Deere dividend: payment, cash coverage and yield
Deere's current dividend rate is $6.48 per share, and Deere's combined payout was 76.4% of free cash flow in 2025. Deere's regular dividend is easier to understand than consolidated cash flow, but its coverage depends on cash generation through a full cycle.
How much does Deere pay per share?
The base dividend rises from $6.80 in October 2027 to $7.14 in October 2028. It reaches $7.50 in October 2029. The bear holds the current $6.48 rate flat. The bull reaches $7.13, then $7.84 and $8.63. Deere raised dividends throughout the five reported years, but weak agriculture and tariffs make the base's 5% annual growth more defensible than a return to its earlier pace.
| Nov 2025 | Oct 2024 | Oct 2023 | Oct 2022 | Oct 2021 | |
|---|---|---|---|---|---|
| EPS, diluted | 18.50 | 25.62 | 34.63 | 23.28 | 18.99 |
| Real free cash flow per share | 13.22 | 18.26 | 35.06 | 16.40 | 15.84 |
| Free cash flow per share | 13.77 | 19.01 | 35.51 | 16.68 | 16.10 |
| − Dividends paid, per share | 6.33 | 5.79 | 4.86 | 4.29 | 3.31 |
| − Share buybacks, per share | 4.19 | 14.46 | 24.58 | 11.74 | 8.08 |
Is Deere's dividend covered by its cash?
Across those five years, Deere generated $29.599 billion of free cash flow excluding Financial Services and paid $25.601 billion through dividends and buybacks. Buybacks dominated. They reduce the number of shares, so future profits are divided among fewer owners. The pattern shows that Deere invested in the industrial business before distributing substantial surplus cash.
The strain appeared in 2024, when shareholder payments exceeded that year’s free cash flow. Existing cash or borrowing can cover such a gap temporarily, but not indefinitely. In 2025, Deere reduced repurchases to $1.138 billion while dividends reached $1.720 billion. The combined payout fell to 76.4% of free cash flow. Deere therefore preserved its dividend while using buybacks as the adjustable part of shareholder returns.
| Nov 2025 | Oct 2024 | Oct 2023 | Oct 2022 | Oct 2021 | |
|---|---|---|---|---|---|
| Free cash flow | 3,742 | 5,269 | 10,425 | 5,108 | 5,055 |
| − Dividends paid | 1,720 | 1,605 | 1,427 | 1,313 | 1,040 |
| − Share buybacks | 1,138 | 4,007 | 7,216 | 3,597 | 2,538 |
| − Acquisitions | 101 | 0 | 82 | 498 | 244 |
| − Investments bought | 135 | 209 | 1,043 | 76 | 8 |
| Paid to shareholders | 2,858 | 5,612 | 8,643 | 4,910 | 3,578 |
What could change Deere's dividend?
Net debt falls in the base case from $405M to negative $2,882M and then negative $6,902M. The bear path gives $2,004M, then $605M and negative $1,594M. The bull gives $472M, then negative $2,683M and negative $6,438M. Deere's current equipment-operations net debt is $2,563M. Management expects operating cash flow between $5,000M and $5,500M. Capital spending is guided at $1,300M, but dividends, buybacks and working capital determine how much cash remains.
| October 2027 | October 2028 | October 2029 | |
|---|---|---|---|
| Normal operating profit | 7,235 (4,598 / 7,920) | 8,418 (5,100 / 9,800) | 9,315 (5,780 / 11,060) |
| Shares (millions) | 267 (268 / 266) | 265 (267 / 262) | 262 (266 / 259) |
| Dividends per share | 6.80 (6.48 / 7.13) | 7.14 (6.48 / 7.84) | 7.50 (6.48 / 8.63) |
| Enterprise value to normal operating profit | 22.00 (16.00 / 27.00) | 23.00 (15.00 / 29.00) | 24.00 (14.00 / 31.00) |
| Net debt | 405 (2,004 / 472) | -2,882 (605 / -2,683) | -6,902 (-1,594 / -6,438) |
What is Deere's dividend yield at today's price?
Cash flow needs the same separation. Deere’s fiscal 2026 outlook called for equipment operating cash flow of $5.0–$5.5 billion and capital spending of about $1.3 billion, implying roughly $3.7–$4.2 billion before other adjustments. The regular dividend is easier to understand than consolidated cash flow, but its safety still depends on cash generation through a full cycle. These are the starting facts for judging Deere’s history.