Accounting issues cloud its outlook

Article Excerpt

ARCHER DANIELS MIDLAND CO. $50 is a hold. The company (New York symbol ADM; High-Growth Payer Portfolio, Manufacturing sector; Shares outstanding: 478.1 million; Market cap: $23.9 billion; Dividend yield: 4.0%; Dividend Sustainability Rating: Above Average; www.adm.com) processes corn, wheat, soybeans, flax seed and other crops into a variety of food ingredients such as flour, oils and sweeteners. With the February 2024 payment, Archer raised your quarterly dividend by 11.1%, to $0.50 a share from $0.45. The annual rate of $2.00 a share yields 4.0%. Archer will now restate its results for 2023, as well as the first two quarters of 2024. That’s due to additional accounting errors it discovered related to the way it handles sales between business units within the company. Archer Daniels Midland is a hold. hold…