5 Cheap Dividend Stocks with Payout Ratio Under 40%

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

Number of Hedge Fund Holders: 41
Dividend Yield: 2.44%

Payout Ratio: 35.5%

Archer-Daniels-Midland Company (NYSE: ADM), a food processing company, is next on our list of cheap dividend stocks with payout ratio under 40%. The multinational company is based in Chicago, and ranks 4th on our list.

Jefferies began coverage of Archer-Daniels-Midland Company (NYSE: ADM) shares this July with a Hold rating and a $55 price target.

In the second quarter of 2021, Archer-Daniels-Midland Company (NYSE: ADM) had an EPS of $1.33, beating estimates by $0.30. The company’s revenue was $22.93 billion, up 40.81% year over year and beating estimates by $4.59 billion. Archer-Daniels-Midland Company (NYSE: ADM) has gained 5.71% in the past 6 months and 21.46% year to date.

By the end of the second quarter of 2021, 41 hedge funds out of the 873 tracked by Insider Monkey held stakes in Archer-Daniels-Midland Company (NYSE: ADM) worth roughly $837 million. This is compared to 34 hedge funds in the previous quarter with a total stake value of approximately $696 million.