstances will ADM be liable for any loss or direct, indirect, incidental, special or consequential damages caused by reliance or use of the information disclosed herein, or for the risks of the stock market. That means that its sales, earnings, and cash flow are driven by factors largely out of its control, including the weather, commodity prices (especially the prices of soybeans, corn, and oilseeds), and government agricultural policies. Terms of Service | listeners: [], Dividend Aristocrat Archer-Daniels-Midland is an undervalued, high-yield stock....ADM Buying Dividend Aristocrats can be a great, long-term play for income investors. In total, the company has taken a number of actions to right the ship over the past several years. Combined with ongoing cost cutting and higher specialty segment margins, as well as share buybacks (4.6% annually over the past five years), this should allow ADM to hopefully achieve low to mid-single-digit annual EPS growth over time, although the path almost certainly won’t be linear given all of the macro sensitivities the business has. Dividend Aristocrats Weighting: This Dividend Aristocrats portfolio utilizes a equal level of stock weighting, with the highest dividend paying companies. Even if commodity prices weaken further, it’s hard to imagine a scenario that jeopardizes ADM’s dividend. The reason for Archer Daniels Midland’s remarkable durability in recessions could be that grains still need to be processed and transported, regardless of the economic climate. I dividendi sono distribuiti agli investitori (Semestralmente). As a result, the stock appears to be a bit undervalued at current prices on the basis of book value, our preferred valuation metric for this particular stock. The Dividend Aristocrats are S&P 500 index constituents that have increased the dividend paid for 25 consecutive years or more.. Archer-Daniels Midland has paid a dividend since 1927 and increased its dividend for 44 consecutive years; qualifying the company as a Dividend Aristocrat and Dividend Champion. The next step would be to leverage the company’s world-spanning supply chain and large capital resources to launch numerous specialty products, which management believes can achieve at least $1 billion in new annual sales. Archer Daniels Midland’s profits are volatile and fluctuate with the price of grains and commodities like oil. if (!window.mc4wp) { In August of 2019, The Dividend Aristocrats, as measured by the Dividend Aristocrats ETF (NOBL), declined just slightly. Of course the key to strong and steady dividend growth, especially given management’s targeted 30% to 40% EPS payout ratio range, is the company’s ability to overcome its recent industry challenges and achieve the strong long-term growth that analysts think is possible. Another risk is U.S. agricultural policy, specifically corn subsidies and ethanol mandates, which have resulted in corn becoming Archer’s largest and most important product over the past few decades. I dividendi sono distribuiti agli investitori (Trimestralmente). Best Dividend Aristocrat Stocks to Buy Now Include — Archer Daniels Midland (NYSE: ADM) One of the best dividend-paying stocks to buy is Archer Daniels Midland, a global food processing and commodities trading corporation that offers a 3.65% dividend yield. As a result, Archer’s cash flow easily covers its debt and short-term obligations and explains why it has a very strong, investment-grade credit rating. This gives way to economies of scale and efficiencies in production and distribution. } Historically, dividend growth investing has been one of the best ways for regular people to compound their wealth and income over time. While Archer Daniels’ existing businesses will continue generating cash flow for many years to come, it seems that the company’s management team recognizes that the company’s high sensitivity to commodity prices isn’t ideal. Overall, it’s hard not to like the transition Archer Daniels Midland is making, and its set of hard assets is very difficult to replicate. Disclaimer | It’s simple, the companies in the list must have increased their dividends every year for 25 years. At Sure Dividend, we are big believers that the best stocks to buy and hold to generate long-term wealth, have a number of qualities in common. Trading near their 52-week low, ADM’s shares are starting to look interesting. Archer Daniels Midland’s total sales fell 7.9% in 2016, along with a 27% decline in diluted earnings-per-share. It operates four business segments: Origination, Oilseeds, Carbohydrate Solutions, and Nutrition. While management appears to be making the right capital allocation moves to gradually diversify the company into higher-returning areas that are less susceptible to swings in commodity prices, these actions also suggest that management might be less optimistic about some of Archer Daniel’s existing operations. Find the latest dividend history for Archer-Daniels-Midland Company Common Stock (ADM) at Nasdaq.com. And since Archer Daniels is essentially a middleman between farms and consumers, it is unable to achieve any kind of moat, meaning significant pricing power.
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