Deere (NYSE:DE) raised its dividend by 6 cents a share and announced plans on Tuesday to build an engine factory in China for roughly $60 million.
The dividend of 41 cents a share is payable August 1 to shareholders of record on June 30. The 17% increase marks the company’s ninth dividend hike in seven years.
Samuel Allen, chief executive of the Moline, Ill.-based company, said the move reinforces the company’s confidence in its products and ability to deliver value to customers and investors over the long-term.
The maker of tractors, dozers and mowers said the new factory in China’s Tianjin Economic and Development Area, where Deere already has other facilities, will manufacture engines for John Deere equipment.
"This engine factory will allow John Deere to deliver increased technology for China customers while leveraging enterprise investments and engineering resources in China,” Allen said.
Adding to others in Argentina, France, India, Mexico and the U.S., the engine factory will be Deere’s sixth worldwide. The company intends to start production in late 2013.