11-26-2014, 09:27 AM
The only thing I don't really like about DE is the (relatively) low initial yield, and even that is not so bad. I don't mind its cyclical nature, and on the other important dividend growth metrics it looks pretty solid:
A decade-long streak of raising the dividend
A nice low P/E ratio of around 10
A low payout ratio of around 25 percent
Dividend growth that has averaged around 13 percent over the past 5 years, and a little over 11 percent in each of the past 2 years
Very solid EPS growth over the past 5 years.
Yes, I don't like to see 2014 earnings lower than 2013, but this is a cyclical company, and it comes with the territory. And the decrease is not all that large, really.
Importantly, the new 2015 guidance is lower too. Does this spell doom for the company? Nope. Does it spell a solid dip to a better entry point? We'll see. I opened a small position in Deere in 2013 at under $85 per share. And prices have dipped into the low $80s several times in the past 2 years. So I might wait for those prices again, but would not hesitate to add.
Other opinions?
A decade-long streak of raising the dividend
A nice low P/E ratio of around 10
A low payout ratio of around 25 percent
Dividend growth that has averaged around 13 percent over the past 5 years, and a little over 11 percent in each of the past 2 years
Very solid EPS growth over the past 5 years.
Yes, I don't like to see 2014 earnings lower than 2013, but this is a cyclical company, and it comes with the territory. And the decrease is not all that large, really.
Importantly, the new 2015 guidance is lower too. Does this spell doom for the company? Nope. Does it spell a solid dip to a better entry point? We'll see. I opened a small position in Deere in 2013 at under $85 per share. And prices have dipped into the low $80s several times in the past 2 years. So I might wait for those prices again, but would not hesitate to add.
Other opinions?