5 High Free Cash Flow Dividend Stocks

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

Free Cash Flow Yield: 11.6%
Dividend Yield as of August 1: 1.93%

Archer-Daniels-Midland Company (NYSE:ADM) is an American food processing company that offers sustainable human and animal nutrition.

At the end of Q2 2022, Archer-Daniels-Midland Company (NYSE:ADM) reported $906 million in cash and cash equivalents, up from $869 million in the same period last year. The company’s operating cash flow came in at $531 million and free cash flow stood at $248 million. It paid over $453 million in dividends during the quarter, compared with $417 million worth of payouts in the prior-year quarter. The company’s free cash flow yield came in at 11.6%.

Archer-Daniels-Midland Company (NYSE:ADM) pays a quarterly dividend of $0.40 per share. The company has been making dividend payments for the past 90 years while maintaining a 48-year track record of consistent dividend growth. The dividends are well covered with a payout ratio of 24.2%. As of August 1, the stock’s dividend yield stood at 1.93%.

As the demand for renewable diesel has increased, Baird raised its price target on Archer-Daniels-Midland Company (NYSE:ADM) in July to $94, with an Outperform rating on the shares.

According to Insider Monkey’s Q1 2022 database, 42 hedge funds owned stakes in Archer-Daniels-Midland Company (NYSE:ADM), with a collective value of $625.6 million. In the previous quarter, 41 hedge funds owned stakes in the company, worth $481.2 million.

Diamond Hill Capital mentioned Archer-Daniels-Midland Company (NYSE:ADM) in its Q1 2022 investor letter. Here is what the firm has to say:

“ADM is a leading agricultural processor that also operates a global nutrition business focused on the development of ingredients and flavors for food and beverages, supplements and more. The company’s recent operating results have benefited (unfortunately) from the war in Ukraine as grain prices and agricultural markets globally experienced strong price increases. ADM is positioned well to benefit from the volatility due to its stable North American agricultural base.”