5 Undervalued Dividend Aristocrats To Buy Now

In this article, we discuss 5 undervalued dividend aristocrats to buy now. If you want to read our detailed analysis of dividend and value investing, go directly to read 11 Undervalued Dividend Aristocrats to Buy Now.

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

P/E Ratio as of January 12: 12.38

Archer-Daniels-Midland Company (NYSE:ADM) is a Chicago-based food processing company that produces a wide range of food products. In Q3 2022, the company reported revenue of $24.6 billion, which showed a 21.3% growth from the same period last year. At the end of September, it had over $1 billion in cash and cash equivalents. The company is among the undervalued dividend aristocrats with a P/E ratio of 12.38.

In January, Stifel raised its price target on Archer-Daniels-Midland Company (NYSE:ADM) to $116 with a Buy rating on the shares ahead of the company’s Q4 earnings.

Archer-Daniels-Midland Company (NYSE:ADM) currently pays a quarterly dividend of $0.40 per share and has a dividend yield of 1.83%, as of January 12. The company has been raising its dividends consistently for the past 49 years.

As of the close of Q3 2022, 37 hedge funds tracked by Insider Monkey reported owning stakes in Archer-Daniels-Midland Company (NYSE:ADM), compared with 42 in the previous quarter. These stakes are valued collectively at nearly $600 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.”