This Unstoppable Dividend Stock Is Up 21% in 3 Months. Here's Why It's Still a Great Buy in December.

Core Viewpoint - Deere's stock has reached an all-time high despite a significant decline in net income, indicating that market expectations may have been lower than actual performance [1][7]. Financial Performance - Deere's net income fell by over 30% in fiscal 2024, reporting $7.1 billion, down from an initial forecast of$7.75 billion to $8.25 billion [5]. - The company projects fiscal 2025 net income to be between$5 billion and $5.5 billion, representing a 26$126.5 billion leading to a price-to-earnings ratio of about 24 [6]. Market Expectations - Expectations for Deere have been relatively low, allowing the stock to rally as the company exceeded these expectations [3][7]. - Analysts noted that Deere's comparable results may improve in the second half of fiscal 2024, potentially leading to slight growth [8]. Strategic Positioning - Deere's CEO highlighted that over 75% of its products sold in the U.S. are assembled domestically, positioning the company favorably against potential tariff increases on imported machinery [9]. - The company has a strong track record of reinvesting in technological innovations and returning capital to shareholders through dividends and stock buybacks [11][13]. Long-term Outlook - There is potential for a return to growth in fiscal 2026, which could make Deere's stock appear undervalued [10]. - Despite uncertainties in demand across its business units, Deere's innovative culture and industry leadership make it a compelling long-term investment [12][14].