Deere & Co increases quarterly dividend and repurchases its own stock

World leading manufacturer of agricultural machinery Deere & Company (NYSE: DE) plans to increase its quarterly dividend by 12% and repurchase $5 billion of its own stock.

Photo: Deere & Co increases quarterly dividend and repurchases its own stock

Deere & Co increases quarterly dividend and repurchases its own stock

Agricultural demand also spurs the company to spend $35 million for production increase of combine harvesters by about 30%.

The positive picture of Deere’s business is reflected on its shares boosting increase by as much as 3.6%, or $2.87, to $82.73.

Deere highlights that the dividend payment will constitute 28 cents a share, up 3 cents a share from the previous level, payable Aug. 1 for shareholders of record on June 30.

The company expects overall sales to increase by about 20% for the fiscal third quarter, and agricultural equipment sales to soar by 35% for full-year 2008.

Deere & Company plans to end its combine manufacturing expansion by 2009.

Photo: www.wikipedia.org