This Dividend King (ADM) Puts Food On Your Table – It Could Also Put Money In Your Pocket

During an episode of the hit TV show "Blue Bloods," one of the main characters quipped, "Sometimes the bluebird of happiness is staring you right in the face, but you just don't realize it." This advice could apply to your search for a good dividend stock for passive income. You probably have food on your table from agricultural giant Archer Daniels Midland, but did you know it was also a dividend king?

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Archer Daniels Midland (ADM) epitomizes a global agricultural operation. This Illinois-based company provides staple products that are key components in the food industry, which include:

·      Corn and corn derivatives (e.g., high fructose corn syrup, dextrose, glucose)

·      Chocolate

·      Ethanol

·      Vegetable oil

·      Biodiesel

·      Wheat flour

You (and most people you know) use many ADM products every day, either directly or indirectly, as ingredients in consumer products like sodas and sweeteners. Archer is also actively involved in supplying base products used for pet food. Archer's massive global footprint helps explain why 34 funds hold its stock (according to Insider Monkey). Benzinga estimates the company's market cap at $24.17 billion.

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That does not, however, mean that Archer is bulletproof. Archer's Q3 2024 earnings were underwhelming, mainly because its $19.94 billion in revenue was off by 8% from the previous year and fell about $1.5 billion short of the consensus analyst expectations. Despite that downturn, the company also reported an increase in cash flow, which grew from $1.9 billion for Q3 2023 to $2.5 billion for Q3 2024.

It's also important to note that Archer has been incredibly resilient when it comes to dividends. Public filings show that the company has increased its dividend for 51 consecutive years, making it a certified Dividend King. Benzinga's stock ticker shows Archer shares are currently trading at $50.50 and paying a dividend of 3.99%, which works out to $2.01 per share.

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Archer's strong cash flow and large market share also impress the analysts. Benzinga's survey of 21 analysts shows a consensus price expectation of $74 for Archer Daniels Midland, although the most recent analyst ratings from December are a little bit more bearish. Those expectations, provided by BMO Capital, Citigroup, and Barclays, have a consensus price target of $54.

That still leaves some moderate upside from Archer's current price, but this stock's solid dividend history makes it a stronger play for passive income investors than those looking for major share growth. With that said, if Archer posts strong Q4 2024 earnings and backs that up with a strong Q1 2025, the potential exists for some strong share growth. Combine that with the dividend, and you've got a strong candidate to add to your portfolio.

Wondering if your investments can get you to a $5,000,000 nest egg? Speak to a financial advisor today. SmartAsset’s free tool matches you up with up to three vetted financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. 

You Can Profit From Real Estate Without Being A Landlord

Real estate is a great way to diversify your portfolio and earn high returns, but it can also be a big hassle. Luckily, there are other ways to tap into the power of real estate without owning property. Arrived Home's Private Credit Fund’s has historically paid an annualized dividend yield of 8.1%*, which provides access to a pool of short-term loans backed by residential real estate. The best part? Unlike other private credit funds, this one has a minimum investment of only $100. 

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