Farming and construction equipment maker Deere & Company ( DE ) on Tuesday announced a 17% raise to its quarterly dividend payout and unveiled plans to build a new factory in China.
The factory will be used to manufacture engines for John Deere equipment that is assembled in China. Deere said the $60 million investment will be made in the Tianjin Economic and Development Area, where the company already boasts other facilities.
The company also said it would raise its quarterly dividend by 17% to 41 cents, up from a prior payout of 35 cents per share. The new dividend will be payable on Aug. 1 to shareholders of record as of June 30.
The latest dividend raise marks the ninth time DE has boosted its payout since 2004.
Deere shares rose 54 cents, or +0.7%, in premarket trading Tuesday.
The Bottom Line
Shares of Deere & Co. ( DE ) will now have a 1.97% dividend yield based on the higher dividend payout and last night's closing stock price of $83.06. The stock has technical support in the $75-$80 price area. If the shares can firm up, we see overhead resistance around the $85-$88 price levels.
Deere & Company ( DE ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Created by Dividend.com