June 01, 2025 a 11:31 am
Dividend Analysis - Deere & Company
Deere & Company stands as a robust dividend-paying entity, showcasing a respectable dividend yield combined with a prolonged history of consistent payments over the decades. With a low payout ratio, the company's dividend strategy reflects prudent financial management and offers potential for future distributions.
📊 Overview
Deere & Company operates predominantly in the Industrials sector, delivering agricultural and construction machinery at a global scale.
| Metric | Details |
|---|---|
| Sector | Industrials |
| Dividend yield | 1.25 % |
| Current dividend per share | $5.82 USD |
| Dividend history | 54 years |
| Last cut or suspension | None |
🗣️ Dividend History
Deere & Company boasts a consistent dividend record over 54 years without cuts, a testament to its fiscal discipline and commitment to shareholders.
| Year | Dividend Per Share (USD) |
|---|---|
| 2025 | 3.24 |
| 2024 | 6.03 |
| 2023 | 5.32 |
| 2022 | 4.51 |
| 2021 | 3.90 |
📈 Dividend Growth
Long-term investors may find Deere & Company's dividend growth an appealing aspect, especially with moderate growth rates reflecting steady stability.
| Time | Growth |
|---|---|
| 3 years | 15.63 % |
| 5 years | 14.68 % |
The average dividend growth is 14.68 % over 5 years. This shows moderate but steady dividend growth.
⚖️ Payout Ratio
Deere & Company's low payout ratios emphasize a sustainable dividend with room for future increments while ensuring financial flexibility.
| Key figure | Ratio |
|---|---|
| EPS-based | 25.40 % |
| Free cash flow-based | 37.31 % |
With an EPS-based payout of 25.40 % and FCF-based at 37.31 %, Deere displays strong earnings retention, providing a buffer for potential economic fluctuations.
💰 Cashflow & Capital Efficiency
Analyzing cash flow statements reveals vital aspects of a company's operational health and its ability to finance dividends or re-invest strategically.
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Free Cash Flow Yield | 0.76 % | 3.83 % | 3.89 % |
| Earnings Yield | 5.92 % | 9.46 % | 6.24 % |
| CAPEX to Operating Cash Flow | 80.61 % | 52.02 % | 52.02 % |
| Stock-based Compensation to Revenue | 0.17 % | 0.22 % | 0.41 % |
| Free Cash Flow / Operating Cash Flow Ratio | 19.39 % | 47.98 % | 47.98 % |
The stability exhibited in Deere's cash flow and capital allocation highlights prudent financial management, with healthy cash generation supporting dividend potential.
📉 Balance Sheet & Leverage Analysis
Insights from balance sheet ratios provide a perspective on Deere's financial structure and its ability to withstand fiscal challenges.
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Debt-to-Equity | 2.58 | 2.92 | 2.87 |
| Debt-to-Assets | 57.98 % | 61.19 % | 60.99 % |
| Debt-to-Capital | 72.04 % | 74.51 % | 74.14 % |
| Net Debt to EBITDA | 3.92 | 3.22 | 3.96 |
| Current Ratio | 2.02 | 1.96 | 2.13 |
| Quick Ratio | 1.75 | 1.75 | 1.94 |
| Financial Leverage | 4.44 | 4.78 | 4.70 |
Deere's financial assessment reveals moderate leverage with a solid short-term liquidity stance, ensuring its capacity to service debts efficiently.
✅ Fundamental Strength & Profitability
Evaluating profitability metrics unveils vital dynamics underlying Deere's financial health, offering foresight into its earning potential and market position.
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Return on Equity | 35.19 % | 46.67 % | 31.09 % |
| Return on Assets | 7.92 % | 9.77 % | 6.62 % |
| Net Margin | 13.91 % | 16.87 % | 14.05 % |
| EBIT Margin | 19.87 % | 25.68 % | 24.85 % |
| EBITDA Margin | 23.56 % | 29.01 % | 29.04 % |
| Gross Margin | 30.67 % | 37.02 % | 38.59 % |
| R&D to Revenue | 3.73 % | 3.61 % | 4.53 % |
These profitability indicators reflect Deere’s strong competitive position through effective cost management and strategic resource allocation.
📷 Price Development
🔍 Dividend Scoring System
| Criteria | Score | Visual |
|---|---|---|
| Dividend yield | 3 | |
| Dividend Stability | 5 | |
| Dividend growth | 4 | |
| Payout ratio | 5 | |
| Financial stability | 4 | |
| Dividend continuity | 5 | |
| Cashflow Coverage | 4 | |
| Balance Sheet Quality | 4 |
Score: 34/40
👔 Rating
Deere & Company presents itself as a reliably industrious interest for dividend-focused investors. Its historical resilience and prudent payout ratios suggest that maintaining dividend payouts is well supported by its financial framework, reinforcing its appeal in a diversified portfolio.