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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.
See Also: CEO of Integris gathered a team of senior investment managers who have $34.22 billion in combined owned and managed assets in the West Coast — here’s how to invest in their private credit fund that targets 12% annual interest rate.
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.