The Andersons' 116th Consecutive Dividend: A Testament to Agribusiness Resilience and Shareholder Value

For decades, the agribusiness sector has been a battleground of volatility—swayed by weather patterns, commodity price swings, and global trade dynamics. Yet, one name has stood the test of time: The Andersons, Inc. (ANDE). On August 20, 2025, the company announced its 116th consecutive quarterly dividend, a milestone that underscores its unwavering commitment to shareholder returns and financial resilience. This achievement isn't just a number—it's a masterclass in how a diversified business model, disciplined capital management, and a conservative payout ratio can create long-term value in a cyclical industry.

A Legacy of Consistency in a Cyclical Sector

The Andersons has paid dividends for 28 years without interruption, surviving the 2008 financial crisis, the 2020 pandemic, and the inflationary pressures of the 2020s. Its latest quarterly payout of $0.195 per share (yielding 2.04% at $38.51) reflects a company that prioritizes stability. But what makes this consistency sustainable?

The answer lies in its 21% dividend payout ratio, a figure far lower than many agribusiness peers. This conservative approach ensures that even in downturns, The Andersons can maintain its dividend while reinvesting in growth. For context, a payout ratio above 80% often signals risk for cyclical stocks, but The Andersons' 21% provides a buffer against volatility.

Diversification as a Hedge Against Risk

The Andersons' strength isn't just in its balance sheet—it's in its business model. The company operates across four segments:
1. Agribusiness (grain trading and logistics),
2. Renewables (ethanol and renewable diesel),
3. Retail (hardware and pharmacy stores), and
4. Rail (logistics and infrastructure).

This diversification acts as a natural hedge. For example, while the Agribusiness segment faced stagnant markets in Q1 2025, the Renewables segment delivered $25 million in pretax income, driven by efficient ethanol operations. Meanwhile, the Retail segment remained resilient, benefiting from consistent consumer demand.

Financial Resilience in Action

The Andersons' balance sheet is a fortress. As of Q1 2025, it held $219 million in cash and maintained a debt-to-equity ratio of 1.38, well below its long-term target of 2.5x EBITDA. Its adjusted EBITDA of $57.3 million in Q1 2025 highlights strong operational cash flow, while a current ratio of 1.76 signals robust liquidity.

Moreover, the company's recent acquisition of The Andersons Marathon Holdings LLC—a full ownership stake in four ethanol plants—positions it to capitalize on the renewable energy boom. This move is expected to be immediately accretive to earnings, further bolstering its ability to sustain and grow dividends.

Why This Matters for Investors

The Andersons' 116th consecutive dividend isn't just a milestone—it's a signal. For income-focused investors, the 2.04% yield offers a compelling return in a low-interest-rate environment. For growth-oriented investors, the company's strategic investments in renewables and its disciplined capital allocation (e.g., a 21% payout ratio) suggest a business poised to outperform in both bull and bear markets.

Final Takeaway

The Andersons has outperformed the S&P 500 by 200% since 1996, a testament to its ability to compound value through both dividends and reinvestment. Its 116th consecutive payout isn't just about income—it's about trust. In a world where many companies cut dividends during downturns, The Andersons has proven that consistency is a competitive advantage.

For investors seeking a defensive, income-generating stock with a track record of navigating economic storms, The Andersons is a rare gem. With a low payout ratio, a diversified business model, and a strong balance sheet, this is the kind of company that turns long-term investors into lifelong partners.

Bottom line: The Andersons isn't just paying dividends—it's building a legacy. And for those with the patience to hold, the rewards are as enduring as the dividend itself.