10 Undervalued Dividend Aristocrats to Buy According to Hedge Funds

5. Archer-Daniels-Midland Company (NYSE:ADM)

Dividend Yield as of December 23: 3.79%

Number of Hedge Fund Holders: 34

P/E Ratio: 14.18

Archer-Daniels-Midland Company (NYSE:ADM) is a global leader in the procurement, transportation, storage, and processing of agricultural commodities, with operations in several countries, including the US, Switzerland, Brazil, and the UK. Archer-Daniels-Midland Company (NYSE:ADM) handles agricultural raw materials like oilseeds, offers a wide range of food and animal feed products, and produces ingredients for different industries, such as food, energy, and chemicals. It also provides specialized products like proteins, natural flavors, and pet food.

Archer-Daniels-Midland Company (NYSE:ADM) reported a challenging third quarter in 2024, with net earnings of $18 million and adjusted net earnings of $530 million. Earnings per share were $0.04, while adjusted earnings per share came in at $1.09, both down from the previous year. A non-cash charge of $461 million related to its Wilmar equity investment impacted GAAP earnings. The company also experienced an 8% drop in revenue, totaling $20 billion for the quarter, missing analyst estimates by $1.57 billion.

Despite these setbacks, ADM’s cash flow remained strong, with operating cash flow reaching $2.5 billion year-to-date, up from $1.9 billion the previous year. ADM also remains committed to its long-standing tradition of dividend growth, with 51 consecutive years of increases and a current quarterly dividend of $0.50 per share.

As per Insider Monkey’s third-quarter database, 34 hedge funds were long Archer-Daniels-Midland Company (NYSE:ADM), compared to 35 funds in the last quarter.