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    Is Andersons’ Dividend Hike And 2028 EPS Goal Altering The Investment Case For ANDE?

    Simply Wall St·12/25/2025 15:18:43
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    • In December 2025, The Andersons, Inc. increased its first-quarter 2026 cash dividend to US$0.20 per share, payable on January 23, 2026 to shareholders of record on January 2, 2026, up from US$0.195 in the prior quarter.
    • The simultaneous dividend raise and long-term plan targeting a US$7.00 run-rate earnings per share exiting 2028 highlight management’s confidence in Andersons’ balance sheet resilience and earnings potential.
    • We’ll now examine how Andersons’ higher dividend and ambitious 2028 earnings target reshape the company’s investment narrative and risk profile.

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    Andersons Investment Narrative Recap

    To own Andersons, you need to believe in its ability to turn a volatile, commodity-heavy agribusiness into steadier earnings through renewables, higher value processing, and disciplined capital use. The small dividend increase and ambitious 2028 EPS target signal confidence but do not materially change the near term catalyst, which still centers on improving profitability in renewables, nor the key risk around earnings volatility from grain and ethanol exposure.

    The most relevant update here is Andersons’ new long term plan targeting a US$7.00 run rate EPS exiting 2028, from US$2.56 for the trailing twelve months to September 30, 2025. That long range earnings goal will likely hinge on the same drivers investors are already watching most closely, such as the ethanol plant build out, carbon and tax credit benefits, and execution on value added grain and nutrient processing projects.

    Yet while management’s targets are ambitious, investors should be aware of how overexposure to ethanol and grain trading could...

    Read the full narrative on Andersons (it's free!)

    Andersons' narrative projects $13.3 billion revenue and $186.7 million earnings by 2028. This requires 4.8% yearly revenue growth and a $106.1 million earnings increase from $80.6 million today.

    Uncover how Andersons' forecasts yield a $50.00 fair value, a 7% downside to its current price.

    Exploring Other Perspectives

    ANDE 1-Year Stock Price Chart
    ANDE 1-Year Stock Price Chart

    Four fair value estimates from the Simply Wall St Community span roughly US$18.09 to US$59.24, underlining how far apart individual views can be. Set against Andersons’ heavy dependence on commodity sensitive ethanol and grain trading, these differing opinions invite you to consider how each risk and catalyst could shape the business over time.

    Explore 4 other fair value estimates on Andersons - why the stock might be worth as much as 10% more than the current price!

    Build Your Own Andersons Narrative

    Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.