Deere Stock Shares $25 Bil Success With Investors
In the last five years, Deere (DE) stock has returned $25 Bil back to its shareholders through cold, hard cash via dividends and buybacks. Let’s look at some numbers and compare how this payout power stacks up against the market’s biggest capital-return machines.
As it turns out, DE stock has returned the 72nd highest amount to shareholders in history.
| DE | S&P Median | |
|---|---|---|
| Dividends | $7.5 Bil | $3.0 Bil |
| Share Repurchase | $18 Bil | $3.0 Bil |
| Total Returned | $25 Bil | $6.0 Bil |
| Total Returned as % of Current Market Cap | 16.1% | 16.8% |
Why should you care? Because dividends and share repurchases represent direct, tangible returns of capital to shareholders. They also signal management’s confidence in the company’s financial health and ability to generate sustainable cash flows. And there are more stocks like that. Here is a list of the top 10 companies ranked by total capital returned to shareholders via dividends and stock repurchases.
Top 10 Stocks By Total Shareholder Return
| Total Money Returned | As % Of Current Market Cap | via Dividends | via Share Repurchases | |
|---|---|---|---|---|
| AAPL | $508 Bil | 11.6% | $76 Bil | $432 Bil |
| GOOGL | $288 Bil | 6.4% | $20 Bil | $268 Bil |
| MSFT | $223 Bil | 7.6% | $108 Bil | $115 Bil |
| JPM | $181 Bil | 20.1% | $72 Bil | $108 Bil |
| XOM | $157 Bil | 26.4% | $79 Bil | $78 Bil |
| META | $156 Bil | 10.3% | $12 Bil | $145 Bil |
| BAC | $129 Bil | 31.2% | $45 Bil | $84 Bil |
| NVDA | $116 Bil | 2.3% | $3.1 Bil | $113 Bil |
| CVX | $116 Bil | 32.4% | $58 Bil | $57 Bil |
| WFC | $108 Bil | 41.2% | $23 Bil | $85 Bil |
For full ranking, visit Buybacks & Dividends Ranking
What do you notice here? The total capital returned to shareholders as a % of the current market cap appears inversely proportional to growth prospects for reinvestments. Stocks like Meta (META) and Microsoft (MSFT) are growing much faster, in a more predictable way, compared to the others, but they have returned a much lower fraction of their market cap to shareholders.
That’s the flip side to high capital returns. Sure, they are attractive, but you have to ask yourself the question: Am I sacrificing growth and sound fundamentals?
Deere Fundamentals
- Revenue Growth: 4.2% LTM and -6.8% last 3-year average.
- Cash Generation: Nearly 8.1% free cash flow margin and 17.4% operating margin LTM.
- Recent Revenue Shocks: The minimum annual revenue growth in the last 3 years for DE was -22.7%.
- Valuation: Deere stock trades at a P/E multiple of 33.1
| DE | S&P Median | |
|---|---|---|
| Sector | Industrials | – |
| Industry | Agricultural & Farm Machinery | – |
| PE Ratio | 33.1 | 24.0 |
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| LTM* Revenue Growth | 4.2% | 7.4% |
| 3Y Average Annual Revenue Growth | -6.8% | 5.8% |
| Min Annual Revenue Growth Last 3Y | -22.7% | 0.6% |
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| LTM* Operating Margin | 17.4% | 18.4% |
| 3Y Average Operating Margin | 21.0% | 18.3% |
| LTM* Free Cash Flow Margin | 8.1% | 14.5% |
*LTM: Last Twelve Months
The table gives a good overview of what you get from DE stock vs median S&P 500, but comparing against its own peers is just as important.
DE Historical Risk
There is no free lunch. When it comes to buybacks and dividends, shareholders get rewarded for “staying invested”. And that is not easy. Even the strongest conviction gets tested during volatile market phases, and is best illustrated by understanding how low DE stock has fallen during the past market crises.
Staying Invested Matters If You Want Returns
Staying invested in markets is the only way to get returns. The mechanism does not matter. Whether it is fundamental price appreciation, share buybacks or dividends, the market does not reward you for watching from the sidelines. So how do you invest, and stay invested? Simple. Through “Portfolio” approach.
The Trefis High Quality Portfolio (HQ) Portfolio is designed to keep you in the game. By spreading your exposure across 30 quality stocks, it neutralizes the “all-or-nothing” risk of a single stock. It dampens the sharp, stomach-churning drops while maintaining upside exposure.