Analysis – Archer-Daniels Midland Co. Increases Dividend by 17%

ADM

Archer-Daniels Midland Company announced a regular quarterly dividend of $0.28 per share, a 17 percent increase from the prior rate of $0.24 per share.  The dividend will be paid at the new higher rate on March 10, 2015 to shareholders of record at close of business on February 17, 2015.  Archer-Daniels Midland Company is a member of the Top 100 dividend growth candidates.

Date Quarterly Dividend
2/17/2015 0.28
11/18/2014 0.24
8/19/2014 0.24
5/13/2014 0.24
2/18/2014 0.24
11/12/2013 0.19
8/20/2013 0.19
5/14/2013 0.19
2/15/2013 0.19
11/13/2012 0.175
8/14/2012 0.175
5/15/2012 0.175
2/14/2012 0.175
11/15/2011 0.175
8/16/2011 0.16
5/17/2011 0.16
2/15/2011 0.16
11/16/2010 0.15
8/17/2010 0.15
5/18/2010 0.15
2/16/2010 0.15

Analysis of Valuation of Archer-Daniels Midland Co. (Symbol ADM).

Archer-Daniels is trading below its average price/sale (P/S) range. Archer-Daniels is trading toward the top of its average dividend yield range.

Price 2/4/15 % Yield 5 Year Div. Growth Rate SPS 2015 P/S  Ratio 10 yr P/S  Low 10 yr P/S  High 5 yr max Yield % 5 yr lowest Yield %
46.15 2.4% 8 141.25 0.33 0.12 0.84 2.60% 1.80%

Archer-Daniels Midland Co. Dividend Yield Chart (Click to enlarge)

ADM

Explanation:  Dividend growth stocks may be valued upon historical relative price/sales and current yield analysis. Dividend stocks trading at a low historical price/sales (P/S) ratio should be viewed more highly to investors due to their depressed valuation versus other higher P/S ratio stocks.  Max P/S price target is based upon company reaching its highest historical P/S ratio.  Dividend stocks should also be viewed favorably when the current yield is above historical readings for the past 10 years.

Further information on evaluating dividend growth candidates can be found

at http://seekingalpha.com/author/timothy-mcintosh/articles

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