Summary
Deere & Company (DE) announced on August 29, 2007, a significant increase in its shareholder returns, demonstrating strong financial health and confidence in future prospects. The Board of Directors approved a 14% hike in the quarterly dividend, raising it from $0.44 to $0.50 per pre-split share, payable on November 1, 2007. This action underscores the company's commitment to delivering value to its investors, building upon a consistent history of dividend growth since early 2004. In addition to the dividend increase, Deere proposed a 2-for-1 stock split, subject to shareholder approval at a special meeting scheduled for November 14, 2007. This move aims to make the company's stock more accessible to a broader range of investors and reflects management's positive outlook on future earnings and cash flow generation. The company highlighted its focus on economic profit, which has driven substantial cash flow increases, enabling strategic investments, dividend hikes, and significant share repurchases, including over $3.5 billion in stock bought back since early 2004.
Key Highlights
- 1Deere & Company announced a 14% increase in its quarterly dividend rate.
- 2The quarterly dividend will rise from $0.44 to $0.50 per pre-split share.
- 3A 2-for-1 stock split has been proposed, requiring shareholder approval.
- 4The stock split is planned as a stock dividend of one additional share for each share outstanding.
- 5Shareholder approval for the stock split is sought at a special meeting on November 14, 2007.
- 6The increased dividend is payable on November 1, 2007, to shareholders of record on September 28, 2007.
- 7The company cited its financial strength, promising future prospects, and focus on economic profit as drivers for these actions.