Deere’s stock rises after 17% dividend hike

Shares of Deere & Co. THE,
+2.91%
It climbed 2.8% in afternoon trading Wednesday after the construction, agricultural and lawn care equipment maker increased its dividend by 16.7%. The company said it will pay a dividend of $1.05 per share, up from a previous dividend of 90 cents per share, to shareholders on Nov. 8 from a record Sept. 30. Based on current stock prices, the new annual dividend would yield a dividend yield of 1.11%, compared to the return of the iShares Industrial Select Sector ETF XLI,
+0.83%
of 1.22% and the implied return for the S&P 500 SPX,
+0.31%
of 1.33%, according to FactSet. “The latest increase in our quarterly dividend reflects Deere’s recent strong performance and the success of our new strategy and business model,” said Chief Executive John May. “It also shows our confidence in the future direction of the company.” Deere’s stock is up 40.6% so far, while the industrial ETF is up 18.5% and the S&P 500 is up 19.8%.

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