June 17, 2026 a 07:46 am
🗣️ Dividend Analysis - Deere & Company
Deere & Company, a leader in the agricultural machinery sector, showcases a steady dividend history with a special emphasis on long-term growth. Currently, the dividend yield stands at 1.11%, and the company has consistently increased dividends for over five decades, reflecting strong financial commitment to shareholders. With a modest payout ratio, Deere demonstrates prudent capital management aligning profitability and shareholder returns.
📊 Overview
Deere & Company, operating in the Industrial sector, presents a cautious yet steadfast approach to dividend payouts, providing investors with consistent return opportunities.
| Metric | Value |
|---|---|
| Sector | Industrial |
| Dividend Yield | 1.11% |
| Current Dividend per Share | 6.35 USD |
| Dividend History | 55 years |
| Last Cut or Suspension | None |
📈 Dividend History
Deere & Company's dividend history is a testament to its long-term commitment and resilience in shareholder returns. Consistent dividends over decades underscore financial strength.
| Year | Dividend per Share (USD) |
|---|---|
| 2026 | 3.24 |
| 2025 | 6.48 |
| 2024 | 6.03 |
| 2023 | 5.32 |
| 2022 | 4.51 |
📉 Dividend Growth
The dividend growth at Deere & Company highlights a strategic increment over the years, reinforcing its focus on increasing shareholder value sustainably.
| Time | Growth |
|---|---|
| 3 years | 12.84% |
| 5 years | 16.34% |
The average dividend growth is 16.34% over 5 years, showing moderate but steady dividend growth.
✅ Payout Ratio
The payout ratio illustrates the proportion of earnings and cash flows distributed as dividends, ensuring a disciplined approach to dividend sustainability.
| Key Figure | Ratio |
|---|---|
| EPS-based | 35.85% |
| Free cash flow-based | 45.49% |
The EPS payout ratio of 35.85% and FCF payout ratio of 45.49% reflect a balanced proportion of earnings returned to investors, ensuring room for growth and stability.
📈 Cashflow & Capital Efficiency
Deere's cashflow analysis provides insights into liquidity and capital management effectiveness, essential for maintaining dividend commitments and financial health.
| Year | 2025 | 2024 | 2023 |
|---|---|---|---|
| Free Cash Flow Yield | 2.58% | 3.89% | 3.83% |
| Earnings Yield | 4.02% | 6.24% | 9.46% |
| CAPEX to Operating Cash Flow | 56.68% | 52.02% | 52.02% |
| Stock-based Compensation to Revenue | 0.34% | 0.41% | 0.22% |
| Free Cash Flow / Operating Cash Flow Ratio | 43.32% | 47.98% | 47.98% |
The stability and efficiency in capital usage demonstrate Deere's capability to reinvest for growth and maintain a strong dividend policy.
🔍 Balance Sheet & Leverage Analysis
Analyzing Deere's leverage and balance sheet strength aids in understanding its ability to fulfill long-term obligations and sustain its dividend policy.
| Year | 2025 | 2024 | 2023 |
|---|---|---|---|
| Debt-to-Equity | 2.46 | 2.87 | 2.92 |
| Debt-to-Assets | 0.60 | 0.61 | 0.61 |
| Debt-to-Capital | 0.71 | 0.74 | 0.75 |
| Net Debt to EBITDA | 5.18 | 3.96 | 3.22 |
| Current Ratio | 2.31 | 2.13 | 1.96 |
| Quick Ratio | 2.08 | 1.94 | 1.75 |
| Financial Leverage | 4.08 | 4.70 | 4.78 |
Deere's stable financial leverage and coverage ratios illustrate a solid foundation to manage liabilities and sustain dividends without compromising on growth.
📊 Fundamental Strength & Profitability
Fundamentals of Deere depict its efficiency and profitability, capturing value delivered to shareholders through effective management and operations.
| Year | 2025 | 2024 | 2023 |
|---|---|---|---|
| Return on Equity | 19.37% | 31.09% | 46.67% |
| Return on Assets | 4.74% | 6.62% | 9.77% |
| Margins: Net | 11.25% | 14.05% | 16.87% |
| EBIT | 21.11% | 24.85% | 25.68% |
| EBITDA | 26.10% | 29.04% | 29.01% |
| Gross | 36.48% | 38.59% | 37.02% |
| R&D to Revenue | 5.07% | 4.53% | 3.61% |
Exceptional profitability and strong returns on equity and assets signify Deere's robust market position, delivering consistent shareholder value.
📈 Price Development
Stock price performance provides insight into market perception and future growth expectations for Deere & Company.
✅ Dividend Scoring System
| Criteria | Score | Score Bar |
|---|---|---|
| Dividend Yield | 3 | |
| Dividend Stability | 5 | |
| Dividend Growth | 4 | |
| Payout Ratio | 4 | |
| Financial Stability | 5 | |
| Dividend Continuity | 5 | |
| Cashflow Coverage | 4 | |
| Balance Sheet Quality | 4 |
Total Dividend Score: 34/40
📊 Rating
Deere & Company's dividend performance is robust, reflecting financial prudence and a strong commitment to shareholders. This positioning reinforces Deere as a desirable choice for dividend-focused portfolios.
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