Deere declares the quarterly dividend
On August 29, Deere announced the regular quarterly dividend on its outstanding shares. To be eligible for the dividend, investors should hold Deere shares as of September 28 in the company’s record. The dividend is expected to be paid on November 1. At the end of the third fiscal quarter, Deere had 328 million outstanding shares. Assuming no buyback happens, Deere will be paying ~$226.32 million in dividends to its shareholders.
Deere will be paying a dividend of $0.69 per share—an increase of 15% over the previous year. Deere increased its dividend rate in the previous quarter from $0.60 to $0.69. Deere has increased the dividend rate after a four-year gap.
Deere stock update
Deere stock was marginally lower for the week ending August 31. The stock declined ~0.7% and closed at $143.78. Deere couldn’t sustain the 100-day moving average trend reversal from the previous week. The stock fell marginally below the 100-day moving average price of $144.57. However, the overall trend still indicates weakness in the stock. Deere’s 100-day moving average has fallen from ~$157.86 to $144.57 in the past three months.
On a year-to-date basis, Deere stock has fallen 8.2%. However, analysts are bullish on the stock. Analysts have recommended a target price of $178.10, which implies an upside of 23.9% based on its closing price on August 31. Caterpillar (CAT), Agco (AGCO), and CNH Industrial (CNHI) have fallen 11.9%, 16.5%, and 10.5%, respectively. Deere’s 14-day RSI (relative strength index) score of 53 indicates that the stock isn’t overbought or oversold.
Investors can hold Deere indirectly through the iShares MSCI Global Agriculture Producers ETF (VEGI), which had 13.20% of its portfolio invested in Deere as of August 31.