The Deere & Company (NYSE: DE) is the latest of the industrial giants to raise its dividend. This morning, the machinery and equipment giant announced an increase on its quarterly payout by about 17%. The new dividend is $0.35 per quarter, up from $0.30 per quarter before. This move will generate a current dividend of roughly 1.85%.
It was noted that Deere has increased its quarterly dividend on eight separate occasions Since early 2004 including today’s announcement. The dividend is payable February 1, 2011 to stockholders of record on December 31, 2010. Deere’s last dividend hike was at the June 28, 2010 payment, and the dividend had been $0.28 before then since March of 2008.
Samuel Allen, chairman and chief executive officer, noted “Today’s announcement emphasizes that we remain confident in the future direction of the company as Deere sharpens its strategic focus and concentrates its resources on growing our core equipment businesses around the world.”
This payout comes to $1.40 per year on an annualized basis and we wanted to see if the dividend is sustainable AND if future hikes can come. There is plenty of room for both if Thomson Reuters estimates hold up. The consensus earnings estimates ahead are $5.34 EPS for its Oct-2011 fiscal year and $6.35 EPS for its Oct-2011 fiscal year.
Deere shares are upon a strong day, with shares up 1.7% at $75.98 versus a 52-week range of $48.33 to $79.66.
JON C. OGG
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