Is Deere & Company a safe bet for dividend investors?

Nothing is certain, but Deere & Company (NYSE: DE) looks promising despite myriad economic and other challenges. The company predicted it would generate between $6.5 billion and $7 billion in net income in fiscal year 2022. But is that reason enough to invest in the name that blazed the trail? modern agricultural equipment?

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Let's take a look at the history of Deere & Company and the pros and cons of adding the stock to your stack dividend investments. Doing your own research can help you decide if you want to invest in Deere & Co. and whether it will offer you the best dividend yields from stocks to achieve your goals.

History of Deere & Company

John Deere, who moved from Vermont to the Midwest, settled as a blacksmith in Grand Detour, Illinois in the 1830s. He noticed that settlers had trouble taming the prairie soil . He whipped a broken Scottish steel saw blade to a piece of wood to create a plow and just like that, started a business that still bears his name. By 1849, he had produced 2,000 plows from these steel saw blades, which could till the soil of the Midwestern prairies without clogging.

In 1912, the company began to expand into tractors. In 1947, John Deere introduced its first self-propelled combine, the Model 55. The 1960s and 1970s ushered in technological changes that required farmers to cultivate more land to be profitable. Deere has set its sights on agricultural equipment for large-scale farming: large tractors, balers as well as seeding and harvesting machines.

The company has since expanded beyond agricultural equipment, creating industrial, construction and forestry equipment throughout the United States, Canada, Europe, India, Argentina, Brazil and South Africa. South. It operates through four segments:

Production and Precision Agriculture: This division produces mid-size tractors, combines, cotton pickers, sugar cane harvesters, tillage equipment, etc. Small Agriculture and Turf: This division produces utility tractors, loaders and attachments, turf equipment, riding lawn mowers, commercial mowing equipment, utility vehicles and more. Construction and Forestry: This division produces backhoe loaders, bulldozers and crawler loaders, excavators, graders, skid steer loaders, harvesters, road construction equipment and more. Financial Services: The Financial Services division produces, sells and leases agricultural, turf, construction and forestry equipment and also provides wholesale financing to dealers.

The Moline, Illinois-based company has begun to expand into machine learning, applying it to agriculture as well. For example, Deere & Company acquired Blue River Technology in September 2017, which reduces herbicides by only spraying where there are weeds.

For the second quarter ended May 1, 2022, Deere & Company reported net income of $2.098 billion, compared to net income of $1.790 billion on May 2, 2021. Net sales and revenue increased by 11% to $13.370 billion in the second quarter of 2022 and for six months increased by 8% to $22.939 billion. Net sales were $12.034 billion for the quarter and $20.565 billion for the six months, compared to $10.998 billion and $19.049 billion last year.

While historical results are never a guarantee of future results, it's also important to consider the track record of the company you're considering investing in. It can give you a lot of information about a particular company and help you decide if you should invest or not.

Advantages and disadvantages of Deere & Company

Why would you want to invest in Deere & Company and why would you want to keep an eye on yourself instead? Let's take a look at the pros and cons of investing in Deere & Company stock.

Advantages: Brand synonymous with quality: A household name, Deere & Company has conquered several markets as an international rock star. It offers some of the best equipment options in the industry and has a diverse range of specialist equipment including lawn tractors, balers, combines and loaders. Research and Development: Deere spends a significant amount of money on research and development, resulting in premium products and products with high resale value. It is safe to assume that...