Archer Daniels Midland (ADM) Dividend Increase

Archer Daniels Midland
Archer Daniels Midland (ADM) announced a dividend raise from a quarterly amount of $0.24 to $0.28, an increase of 16.6%. The new dividend is scheduled to be paid Mar 10, 2015 for shareholders on record at the close of business on Feb 17, 2014. In addition, ADM announced that the company is targeting $1.5 to $2.0 billion of share repurchases in 2015.

From the earnings release statement:

Fourth Quarter 2014 Highlights

  • Adjusted EPS of $1.00 excludes approximately $0.14 of asset disposal gains, $0.09 in benefits related to biodiesel tax credits attributable to the first three quarters of the year, $0.09 in noncash pension settlement charges, and other net charges totaling $0.06.
  • Oilseeds Processing decreased $107 million from an exceptional comparator, with record profits from North American soybean crushing and strong results from soybean crushing in Europe
    more than offset by weakness in South American results.
  • Corn Processing decreased $31 million with rising net corn costs through the quarter partially offset by strong ethanol results.
  • Agricultural Services increased $234 million amid strong margins, record volumes and good execution in the U.S., and improved international merchandising.
  • Trailing four-quarter-average adjusted ROIC was 9.0 percent, up 240 basis points year over year and 260 basis points above annual WACC of 6.4 percent.
  • During the fourth quarter, the company repurchased 9.4 million shares. During 2014, ADM returned more than $1.8 billion to shareholders through dividends and share repurchases.

Dividend Declaration and 2015 Capital Plan

  • ADM’s Board of Directors has declared a quarterly cash dividend of 28.0 cents per share on the company’s common stock, an increase of approximately 17 percent from the prior quarterly rate, resulting in estimated annual dividend payments of $0.7 billion in 2015.
  • The dividend is payable on March 10, 2015, to shareholders of record at the close of business on Feb. 17, 2015. As of Dec. 31, 2014, there were 636,704,061 shares of ADM common stock outstanding.
  • The company has targeted $1.5 to $2.0 billion of share repurchases in 2015, subject to strategic capital requirements.
  • The company expects 2015 capital expenditures of between $1.1 and $1.3 billion.
The Agricultural Services team executed well to capitalize on strong conditions, while international merchandising continued to show year-over-year recovery,” said ADM Chief Executive Officer Juan Luciano. “In North America and Europe, Oilseeds showed strong year-over-year growth, offset by weaker results in South America. Looking ahead in North America and Europe, solid crush margins and export opportunities have carried into the first quarter. Market conditions in South America Oilseeds should improve with the large harvest, and we are working toward higher returns throughout 2015 in this key geography. While U.S. ethanol demand was seasonally strong, boosted by the domestic response to lower gasoline prices, high industry production has built excess inventories. Margins in this industry should remain challenged until supplies are better aligned with demand. We will continue our work to optimize cost and product mix in the Corn business to maximize profitability.

My portfolio consists of 80 shares of Archer Daniels Midland, which increases my annual dividends from $76.80 to $89.60, an increase of $12.80.

10 thoughts on “Archer Daniels Midland (ADM) Dividend Increase

    • Its a great company, DWC. ADM sure has stood the test of time. I think this is their 40th year of dividend increases. And those dividends are rising pretty well. Last year was 26%, this year almost 17%. I will be owning this for a long time.

      R2R

  1. We don’t own share of ADM but always glad to see and here fellow DGI investors get their raise! Anytime you can get a 17% raise in one year, that is a great year in my book! I know with my job, I don’t come anywhere near that kind of annual raise! 🙂

    Congrats again…cheers to many more raises! AFFJ

    • You said it, AFFJ. A 17% raise is something that I get nowhere close to with my job…so, as an investor, its great to get something like that.

      Thanks for stopping by and the wishes
      cheers
      R2R

  2. The only two things I remember from college is “Up is good” and “More is better”. ADM fits both of these. I wish you the best. I think ADM just bought me a couple of beers tonight!

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