8-KOther Events

DEERE & CO 8-K Report, Corporate Update (Aug 29, 2007)

Filed August 29, 2007For Securities:DE

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.

Frequently Asked Questions

The quarterly dividend rate has been increased by 14 percent to $0.50 per pre-split share. This new rate is payable on November 1, 2007, to shareholders of record on September 28, 2007.

Deere & Company has proposed a 2-for-1 stock split, which will be executed as a stock dividend of one additional share for each share outstanding. This proposal requires shareholder approval at a special meeting scheduled for November 14, 2007.

The company stated that these actions reflect its financial strength and confidence in its future prospects. Management highlighted that their focus on economic profit has led to substantial cash flow increases, which are being used to fund growth investments, dividend increases, and share repurchases, all aimed at delivering superior long-term value to investors.

Since early 2004, Deere has increased its dividend rate on five separate occasions, resulting in a total increase of 127 percent. This latest increase continues that trend of returning capital to shareholders.