Archer Daniels Midland Dividend Increase

Archer Daniels Midland

Archer Daniels Midland (ADM) announced a 7.14% increase in its cash dividend. The quarterly cash dividend will increase from $0.28 to $0.30 per share and payable on Mar 8, 2016 to shareholders on record as of Feb 16, 2016.

Archer Daniels Midland is a dividend champion and this is the 41st consecutive annual dividend increase. The annual dividend rate goes up from $1.12 to $1.20. Yield going forward based on today’s closing price is 3.71%.

From the press release statement:

Juan Luciano, ADM chairman and CEO said “In 2016, our balanced capital allocation framework remains a priority, including a quarterly dividend rate increase of 7 percent to $0.30 per share, and share repurchases of between $1.0 billion and $1.5 billion, subject to strategic capital requirements. With a strong balance sheet, we will also remain opportunistic for investments, especially bolt-ons, in this more challenged macro environment.”

Our portfolio consists of 80 shares of Archer Daniels Midland, which increases our annual dividend from $89.60 to $96.00, an increase of $6.40.

8 thoughts on “Archer Daniels Midland Dividend Increase

  1. JC says:

    That was a nice increase from ADM and I’m sure owners are happy with it. 7% is well above the inflation rate and even better is shares look relatively cheap here to for a long term investment.

  2. This was great news. I always say stick to the sustainable dividend payers and you’ll be fine. Even with tremendous headwinds ADM pulled off this pleasant surprise. MMM also raised. If a stock gets beaten down to $5 a share but has the cash flow and low pay out ratio I say jump in. Much better off than chasing those high yield unicorns.

    • Thats right, DivHut. MMM is also starting to look good now. I looked at it a few months ago but it seemed too expensive…would love to own that stock. Definitely goes to show that the long track records help.

      Best
      R2R

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