Published November 19th, 2018
We analyzed each Dividend Aristocrat by looking at their earnings, dividends, maximum draw down (MDD) and stock price performance during the 2007-2009 financial crisis.
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Dividend Aristocrats Archer-Daniels-Midland (ADM) is a producers of food and beverage ingredients, and other products made from oilseeds, corn, wheat, and other agricultural commodities. Archer-Daniels-Midland has a market capitalization of $26 billion (November 2018) and generates more than $60 billion of annual revenue.
Although ADM is not the most recession-resistant Dividend Aristocrat, the company has been able to increase dividend pay-outs for 43 consecutive years include the 2007-2010 period.
The company’s adjusted earnings-per-share trend during the Recession period (2007-2009) can be seen below:
- 2007 adjusted earnings-per-share of $2.38
- 2008 adjusted earnings-per-share of $2.84 (19% increase)
- 2009 adjusted earnings-per-share of $3.06 (7.7% increase)
- 2010 adjusted earnings-per-share of $3.06
Archer-Daniels-Midland’s adjusted earnings-per-share continued to rise through the Great Recession. This is because the company’s performance is much more reliant on commodity prices than economic activity.
Archer-Daniels-Midland (ADM) stock performance 2007-2009
The company’s share price declined noticeably during this time period, as shown below. Archer-Daniels-Midland’s stock fluctuated from a high of $48.18 to a low of $15.29 during calendar years 2007-2009. The ADM stock price from 2007-2009 can be seen below, including the 200-days moving average.
ADM Dividends 2007-2010
Archer-Daniels-Midlands dividend also increased during this recession, as shown in the bar chart below:
See also the overall performance of the dividend aristocrats during recession.
Other Sources of Dividend Investment Ideas
The Dividend Aristocrats list is not the only way to quickly screen for businesses that regularly pay rising dividends.
- The Dividend Kings List is even more exclusive than the Dividend Aristocrats. It is comprised of less than 20 businesses with 50+ years of consecutive dividend increases.
- The MoneyInvestExpert Defensive Aristocrats is a performance-based top-10 selection of the Dividend Aristocrats to outperform the market on the long-term.
- Portfolio lists like the Berkshire Hathaway Portfolio or Bill Gates’stock portfolio can be a source.
- For the European focused investors there is also the list of European Dividend Aristocrats.
- Dividend Champions are not necessarily members of the S&P 500 index, have increased their dividend for 25 or more consecutive years.
- 100+ years of dividend, the list of stocks that pay over 100 year of dividend can be an list of inspiration.
Next to selecting the right dividend stocks, important principles for successful long-term investing are Disciple, Diversification, Defensive & indeed Dividend. Read more about this in our free e-book.
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