12-08-2016, 09:24 AM
The lack of raise isn't a big surprise as the payout ratio is well above the target set by management.
The recent price increase is a sector wide phenomenon following the election of Trump. There are expectations of up to $1T in new infrastructure spending by Trump, which would be a huge boost to the industrial sector, and to some extent, Deere. Farm prices are still in the dumps, and I expect that to continue, but if the other part of their business can improve, it may be enough to bump earnings to make the recent price rise justified.
The recent price increase is a sector wide phenomenon following the election of Trump. There are expectations of up to $1T in new infrastructure spending by Trump, which would be a huge boost to the industrial sector, and to some extent, Deere. Farm prices are still in the dumps, and I expect that to continue, but if the other part of their business can improve, it may be enough to bump earnings to make the recent price rise justified.