Deere Boosts Buyback, Dividend

The company says it wants to create superior long-term value.
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Deere

(DE) - Get Report

boosted its quarterly dividend and added 26 million shares to its buyback plan.

The Moline, Ill., tractor maker said it would pay a 39-cent dividend, up from the previous 31 cents, on Feb. 1 to holders of record Dec. 31.

"These actions support our goals for creating superior long-term value for investors," said CEO Robert W. Lane. "They reflect our confidence in Deere's future direction and its ability to produce strong levels of cash flow over time. In addition, the company remains committed to funding the research and capital programs necessary to meet our future growth objectives."

The repurchase authorization positions Deere for an initial target of 215 million shares outstanding. Since early 2004, the company has repurchased $1.1 billion of stock and now has raised the dividend rate on three occasions by a combined 77%.

On Wednesday, shares of Deere slipped 8 cents to $69.17.