Deere (NYSE:DE) is the world’s largest farm machine producer (notice the pattern?), and it’s also big in construction and earth-moving equipment. Deere missed earnings estimates in the third quarter by nearly 17%, and won’t announce fourth-quarter results until November. But like CAT, it telegraphed lowered expectations for fiscal 2012, with net income expected to come in around $200 million below analyst estimates.
Deere generates nearly 60% of its revenues from the U.S. and Canada, but it’s trying to get into China, Brazil and India, markets where tractor usage isn’t nearly as widespread as in North America. The problem is that, at least in the case of China, the economy is slowing. But the bottom line is people need to eat, and tractor technology can make large-scale crop and food production more efficient.
So, while you wait for these markets to ripen, Deere will provide you with a dividend of 46 cents per share per quarter, and with a P/E of 11x trailing earnings and a 2.14% dividend yield, it’s a good time to take a nice long look.