Deere & Company (DE) DIvidends Date & History

Key Takeaways

• Deere & Company (DE) pays a quarterly dividend of $1.62 per share, translating to an annualized payout of $6.48 per share and a dividend yield of approximately 1.1%.
• The company has raised its dividend eight times in the past five years, more than doubling the quarterly payout from $0.76 to $1.62 per share since 2020.
• With a payout ratio of roughly 35% of trailing earnings and approximately 24% of free cash flow, the dividend remains well-covered and sustainable.
• Deere's dividend yield edges above the farm equipment industry average, and its payout ratio exceeds the industry norm, signaling a stronger commitment to shareholder returns.
• The company complements its dividend with aggressive share repurchases, returning 81% of cash flow from equipment operations to shareholders in fiscal 2024.

Dividend Overview

Deere & Company (NYSE: DE), the world's largest manufacturer of agricultural and construction equipment, maintains a consistent quarterly dividend policy. The company currently pays $1.62 per share each quarter, which sums to an annual dividend of $6.48 per share. Based on recent trading levels, the dividend yield stands at approximately 1.1%, placing it modestly above the average for the manufacturing farm equipment industry.

Deere is best characterized as a dividend growth stock rather than a high-yield play. While the current yield may appear modest compared to traditional income-oriented sectors such as utilities or real estate, the company's trajectory of rapid payout increases over the past several years distinguishes it from slower-moving dividend payers. Dividends are distributed quarterly, with the most recent ex-dividend date on June 30, 2026, and the corresponding payment date on August 10, 2026.

Dividend History and Growth

Deere's dividend history reflects both resilience and an accelerating return of capital to shareholders. After maintaining its dividend flat during the 2020 pandemic-induced uncertainty, the company resumed hikes aggressively. Since then, Deere has raised its dividend eight times in five years, including two increases in each of fiscal 2023 and fiscal 2024. The quarterly payout has more than doubled, rising from $0.76 per share in early 2020 to $1.62 per share today. The five-year compound annual dividend growth rate stands at roughly 16% to 18%, an impressive pace for a large-cap industrial company.

Looking further back, Deere has paid dividends consistently for decades, and TipRanks data indicates dividend growth stretching over 17 years since 2009, with only brief pauses during severe economic downturns. The company's most recent increase was the 10.2% raise announced in late 2024, lifting the quarterly dividend from $1.47 to $1.62. This pattern underscores management's confidence in long-term cash generation even amid softening demand in agricultural and construction end markets.

Dividend Sustainability and Payout Ratio

Deere's dividend appears firmly sustainable based on current financial metrics. The trailing payout ratio stands at approximately 35% to 37% of earnings, meaning the company retains nearly two-thirds of its profits for reinvestment, debt reduction, and other corporate purposes. Even more conservatively, the dividend consumes only about 24% of free cash flow, providing a wide margin of safety.

For fiscal 2025, Deere guided net income to a range of $4.75 billion to $5.25 billion, with the midpoint representing a roughly 30% year-over-year decline driven by softer equipment demand. Cash flow from equipment operations was projected at $4.5 billion to $5.5 billion, against capital expenditures of approximately $1.4 billion. This still leaves ample free cash flow — estimated in the range of $3.1 billion to $4.1 billion — to cover annual dividend obligations of roughly $1.7 billion comfortably. One area of caution is Deere's debt-to-capital ratio, which at roughly 0.73 is among the highest in its peer group, though the company's robust cash generation mitigates near-term balance sheet concerns.

Dividend Compared to Industry Peers

Within the farm and construction equipment manufacturing space, Deere holds a competitive dividend profile. Its yield of approximately 1.1% to 1.4% (depending on share price fluctuations) sits above the industry average of roughly 1.1% to 1.2%. Key competitors include Caterpillar (CAT), which typically offers a comparable or slightly higher yield, CNH Industrial (CNH), and AGCO Corporation (AGCO). Among these peers, Deere's payout ratio of roughly 35% outpaces the industry average payout ratio near 25%, reflecting a deliberate strategy of returning a higher share of earnings directly to shareholders. Deere's five-year dividend growth rate also meaningfully exceeds the sector median, reinforcing its reputation as a dividend growth leader rather than a pure income vehicle. When combined with an active share buyback program, Deere's total shareholder return strategy ranks among the most aggressive in the industrial sector.

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Is This Stock Attractive for Dividend Investors?

Deere & Company may appeal primarily to dividend growth investors and long-term total-return-oriented investors who prioritize consistent payout increases over high current income. With a yield of roughly 1.1%, the stock is unlikely to satisfy investors seeking immediate high income, such as retirees relying on dividends for living expenses. However, the combination of a low payout ratio, robust free cash flow coverage, and a demonstrated commitment to aggressive dividend hikes makes DE an intriguing candidate for those building a portfolio of compounding dividend growers.

The stock also suits investors comfortable with cyclical industrials, as Deere's earnings and dividend growth trajectory are tied to agricultural commodity cycles, construction spending, and global macroeconomic conditions. While the current demand environment presents near-term headwinds, the company's strong balance sheet, shareholder-return discipline, and market leadership position provide a solid foundation. Conservative income investors may want to monitor the debt-to-capital level, while growth-focused dividend investors may find the five-year dividend growth trajectory compelling.

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