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ADM'S BOARD OF DIRECTORS VOTES TO INCREASE COMMON STOCK DIVIDEND BY 26 PERCENT
Source: Archer Daniels Midland news release

Archer Daniels Midland Company (NYSE: ADM) today announced that, as a result of strong operating cash flows and expected improvements in its earnings for 2014, its Board of Directors has voted to raise the company's regular quarterly cash dividend from 19.0 cents per share to 24.0 cents per share, or 26 percent, on the company's common stock payable March 13, 2014, to stockholders of record at the close of business on Feb. 20, 2014.

"Our continued strong cash flow generation and our confidence in the future earnings power of our company allow us to significantly increase our quarterly dividend," said Patricia Woertz, ADM's chairman and CEO. "Historically, we have paid out approximately 20 to 25 percent of earnings; going forward we will aim for a range of 25 to 30 percent, thereby allowing shareholders to participate more directly in the earnings stream of the company."

The company also announced that it intends to buy back from its shareholders 18 million shares of its stock by the end of 2014 to fully mitigate the dilutive impact of equity units converted in 2011 and compensation and benefit plan issuances in 2013 and 2014. At current prices, this would represent about $725 million.

To the extent that ADM's credit metrics improve throughout the year and the company receives significant proceeds from asset sales, the company will consider further distributions to shareholders later in 2014 in the context of its capital allocation strategy.

Woertz also provided some detail on the company's 2014 business plans, noting that from the cash flows to be generated in 2014, it expects to invest about $1.4 billion in capital projects, with the majority of the growth capital invested outside the U.S., and will return about $1.4 billion to shareholders in the form of the higher dividends and the repurchase of 18 million shares.

"We will continue to take a balanced approach to capital allocation," Woertz said. "Our strong balance sheet and solid cash flow generation will allow for capital investments in growth projects with strong returns and return of capital to our shareholders and still leave us sufficient ability to take advantage of strategic opportunities that may arise in 2014. We are confident and enthusiastic about the opportunities ahead."


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