Portfolio Update: Deere

I bought some John Deere today. I put a limit order in a week ago, and it was triggered this morning.

I looked at the financial statements, and things looked pretty good. It has been increasing its dividend for 10 years. The most recent two increases were 12% and 10%. The P/E ratio is lower than most of the stocks on the market. It is about 10. I think a lot of stocks will pull back at some point. I have been thinking that for about a year, and it has still not happened. I don’t think Deere would go down as much when that happens.

I also wanted to increase the number and amount of stocks that I own. I have sold a few in the past few years, and that has limited the growth of my dividend income stream. So I need to buy more stuff.

Plus it is a “play” on food. I think that there will be more resource constraints going forward, food being one of them. Better agricultural practices will be one of the ways those constraints will be dealt with, and I think that the world will need more Deere tractors going forward.

Image from John Deere web site, assumed allowed under Fair Use