World leading manufacturer of agricultural machinery Deere & Company (NYSE: DE) plans to increase its quarterly dividend by 12% and repurchase $5 billion of its own stock.
Agricultural demand also spurs the company to spend $35 million for production increase of combine harvesters by about 30%.
The positive picture of Deere’s business is reflected on its shares boosting increase by as much as 3.6%, or $2.87, to $82.73.
Deere highlights that the dividend payment will constitute 28 cents a share, up 3 cents a share from the previous level, payable Aug. 1 for shareholders of record on June 30.
The company expects overall sales to increase by about 20% for the fiscal third quarter, and agricultural equipment sales to soar by 35% for full-year 2008.
Deere & Company plans to end its combine manufacturing expansion by 2009.