CHICAGO - Archer-Daniels-Midland Company (NYSE: NYSE:ADM), a global leader in agricultural supply chain management, has declared a quarterly cash dividend of 50.0 cents per share. The dividend is scheduled to be paid on December 12, 2024, to shareholders who are on record as of November 21, 2024.
This dividend marks ADM's 372nd consecutive quarterly payment, showcasing a commitment to shareholder returns that spans over 93 years. As of the end of the third quarter on September 30, 2024, ADM had 478,531,782 shares of common stock outstanding.
The company's long-standing history of uninterrupted dividends reflects its financial stability and dedication to providing consistent shareholder value. This regular return to shareholders is a testament to ADM's operational success and strategic management of its extensive portfolio in the agricultural sector.
ADM operates as a key player in the global agricultural supply chain, offering a wide range of products and services that address both human and animal nutrition needs. The company is also recognized for its efforts in sustainability and innovation, working towards reducing carbon emissions across various industries it serves.
The announcement of the dividend is based on a press release statement from ADM. This enduring practice of dividend payments underscores the company's ability to maintain a steady performance, despite the cyclical nature of the agricultural industry.
Investors and market watchers often view consistent dividend payments as an indicator of a company's financial health and its management's confidence in the future profitability. ADM's track record in this regard is notably significant, with a history of dividends that dates back to the early 20th century.
The dividend distribution is part of ADM's broader financial strategy to deliver shareholder value while continuing to invest in areas that drive growth and contribute to a more sustainable and healthier global community.
In other recent news, Archer-Daniels-Midland Company (ADM) announced the restatement of its financial statements for fiscal year 2023 and the first two quarters of 2024 due to errors in segment information disclosure. Despite this, the company does not anticipate any material impact on its consolidated financial statements. This comes alongside a lowered 2024 adjusted earnings forecast to a range of $4.50 to $5 per share, down from the previously estimated $5.25 to $6.25.
ADM is also dealing with a lawsuit over alleged safety failures at their Decatur, Illinois facility. The company has temporarily shut down its sole soybean processing facility in Iowa, potentially impacting the supply of soymeal.
Analysts from Barclays (LON:BARC) and Citi have maintained their Overweight and Neutral ratings on ADM stock respectively. Barclays has adjusted its profitability expectations for the company, citing a decrease in operating income projections by 13% to $1 billion. Citi, on the other hand, expects a sequential rise in ADM's earnings in the fourth quarter, specifically in the Agricultural Services & Oilseeds segment. These are the recent developments in ADM's operations.
InvestingPro Insights
ADM's commitment to shareholder returns extends beyond its impressive 93-year streak of dividend payments. According to InvestingPro data, the company's dividend yield stands at 3.81%, with a notable dividend growth of 11.11% over the last twelve months. This aligns with an InvestingPro Tip highlighting that ADM has raised its dividend for 49 consecutive years, underscoring its dedication to increasing shareholder value over time.
The company's financial health appears robust, with a P/E ratio of 8.85, significantly lower than the market average. This low earnings multiple, as pointed out by another InvestingPro Tip, suggests that ADM's stock may be undervalued relative to its earnings potential. Additionally, the company's liquid assets exceed its short-term obligations, indicating a strong financial position to support its dividend policy.
Despite facing challenges such as an 11.13% revenue decline in the last twelve months, ADM maintains a solid market position with a market capitalization of $25.1 billion. The company's ability to continue its dividend payments while navigating industry cycles speaks to its resilience and strategic management.
For investors seeking more comprehensive insights, InvestingPro offers additional tips and metrics that could provide a deeper understanding of ADM's financial landscape and future prospects. With 13 more tips available on the platform, subscribers can gain further valuable information to inform their investment decisions.
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