Many people were disappointed in February when DE decided to keep the dividend the same for the 5th straight quarter. This is certainly a red flag but for a cyclical company that has a history of going more than 4 quarters sometimes, I wasn’t too concerned. The announcement this week though eliminated many of these fears.
John Deere announced Wednesday a quarterly dividend increase of $0.09 from $0.51 to $0.60 per share that’s payable August 1, 2014 to holders of record as of June 30, 2014. This latest increase was 18%!
This will be the 11th straight year of dividend increases for DE!
DE has a current P/E of 9.9 and a yield of 2.6%. I’ve already decided to keep the company as a half position with the other half in CAT.
Since I own 34.42 shares, this will increase my yearly dividends by $12.39. This is the 21st stock in my portfolio to increase their dividend this year.
You can find all of my dividend increase announcements here.