July 29, 2025 a 12:46 pm
📊 Dividend Analysis - Deere & Company
Deere & Company, known for its robust financial foundations and agricultural machinery, presents a resilient dividend track record. Despite a relatively modest dividend yield, the company shows a solid dividend history with consistent payments over the last 54 years. This stable performance is indicative of strong cash flow management and strategic capital allocation. Investors may find the steady growth in dividends appealing for long-term investment.
🗣️ Overview
Deere & Company operates within the capital goods sector and showcases a consistent dividend yield of 1.24%. With a current dividend per share of 5.82 USD and a remarkable 54-year history of uninterrupted dividends, the company stands out for its commitment to returning value to shareholders. The absence of any recent dividend cut or suspension further underscores its fiscal stability.
| Detail | Value |
|---|---|
| Sector | Capital Goods |
| Dividend yield | 1.24 % |
| Current dividend per share | 5.82 USD |
| Dividend history | 54 years |
| Last cut or suspension | None |
📈 Dividend History
Deere & Company's commitment to its shareholders is evident in its strong dividend history. This history is crucial as it indicates the company's ability to generate cash flow consistently and its dedication to distributing profits to shareholders.
| Year | Dividend per Share (USD) |
|---|---|
| 2025 | 3.24 |
| 2024 | 6.03 |
| 2023 | 5.32 |
| 2022 | 4.51 |
| 2021 | 3.90 |
📈 Dividend Growth
Analyzing the dividend growth reveals moderate but steady increases over time. This growth is essential for maintaining purchasing power and providing increased returns.
| 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
Payout ratios are an essential measure of the sustainability of a company's dividend payments. Deere & Company maintains responsible payout ratios, reflecting its ability to reinvest in the business while rewarding shareholders.
| Key figure | Ratio |
|---|---|
| EPS-based | 27.89 % |
| Free cash flow-based | 36.36 % |
The EPS payout ratio of 27.89% and the FCF payout ratio of 36.36% suggest that the dividend payments are well-covered and sustainable.
📊 Cashflow & Capital Efficiency
Strong cash flow and efficient capital allocation are pivotal in assessing a company's operational health and ability to maintain dividend payments.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Free Cash Flow Yield | 3.89 % | 3.83 % | 0.76 % |
| Earnings Yield | 6.24 % | 9.46 % | 5.92 % |
| CAPEX / Operating Cash Flow | 52.02 % | 52.02 % | 80.61 % |
| Stock-based Compensation / Revenue | 0.41 % | 0.22 % | 0.17 % |
| Free Cash Flow / Operating Cash Flow | 47.98 % | 47.98 % | 19.39 % |
The stability of free cash flow and capital efficiency supports a strong foundation for sustaining future dividend payments.
📊 Balance Sheet & Leverage Analysis
Deere & Company's balance sheet analysis reveals crucial insights into its financial stability, liquidity, and debt management strategy.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Debt-to-Equity | 2.87 | 2.92 | 2.58 |
| Debt-to-Assets | 61.00 % | 61.19 % | 57.98 % |
| Debt-to-Capital | 74.14 % | 74.51 % | 72.04 % |
| Net Debt to EBITDA | 3.96 | 3.22 | 3.92 |
| Current Ratio | 2.13 | 1.96 | 2.02 |
| Quick Ratio | 1.94 | 1.75 | 1.75 |
| Financial Leverage | 4.70 | 4.78 | 4.44 |
The metrics indicate a sound financial structure capable of weathering economic fluctuations while maintaining growth potential.
📈 Fundamental Strength & Profitability
The company's fundamentals paint a picture of a profitable and well-managed operation with solid returns on equity and assets.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Return on Equity | 31.09 % | 46.67 % | 35.19 % |
| Return on Assets | 6.62 % | 9.77 % | 7.92 % |
| Net Margin | 14.05 % | 16.87 % | 13.91 % |
| EBIT Margin | 24.85 % | 25.68 % | 19.87 % |
| EBITDA Margin | 29.04 % | 29.01 % | 23.56 % |
| Gross Margin | 38.59 % | 37.02 % | 30.67 % |
| R&D / Revenue | 5.13 % | 3.61 % | 3.73 % |
These strong profitability indicators suggest that Deere & Company utilizes its resources effectively, offering competitive margins and returns.
📉 Price Development
✅ Dividend Scoring System
| Category | Score | Indicator |
|---|---|---|
| Dividend yield | 3 | |
| Dividend Stability | 5 | |
| Dividend growth | 4 | |
| Payout ratio | 4 | |
| Financial stability | 4 | |
| Dividend continuity | 5 | |
| Cashflow Coverage | 4 | |
| Balance Sheet Quality | 4 |
Score: 33/40
🗣️ Rating
Deere & Company exhibits a robust dividend policy supported by stable financial metrics and a long history of consistent dividend payouts. Given its moderate dividend yield, solid growth prospects, and prudent financial management, the company merits a favorable rating. It is suitable for investors seeking a reliable income stock with a potential for stable capital appreciation over time.