Wednesday, January 26, 2022

Dividend Increase - Archer-Daniels-Midland Company (ADM)



 

Yesterday, January 25th the Board of Directors of Archer-Daniels-Midland Company (ADM) announced a quarterly dividend increase of from $ 0.37 to $ 0.40 per share that’s payable March 1, 2022 to holders of record February 8, 2021. This represents an 8.11% increase over the last quarterly dividend.

 

“Last month, at our Global Investor Day, we unveiled our strategic plan and reiterated our balanced financial framework for value creation, including using our strong cash flows to deliver both growth investments and distributions to shareholders. We’re confident in our plan and committed to continuing to deliver value for our shareholders, which is why today, in addition to reporting our outstanding 2021 results and a strong 2022 outlook, we’re pleased to announce an 8% increase in our quarterly dividend. We’re proud of our record of more than 40 years of annual dividend growth, and excited about our future,” said Chairman and CEO Juan Luciano.

 

This is the 47th year of consecutive annual dividend increases for this dividend aristocrat.

 

With current price $ 68.37 (yesterday's close), this raise brings their dividend yield to 2.34%.

 

ADM is a Dividend Champions with a 47 year streak of dividend increases. Dividend growth rates for 1, 3, 5 and 10 years are 2.8, 3.4, 4.3 and 8.5 (Dividend Champions.xls)

 

 

Since I own 85 shares of ADM, this will increase my portfolio's projected annual net dividend income by $ 7.60.

 

I was expecting an increase of around 4%, so the announcement was a pleasant surprise.

 

This is the 6th dividend increase I've received from Archer-Daniels-Midland Company since initiating a position in February 2016. During this period, the dividend has grown reasonably from $0.30 to $0.40 or 33.3%

 

This increase raises my YOC to 4.50%.

 

 

Summary of 2022 Dividend Increases / Cuts

 

 

Click here to see my portfolio holdings.

 

You can follow the development of my dividends here.

 

Full Disclosure: Long ADM

 

Thanks for stopping by!

 

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