Wednesday, February 10, 2016

Recent Buy - Archer Daniels Midland Company (ADM)

9th February I Bought 60 shares of Archer Daniels Midland Company at $ 32.79 per share plus commission.


Archer-Daniels-Midland Company procures, transports, stores, processes, and merchandises agricultural commodities and products. The companys Oilseeds Processing segment originates, merchandises, crushes, and processes soybeans and soft seeds into vegetable oils and protein meals. It offers ingredients for the food, feed, energy, and industrial products industries; crude vegetable and salad oils; refined oils; oilseed protein meals; natural health and nutrition products, and other specialty food and feed ingredients; and cottonseed flour and cotton cellulose pulp. This segment is also involved in edible oils refining, sugar milling and refining, and grains processing activities; and the provision of biodiesel and fertilizers, specialty fats, and oleo chemicals, as well as supplies peanuts and tree nuts, and agricultural commodity raw materials. Its Corn Processing segment provides
sweeteners, starch, syrup, glucose, and dextrose; alcohol, amino acids, and other specialty food and animal feed ingredients; ethyl alcohol; corn gluten feed and meals, and distillers’ grains; citric acid, lactates, sorbitol, xanthan gum, and glycols; and propylene and ethylene glycol. The companys Agricultural Services segment buys, stores, cleans, and transports agricultural commodities, such as oilseeds, corn, wheat, milo, oats, rice, and barley; and resells those commodities as food and feed ingredients, and raw materials; originates and processes wheat into wheat flour; processes and distributes formula feeds, and animal health and nutrition products; and procures, processes, and distributes edible beans. Its Wild Flavors and Specialty Ingredients segment offers flavors, colors, sweeteners, and health ingredients; and nuts, fruits, seeds, legumes, and grains. The company is also involved in futures commission merchant activities; and offers broker services and insurance. Archer-Daniels-Midland Company was founded in 1898 and is headquartered in Chicago, Illinois.

ADM is a Dividend Champions with an 40 year streak of dividend increases. Dividend growth rates for 1, 3, 5 and 10 years are 16.7, 17.0, 13.3 and 12.7. (Dividend Champions.xls) After the last dividend increase declaration, Archer Daniels Midland Company now pays dividends of $0.30 per share normally in March, June, September and December.

Towards the end of last year, ADM was a popular company among bloggers, here are a couple of good analysis of the company:



Details of my purchase:



Some ratings for AMD:

    Yahoo:  Mean Recommendation 2.6, 1y Target Est $37.44
    Reuters: Mean Rating 2.69
    Morningstar:  (****)


At today's exchange rate, this purchase 60 shares of ADM will increase €47.74 ($53.64) of my expected annual net dividend income and will increase my portfolio's projected annual net dividend income to €9815.00. With purchase price $32.79 plus commission ($5.00) my starting yield on cost is 3.65%.

Click here to see my portfolio.

Full Disclosure: Long ADM  

6 comments:

  1. Nice purchase, Hawk. ADM is looking pretty attractive these days. Nice entry point for a long term investment.

    Best wishes
    R2R

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  2. Nice one DH. ADM is also on my watch list, I just wish I had more bullets to fire with :)

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  3. Looks like a great buy. There are so many stocks down on their luck that I find it hard to decide what to buy. I noticed another blogger also bought ADM recently but I never looked them up. After reading the description, it's peaked my interest. Thanks.

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  4. I just added to my ADM last week so you already know how I feel about it. Take advantage of this time when everyone else is selling. Great yield and quite safe based on current cash flow. Nice buy!

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  5. Great buy with ADM. I have seen that many people in the personal finance/FI community have bought into ADM over the past month or so and as a result have put it on my watch list. I will be following it closely and researching more on the company before I commit and buy any stock.

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  6. Solid buy Dividend Hawk, have been ADM for the last few weeks.

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