Deere & Company (DE) DIvidends Date & History

Key Takeaways

• Current annual dividend of $6.48 per share translates to a 1.12% yield (TTM Trailing Twelve Months) based on a $570‑$580 stock price.
• Payout ratio sits near 34% of earnings, indicating ample room for future increases.
• Dividend has risen for five straight years, climbing from $1.47 to $1.62 per quarter (≈10% YoY).
• Free‑cash‑flow coverage exceeds 1.0×, reinforcing dividend sustainability.
• Yield trails sector peers such as AGCO (≈4.3%) but is comparable to Caterpillar (~1.8%) and higher than many industrial giants.

Dividend Overview

Deere & Company (DE) follows a quarterly dividend schedule. For fiscal 2024 the company paid $1.62 per share each quarter, totaling $6.48 annually. The current dividend yield is roughly 1.12% based on the latest market price near $575. Deere is generally viewed as a modest‑yield, dividend‑growth stock rather than a high‑income play. The board’s long‑standing policy targets a payout ratio below 50% to preserve capital for capital‑intensive equipment investments.

Dividend History and Growth

Deere has increased its dividend every year since 2019, marking a five‑year growth streak. Quarterly payouts rose from $1.47 in 2023 to $1.62 in 2025‑2026, a 10% increase. Annual dividends grew from $5.30 in 2022 to $6.48 in 2024, reflecting a compound annual growth rate (CAGR) of about 9‑10% over the last five years. The company has maintained quarterly consistency, rarely missing a payment date, and has a history of modest but reliable hikes.

Dividend Sustainability and Payout Ratio

Deere reported fiscal‑2024 earnings per share (EPS) of $18.50 and a payout ratio of 34% (dividend ÷ EPS). Free cash flow (FCF) reached $3.23 billion, providing roughly $15 of cash per share, well above the $6.48 annual dividend. This yields an FCF coverage of > 1.0×, underscoring strong cash‑generation capacity. Debt levels remain manageable relative to cash earnings, and the company’s balance sheet supports continued dividend payments even in cyclical downturns.

Dividend Compared to Industry Peers

Within the industrial machinery sector, Deere’s 1.12% yield sits below AGCO’s 4.37% and The Toro Company’s 2.18%, but is on par with Caterpillar’s 1.80% and higher than Cummins (≈1.34%). While the yield is modest, Deere’s consistent growth and lower payout ratio provide a more conservative risk profile compared with higher‑yielding peers that may be trading closer to their payout limits.

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Is This Stock Attractive for Dividend Investors?

Deere appeals to investors seeking a blend of modest yield and reliable growth. Income‑oriented investors who prioritize cash‑flow safety may find the 34% payout ratio and strong FCF coverage reassuring. Dividend‑growth investors can appreciate the five‑year increase streak and the company’s commitment to incremental hikes. Conversely, yield‑hunters looking for high percentages may look elsewhere, as Deere’s yield lags many pure‑income stocks. Long‑term, financially disciplined investors who value stability and the ability to reinvest dividends for capital appreciation may consider Deere a fitting addition to a diversified dividend portfolio.

Disclaimer

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