DE - Now Is Not The Time For Dividend Investors To Add Deere
- Trading at its lowest yield in 10 years, this is not the time to add Deere for dividend growth investors.
- Deere is valued on strong expectations for revenue and earnings growth above GDP levels for the period until 2023, riding the tailwinds of fiscal stimuli and expected commodity strengthening.
- Wall Street consensus price targets show a 21% stock price appreciation potential, but I stand in opposition suggesting the company is somewhere between fair to slight overvaluation given its cyclicality and maturity.
- Revenue CAGR of 0.7% from 2011-2020 with expected CAGR of 4.1% for 2011-2023 and EPS CAGR of 3.0% from 2011-2020 with expected CAGR of 9.6% for 2011-2023.
- These expectations and its recent run-up with a 90% appreciation YoY show there is no room for failure along the way to the ambitious consensus.
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Now Is Not The Time For Dividend Investors To Add Deere