TTC - Deere & Company: Strong Cash Flows And Dividend Growth Make It A Long-Term Buy

2024-03-17 07:30:00 ET

Summary

• Deere & Company, a well-known company in the construction and agriculture industries, has faced headwinds recently, causing its stock to trade at an attractive level.
• Despite declining net sales and revenues, the company's cash flows remain strong, ensuring the safety of its dividend.
• With a conservative payout ratio and robust cash flows, Deere & Company has the potential for further dividend increases and is a good investment opportunity.
• We have a price target of near $478, offering investors double-digit upside.
• Higher interest rates and sticky inflation continue to be headwinds for the company and will likely cause their share price to see some volatility in the near term.

Introduction

Over the past year I've been rebalancing my dividend portfolio looking for additional stocks to potentially add. Besides BDCs and REITs which I own, I also look for reputable, well-known companies that consumers often use but don't necessarily think about when it comes to them paying dividends....

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