Archer-Daniels Offers A Good Dividend Yield With Limited Downside.

Alpha Mantra
88 Followers
(10min)

Summary

  • ADM is facing challenges with falling crush margins and lower commodity prices, but attractive valuations and a 4.23% dividend yield are hard to ignore.
  • ADM is currently trading near a historic low price-to-book ratio; further downside from the current multiple was only seen during the pandemic and the 2008 crash.
  • Cost-saving measures and portfolio simplification are expected to improve free cash flow and support profitability.

Farmer examining soybean plantation with cell phone

Drs Producoes

Introduction

With the recent broader market correction, the consumer staple index has emerged as an outperformer for the last couple of quarters. Although the returns aren’t much different between the broader market (SPY) and the consumer

This article was written by

88 Followers
I am a value focused investor, conducting fundamental research on sectors like but not limited to chemicals, homebuilders, building materials, industrials and metals & mining. I prefer to invest in stocks which are cheaply available and have a catalyst in the near future. My investment horizon ranges from a quarter to two years. I have over 3 years of active investing experience and served as buy side analyst at boutique research firm and family offices.

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.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You

About ADM Stock

SymbolLast Price% Chg
Market Cap
PE
Yield
Rev Growth (YoY)
Short Interest
Prev. Close
Compare to Peers

More on ADM

Related Stocks

SymbolLast Price% Chg
ADM
--