Archer-Daniels-Midland: Dividend King At Attractive Valuation

Summary

  • Agriculture giant Archer-Daniels-Midland is trading 25% below its all-time high, offering a dividend yield of 2.5%.
  • The company reported higher revenues and operating profits in Q1 2023, driven by global export demand in its agriculture services and oilseeds segment.
  • Despite potential risks from economic deterioration, ADM's attractive valuation presents a favorable risk/reward opportunity for investors.

Sunlit corn field under beautiful sky with clouds, closeup view

Liudmila Chernetska

Introduction

Archer-Daniels-Midland (NYSE:ADM), the agriculture giant with a $40 billion market cap, is trading 25% below its all-time high as the market has shifted its focus from value to growth stocks again. While economic headwinds and slowing inflation have caused investors

This article was written by

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Leo Nelissen is an analyst focusing on major economic developments related to supply chains, infrastructure, and commodities. He is a contributing author for iREIT®+HOYA Capital.

As a member of the iREIT®+HOYA Capital team, Leo aims to provide insightful analysis and actionable investment ideas, with a particular emphasis on dividend growth opportunities. Learn More.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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