Deere’s stock surges after dividend raised by 17%

Shares of Deere & Co.
DE,
+2.97%
climbed 2.8% in midday trading Wednesday, after the construction, agriculture and turf care equipment maker raised its dividend by 16.7%. The company said it will pay a dividend of $1.05 a share, up from a previous dividend of 90 cents a share, on Nov. 8 to shareholders of record on Sept. 30. Based on current stock prices, the new annual dividend would imply a dividend yield of 1.11%, which compares with the yield for the iShares Industrial Select Sector ETF
XLI,
+0.83%
of 1.22% and the implied yield for the S&P 500
SPX,
+0.29%
of 1.33%, according to FactSet. “The latest increase in our quarterly dividend is a reflection of Deere’s recent strong performance and the success of our new strategy and operating model,” said Chief Executive John May. “It also shows our confidence in the company’s future direction.” Deere’s stock has run up 40.6% year to date, while the industrial ETF has advanced 18.5% and the S&P 500 has climbed 19.8%.