ADM Dividend Commentary and Absolute Value Trade-off

24 days ago

"For example, the beginning of the year I bought I discussed ADM which was relatively cheap and the stock did okay from those lows. The dividend was closer to 5%, now it's 3%. The stock is a little bit higher. Had its peak here. However, maybe here it was at an absolute better with the dividend yield 5% inflation growth another 5%."

The speaker reviews an earlier investment in ADM, noting that while the stock performed reasonably well, its dividend yield dropped from 5% to 3% as the stock price increased. The commentary suggests that, despite this change, the absolute value, calculated on dividend yield plus inflation growth, may still offer an attractive risk/reward profile for value investors.

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