We recently published a list of Top 10 High Dividend Yielding Consumer Defensive Stocks To Buy. In this article, we are going to take a look at where Archer-Daniels-Midland Company (NYSE:ADM) stands against other top high dividend yielding consumer defensive stocks to buy.
Consumer defensive stocks tend to perform well in uncertain times because they sell essential items such as household products, healthcare items, and food and beverages, among others. Such companies also tend to have a strong pricing power which helps them to easily pass on increasing costs to consumers.
The US market continues to struggle due to concerns over tariffs, geopolitical issues, and politics. In such times, consumer defensive stocks offer a way to protect one’s portfolio from this uncertainty.
When such shares also offer a high dividend yield, it performs a killer combination, loved by defensive investors looking to park their money for reliable passive income. We therefore decided to come up with a list of the top 10 high-dividend-yielding consumer defensive stocks.
To come up with the list of top 10 high-dividend consumer defensive stocks, we only considered stocks from the consumer defensive sector with a market cap of at least $10 billion and a dividend yield of at least 4%.
A wheat field at sunset, showing the company’s commitment to agricultural commodities.
Archer-Daniels-Midland Company (NYSE:ADM)
Archer-Daniels-Midland Company (NYSE:ADM) processes, stores, procures, transports, and merchandises agricultural commodities, flavors, ingredients, and solutions. The company operates through Carbohydrate Solutions, Ag Services and Oilseeds, and Nutrition segments. It continues to draw investors’ attention by offering a dividend yield of 4.43%. As a consistent dividend payer, the company has demonstrated its commitment to shareholder returns with an increasing and uninterrupted dividend payment for 53 consecutive years.
Archer-Daniels-Midland Company (NYSE:ADM) announced its Q4 results last month, which were below analysts’ estimates. Operating profits fell 32% YoY and cash flows from operations also decreased by 30%. The poor earnings came as a result of sector-wide instability, not company-specific issues.
Based on the results, management expects 1st half of 2025 to be challenging with significantly reduced canola crush and soybean margin. According to ADM CFO Monish Patolawala, cost savings and efficiency improvements will help mitigate some of the market challenges the company is expected to face going forward. After losing a quarter of its share value in the last year, the stock is now at a level where people can buy a Dividend King with their eyes closed and come out on top.
Overall, ADM ranks 7th on our list of top high dividend yielding consumer defensive stocks to buy. While we acknowledge the potential of ADM as a leading investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is as promising as ADM but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
