Summary
Deere & Company announced significant capital return initiatives to shareholders via a press release filed on May 28, 2008. The Board of Directors approved a 12% increase in the quarterly dividend, raising it to 28 cents per share, payable on August 1, 2008. This marks the sixth dividend increase since early 2004, totaling a 155% rise in the quarterly dividend over that period. In addition to the dividend hike, Deere expanded its share buyback program by an additional $5 billion. This new authorization will supplement the existing program, under which approximately 23 million shares were available for repurchase as of April 30, 2008. These actions underscore the company's confidence in its future performance and its ability to generate strong cash flow, enabling both reinvestment in growth and direct returns to shareholders.
Key Highlights
- 1Deere & Company Board of Directors increased the quarterly dividend rate by 12%.
- 2The new quarterly dividend rate is 28 cents per share, payable August 1, 2008.
- 3The dividend increase reflects a 3-cent per share rise from the previous level.
- 4Deere authorized an expansion of its share buyback program by an additional $5 billion.
- 5The share buyback program expansion supplements an existing authorization.
- 6Since early 2004, Deere has increased its quarterly dividend six times, by a total of 155%.
- 7The company has repurchased approximately $5 billion of common stock since early 2004.