This ‘Made For 2025' Dividend Grower Is Ready To Rally

Core Viewpoint - Deere & Co is positioned to benefit from rising grain prices, which historically correlate with increased profits and stock prices, making it a strong candidate for dividend growth investments [2][4]. Group 1: Dividend Strategy - The "Made for 2025" Dividend Plan focuses on identifying dividend stocks with potential for significant payout increases, particularly in the context of Deere's operations [1]. - Deere has returned a substantial 60% of its cash to shareholders through dividends and buybacks over the past two decades, contributing to its strong performance [5]. - The company has increased its dividend by 145% over the last 10 years, particularly during periods of rising wheat prices, enhancing shareholder value [5][7]. Group 2: Market Conditions - Current low wheat prices present a buying opportunity for investors, as historical trends indicate that troughs in wheat prices often precede upcycles in Deere's profits [3][6]. - Despite trading sideways since 2022, Deere's management remains optimistic about future agricultural price increases, recently raising the dividend by 10.2% [7]. Group 3: Business Operations - Deere is a key player in the agricultural, construction, and forestry equipment sectors, with a strong reputation for performance during favorable grain price conditions [2][4]. - The company has strategically deployed its cash to acquire new businesses and invest in its core operations, ensuring long-term growth and stability [5].