Deere up on Q4 earnings performance

The press release clearly relates an uninspiring story of gloom. Growth rates for both sales and net income were way down. Obviously, the recession has taken the proverbial toll on business operations. The challenging times should continue as we slowly get through this new era of a reset economy.

Cash flow, as reported in the following document over at the corporate site (link opens to a .pdf file), is all right. Annual obligations for dividend payments and capital spending were satisfied. Those who buy the company for income don't need to worry about the financial shape of the business.

Going forward, the comparisons will hopefully get easier, so shareholders who keep the stock in a core portfolio should retain a sense of patience about the situation. Even though competitor Caterpillar (CAT) might have a higher potential in terms of growth, I don't think investors have too much to worry about.

My only complaint about buying now would be that the stock has already seen a move this year. How great it would have been to have purchased at the 52-week low! Can't do anything about it, of course. I would rather get Deere at a higher yield if possible, but I acknowledge that it might not necessarily see a big pullback by the end of the year. The tape simply seems too strong. As always, whenever you're looking at solid dividend-paying issues, be certain to take into account the need to dollar-cost-average into a position when performing the requisite due diligence.

Disclosure: I don't own any company mentioned; positions can change without notice.