ADM Declares Cash Dividend

Rhea-AI Summary

ADM's Board of Directors has declared a cash dividend of 50.0 cents per share, marking an approximately 11% increase from the previous quarter. The dividend is payable on Feb. 29, 2024, to shareholders of record on Feb. 8, 2024. This marks ADM's 369th consecutive quarterly payment, totaling over 92 years of uninterrupted dividends. As of Dec. 31, 2023, there were 513,612,404 shares of ADM common stock outstanding.

Insights

Financial Analyst

The announced increase in the dividend payout by ADM represents a significant move by the company's management, signaling confidence in the company's financial stability and profitability. An 11% increase in the dividend is a substantial hike, which is likely to be well-received by investors, as it directly increases shareholder value. This decision may also indicate that ADM has a strong cash flow position, allowing it to return more capital to shareholders while still investing in its operations and strategic initiatives.

From a financial perspective, the move could attract income-focused investors, potentially increasing the demand for ADM's stock. It's also worth noting that this marks ADM's 369th consecutive quarterly payment, which underscores a long-standing commitment to shareholder returns. Such a track record can be reassuring for investors looking for stable dividend-paying stocks, particularly in volatile market conditions.

Market Research Analyst

The increase in dividends may also reflect positively on ADM's sector, suggesting that the agribusiness and food production industry is performing well enough to support higher payouts. This could potentially influence the market perception of the sector's health and lead to a re-rating of similar stocks. However, it is crucial to compare the dividend yield and payout ratio with industry peers to assess the sustainability of such dividends. A significantly higher dividend yield compared to peers could be a red flag if not supported by underlying financials.

Additionally, the announcement's timing, amidst global economic uncertainties, could be seen as a strategic move to maintain investor interest. Companies that continue to grow dividends during challenging economic times can be perceived as resilient, which might provide a cushion against market downturns.

Economist

An 11% increase in dividends can have broader economic implications. It suggests that ADM is experiencing solid economic conditions within its operating markets, which is a positive indicator for the agricultural commodities and food processing industries. The company's ability to maintain a consistent dividend over 92 years points to its adaptability and resilience through various economic cycles.

Long-term shareholders might view such consistency as a hedge against inflation, especially in an environment where real returns on fixed-income investments are low. The long-term implications for stakeholders include a potentially enhanced reputation for financial strength and stability, which could benefit the company during economic downturns or in negotiations with creditors and partners.

CHICAGO--(BUSINESS WIRE)-- ADM’s (NYSE: ADM) Board of Directors has declared a cash dividend of 50.0 cents per share on the company’s common stock, an approximately 11% increase from last quarter’s dividend of 45.0 cents per share. The dividend is payable on Feb. 29, 2024, to shareholders of record on Feb. 8, 2024.

This is ADM’s 369th consecutive quarterly payment, a record of more than 92 years of uninterrupted dividends. As of Dec. 31, 2023, there were 513,612,404 shares of ADM common stock outstanding.

About ADM
ADM unlocks the power of nature to enrich the quality of life. We’re a premier global human and animal nutrition company, delivering solutions today with an eye to the future. We’re blazing new trails in health and well-being as our scientists develop groundbreaking products to support healthier living. We’re a cutting-edge innovator leading the way to a new future of plant-based consumer and industrial solutions to replace petroleum-based products. We’re an unmatched agricultural supply chain manager and processor, providing food security by connecting local needs with global capabilities. And we’re a leader in sustainability, scaling across entire value chains to help decarbonize our industry and safeguard our planet. From the seed of the idea to the outcome of the solution, we give customers an edge in solving the nutritional and sustainability challenges of today and tomorrow. Learn more at www.adm.com.

Source: Corporate Release
Source: ADM

View source version on businesswire.com: https://www.businesswire.com/news/home/20240125382031/en/

ADM Media Relations

Jackie Anderson

media@adm.com

312-634-8484

Source: ADM

FAQ

What is the cash dividend declared by ADM's Board of Directors?

ADM's Board of Directors has declared a cash dividend of 50.0 cents per share on the company's common stock, an approximately 11% increase from the last quarter's dividend of 45.0 cents per share.

When is the dividend payable and to whom?

The dividend is payable on Feb. 29, 2024, to shareholders of record on Feb. 8, 2024.

How many shares of ADM common stock were outstanding as of Dec. 31, 2023?

As of Dec. 31, 2023, there were 513,612,404 shares of ADM common stock outstanding.