Last week, I made my second purchase of Deere shares—adding two shares at $388 each to my portfolio. It was a long time coming, as I first invested in Deere back in 2013 when I bought 18 shares for about $85 per share. Since then, the total return on those shares has been incredible, driven by strong earnings growth, massive share repurchases (3% annually on average), and a compounded annual growth rate of 10% in its dividend.
With my recent purchase, I’ve rounded out my position to an even lot, which has been a goal of mine for some time. The current price of Deere seems reasonable, with a price-to-earnings ratio of 13x—about halfway in its 52-week range. Interestingly, the stock price hasn’t moved much in the past three years, but I believe this is largely reflective of Deere’s cyclical nature.
Despite being in a downtrend right now, Deere’s core business remains strong, and I expect future growth as the agricultural and industrial sectors continue to evolve. The long-term prospects seem promising, especially considering Deere’s leadership in its industry and its commitment to returning value to shareholders.
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