Updated on July 7th, 2025 by Felix Martinez
The Dividend Kings are a select group of stocks that have increased their dividends for at least 50 consecutive years. We believe the Dividend Kings are among the highest-quality dividend growth stocks to buy and hold for the long term.
With this in mind, we created a full list of all the Dividend Kings. You can download the full list, along with important financial metrics such as dividend yields and price-to-earnings ratios, by clicking the link below:
Archer Daniels Midland (ADM) is a recent addition to the Dividend Kings list as it just reached 50 consecutive years of dividend increases.
This article will provide an overview of the company’s business, its growth prospects, competitive advantages, and expected returns.
Business Overview
Archer Daniels Midland was founded in 1902 when George A. Archer and John W. Daniels began a linseed-crushing business. In 1923, Archer-Daniels-Midland acquired Midland Linseed Products Company, which created Archer-Daniels-Midland.
Today, it is a major player in the agricultural industry. Archer-Daniels-Midland operates in 160 countries and generates annual revenue above $85.5 billion.
The company produces a wide range of products and services designed to meet the growing demand for food, driven by rising populations.
Source: Investor Presentation
It operates four business segments: Origination, Oilseeds, Carbohydrate Solutions, and Nutrition. The Oilseeds segment is Archer Daniels Midland’s largest.
ADM reported Q1 2025 net earnings of $295 million ($0.61 per diluted share), down 57% from $686 million ($1.42 per share) in Q1 2024. Adjusted net earnings were $338 million ($0.70 per share), down 52% from $708 million ($1.46 per share). Revenues were not specified but implied to be stable with 3.8% organic growth noted elsewhere. Total segment operating profit decreased 38% to $747 million from $1,196 million, primarily due to $49 million in restructuring charges. Adjusted EBITDA was not detailed for Q1 alone, but it was aligned with expectations. Cash flows used in operations were $342 million, with adjusted operating cash flow before working capital at $439 million.
Trailing four-quarter average ROIC was 5.4% (adjusted 7.0%). Segment performance included Ag Services & Oilseeds (AS&O) at an operating profit of $412 million, down 52%. Ag Services declined 31% due to lower volumes and margins, while Crushing decreased 85% due to increased capacity and trade uncertainties. Refined Products also decreased 21%. Carbohydrate Solutions’ operating profit was $240 million, down 3%, with Starches & Sweeteners down 21% but Vantage Corn Processors up significantly. Nutrition operating profit rose 13% to $95 million, driven by Animal Nutrition (up 150% to $20 million) and Flavors in Human Nutrition. Corporate and other contributions totaled $96 million, a 21% decrease.
ADM reaffirmed its 2025 adjusted EPS guidance of $4.00–$4.75, with the expectation of a lower end due to market conditions. CEO Juan Luciano emphasized operational improvements, cost savings, and portfolio simplification, positioning ADM to navigate uncertainties. Strategic actions included network consolidation in AS&O and $45–$77 million in timing-related incentive adjustments across segments. Despite challenges, ADM’s focus on execution and capital discipline supports its outlook for sustained performance.
Growth Prospects
Acquisitions are a significant driver of ADM’s historical growth. The company has acquired multiple businesses over the past few decades to boost its growth.
Source: Investor Presentation
We believe that a growth rate of around 4.0% is feasible moving forward. The business is resilient to recessions, as people still need to eat even during an economic downturn.
On the other hand, Archer-Daniels-Midland does not profit from economic expansion, as the amount of food sold does not rise quickly during good times. Thus, a strong economy is not a significant tailwind for Archer-Daniels-Midland, unlike many other companies, which profit substantially from higher consumer spending.
Competitive Advantages & Recession Performance
Archer Daniels Midland has built significant competitive advantages over the years. It is the world’s largest processor of corn, which leads to economies of scale and increased efficiencies in production and distribution.
The company is a major industry player with ~380 crop procurement locations, 325 food and feed processing facilities, and 68 innovation centers.
At its innovation centers, the company conducts research and development to respond more effectively to changes in customer demand and improve processing efficiency. Archer Daniels Midland’s unparalleled global transportation network provides a significant competitive advantage.
The company’s global distribution system provides high margins and barriers to entry, allowing Archer Daniels Midland to remain highly profitable even during industry downturns.
Profits held up, even during the Great Recession. Earnings per share during the Great Recession are below:
2007 earnings-per-share of $2.38
2008 earnings-per-share of $2.84 (19% increase)
2009 earnings-per-share of $3.06 (7.7% increase)
2010 earnings-per-share of $3.06
Archer Daniels Midland’s earnings per share increased in 2008 and 2009 during the Great Recession. Very few companies can boast such a performance in one of the worst economic downturns in U.S. history.
The reason for Archer Daniels Midland’s remarkable durability in recessions could be that grains still need to be processed and transported, regardless of the economic climate. There will always be a certain level of demand for Archer Daniels Midland’s products. From a dividend perspective, the payout looks relatively safe.
Valuation & Expected Total Returns
Based on the expected 2025 EPS of $4.04, ADM shares trade for a price-to-earnings ratio of 13.5. Archer–Daniels–Midland has been valued at a price-to-earnings multiple of 15.5 over the last decade. Our fair value P/E ratio is 14, indicating that the stock is undervalued.
An increasing valuation multiple could generate 1% annual returns for shareholders over the next five years. Future returns will also be derived from earnings growth and dividends. We expect Archer Daniels Midland to grow its future earnings by ~4% per year through 2030, and the stock currently offers a dividend yield of 3.7%.
In this case, total expected returns are 8.7% per year over the next five years, a reasonable risk-adjusted rate of return for Archer Daniels Midland stock.
Final Thoughts
Archer Daniels Midland has a long history of navigating challenging periods. It has continued to generate profits and reward shareholders with rising dividends.
The stock trades at a low valuation and offers a 3.7% dividend yield, accompanied by annual dividend increases. Archer Daniels Midland stock is a hold with expected returns below 10% per year.
The following articles contain stocks with very long dividend or corporate histories, ripe for selection for dividend growth investors:
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The High Yield Dividend Kings List is comprised of the 20 Dividend Kings with the highest current yields.
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The High Dividend Stocks List: stocks that appeal to investors interested in the highest yields of 5% or more.
The Monthly Dividend Stocks List: stocks that pay dividends every month, for 12 dividend payments per year.
The Dividend Champions List: stocks that have increased their dividends for 25+ consecutive years.Note: Not all Dividend Champions are Dividend Aristocrats because Dividend Aristocrats have additional requirements like being in The S&P 500.
The Dividend Contenders List: 10-24 consecutive years of dividend increases.
The Dividend Challengers List: 5-9 consecutive years of dividend increases.
The Best DRIP Stocks: The top 15 Dividend Aristocrats with no-fee dividend reinvestment plans.
The 2022 High ROIC Stocks List: The top 10 stocks with high returns on invested capital.
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The 2022 Low Beta Stocks List: The 100 stocks in the S&P 500 Index with the lowest beta.
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Updated on July 7th, 2025 by Felix Martinez
The Dividend Kings are a select group of stocks that have increased their dividends for at least 50 consecutive years. We believe the Dividend Kings are among the highest-quality dividend growth stocks to buy and hold for the long term.
With this in mind, we created a full list of all the Dividend Kings. You can download the full list, along with important financial metrics such as dividend yields and price-to-earnings ratios, by clicking the link below:
Archer Daniels Midland (ADM) is a recent addition to the Dividend Kings list as it just reached 50 consecutive years of dividend increases.
This article will provide an overview of the company’s business, its growth prospects, competitive advantages, and expected returns.
Business Overview
Archer Daniels Midland was founded in 1902 when George A. Archer and John W. Daniels began a linseed-crushing business. In 1923, Archer-Daniels-Midland acquired Midland Linseed Products Company, which created Archer-Daniels-Midland.
Today, it is a major player in the agricultural industry. Archer-Daniels-Midland operates in 160 countries and generates annual revenue above $85.5 billion.
The company produces a wide range of products and services designed to meet the growing demand for food, driven by rising populations.
Source: Investor Presentation
It operates four business segments: Origination, Oilseeds, Carbohydrate Solutions, and Nutrition. The Oilseeds segment is Archer Daniels Midland’s largest.
ADM reported Q1 2025 net earnings of $295 million ($0.61 per diluted share), down 57% from $686 million ($1.42 per share) in Q1 2024. Adjusted net earnings were $338 million ($0.70 per share), down 52% from $708 million ($1.46 per share). Revenues were not specified but implied to be stable with 3.8% organic growth noted elsewhere. Total segment operating profit decreased 38% to $747 million from $1,196 million, primarily due to $49 million in restructuring charges. Adjusted EBITDA was not detailed for Q1 alone, but it was aligned with expectations. Cash flows used in operations were $342 million, with adjusted operating cash flow before working capital at $439 million.
Trailing four-quarter average ROIC was 5.4% (adjusted 7.0%). Segment performance included Ag Services & Oilseeds (AS&O) at an operating profit of $412 million, down 52%. Ag Services declined 31% due to lower volumes and margins, while Crushing decreased 85% due to increased capacity and trade uncertainties. Refined Products also decreased 21%. Carbohydrate Solutions’ operating profit was $240 million, down 3%, with Starches & Sweeteners down 21% but Vantage Corn Processors up significantly. Nutrition operating profit rose 13% to $95 million, driven by Animal Nutrition (up 150% to $20 million) and Flavors in Human Nutrition. Corporate and other contributions totaled $96 million, a 21% decrease.
ADM reaffirmed its 2025 adjusted EPS guidance of $4.00–$4.75, with the expectation of a lower end due to market conditions. CEO Juan Luciano emphasized operational improvements, cost savings, and portfolio simplification, positioning ADM to navigate uncertainties. Strategic actions included network consolidation in AS&O and $45–$77 million in timing-related incentive adjustments across segments. Despite challenges, ADM’s focus on execution and capital discipline supports its outlook for sustained performance.
Growth Prospects
Acquisitions are a significant driver of ADM’s historical growth. The company has acquired multiple businesses over the past few decades to boost its growth.
Source: Investor Presentation
We believe that a growth rate of around 4.0% is feasible moving forward. The business is resilient to recessions, as people still need to eat even during an economic downturn.
On the other hand, Archer-Daniels-Midland does not profit from economic expansion, as the amount of food sold does not rise quickly during good times. Thus, a strong economy is not a significant tailwind for Archer-Daniels-Midland, unlike many other companies, which profit substantially from higher consumer spending.
Competitive Advantages & Recession Performance
Archer Daniels Midland has built significant competitive advantages over the years. It is the world’s largest processor of corn, which leads to economies of scale and increased efficiencies in production and distribution.
The company is a major industry player with ~380 crop procurement locations, 325 food and feed processing facilities, and 68 innovation centers.
At its innovation centers, the company conducts research and development to respond more effectively to changes in customer demand and improve processing efficiency. Archer Daniels Midland’s unparalleled global transportation network provides a significant competitive advantage.
The company’s global distribution system provides high margins and barriers to entry, allowing Archer Daniels Midland to remain highly profitable even during industry downturns.
Profits held up, even during the Great Recession. Earnings per share during the Great Recession are below:
2007 earnings-per-share of $2.38
2008 earnings-per-share of $2.84 (19% increase)
2009 earnings-per-share of $3.06 (7.7% increase)
2010 earnings-per-share of $3.06
Archer Daniels Midland’s earnings per share increased in 2008 and 2009 during the Great Recession. Very few companies can boast such a performance in one of the worst economic downturns in U.S. history.
The reason for Archer Daniels Midland’s remarkable durability in recessions could be that grains still need to be processed and transported, regardless of the economic climate. There will always be a certain level of demand for Archer Daniels Midland’s products. From a dividend perspective, the payout looks relatively safe.
Valuation & Expected Total Returns
Based on the expected 2025 EPS of $4.04, ADM shares trade for a price-to-earnings ratio of 13.5. Archer–Daniels–Midland has been valued at a price-to-earnings multiple of 15.5 over the last decade. Our fair value P/E ratio is 14, indicating that the stock is undervalued.
An increasing valuation multiple could generate 1% annual returns for shareholders over the next five years. Future returns will also be derived from earnings growth and dividends. We expect Archer Daniels Midland to grow its future earnings by ~4% per year through 2030, and the stock currently offers a dividend yield of 3.7%.
In this case, total expected returns are 8.7% per year over the next five years, a reasonable risk-adjusted rate of return for Archer Daniels Midland stock.
Final Thoughts
Archer Daniels Midland has a long history of navigating challenging periods. It has continued to generate profits and reward shareholders with rising dividends.
The stock trades at a low valuation and offers a 3.7% dividend yield, accompanied by annual dividend increases. Archer Daniels Midland stock is a hold with expected returns below 10% per year.
The following articles contain stocks with very long dividend or corporate histories, ripe for selection for dividend growth investors:
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