Deere & Company (DE) DIvidends Date & History

Key Takeaways

• Deere & Company pays a quarterly dividend of $1.62 per share, totaling $6.48 annually.
• The current dividend yield stands at approximately 1.06%.
• The payout ratio is low at around 36.7%, supporting sustainability.
• Deere has raised its dividend for 6 consecutive years.
• Dividends are well-covered by earnings and free cash flow.
• The stock offers modest income with growth potential for long-term investors.

Dividend Overview

Deere & Company operates as a leading manufacturer of agricultural, construction, and forestry equipment. The company follows a policy of returning capital to shareholders through regular dividend payments. It distributes dividends quarterly, with the most recent payment of $1.62 per share made in August 2026. At current share prices, the dividend yield is approximately 1.06%. This profile positions Deere & Company as a dividend growth stock rather than a high-yield name, appealing to investors seeking modest income alongside potential capital appreciation in the industrials sector.

Dividend History and Growth

Deere & Company maintains a long track record of dividend payments. The annual dividend has grown steadily over time, rising from $3.04 in fiscal 2020 to $6.48 currently. Over the past 12 months, the average annual growth rate reached 4.85%, while longer-term averages show stronger expansion, including 11.22% over three years and 15.30% over five years. The company has increased its dividend for six consecutive years, reflecting a commitment to consistent shareholder returns despite fluctuations in the agricultural equipment market.

Dividend Sustainability and Payout Ratio

The dividend appears sustainable given Deere & Company's conservative payout ratio of approximately 36.7%. This level indicates that less than 40% of earnings are distributed as dividends, leaving substantial room for reinvestment and buffer against earnings volatility. Strong free cash flow generation and a solid balance sheet further support ongoing payments. The company’s financial stability in the industrials sector reduces the risk of dividend cuts, even during industry downturns.

Dividend Compared to Industry Peers

Within the industrials and agricultural machinery sector, Deere & Company’s yield of about 1.06% sits below the sector average of roughly 1.46%. Peer AGCO Corp reports a higher yield near 1.18%. Deere’s lower yield is offset by its stronger dividend growth history and lower payout ratio compared to some peers, offering a more conservative approach to shareholder returns.

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Is This Stock Attractive for Dividend Investors?

Deere & Company may suit dividend growth investors who prioritize consistent increases over high current yields. Its low payout ratio and history of annual raises provide a foundation for future growth, making it potentially appealing for long-term investors focused on compounding returns. Income-oriented investors seeking higher yields might find the modest 1.06% less attractive compared to other options. The stock’s performance ties closely to agricultural cycles, which could introduce volatility. Conservative investors valuing financial stability and a track record of payments may view it favorably within a diversified portfolio, though individual circumstances vary.

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