President Trump’s decision to hike steel and aluminum tariffs to 50% is impacting U.S. manufacturing, with farm machinery manufacturers facing increased costs. Deere & Company posted Q3 earnings of $3.93 per share, beating expectations, but still saw shares drop due to a projected $1.2 billion pre-tax tariff hit for fiscal 2026. Despite this, Deere remains a quality name with a dividend payout ratio of 32.95%. Analysts are optimistic about Deere’s future, with a consensus “Moderate Buy” rating and an average price target of $523.9.

Deere is facing short-term tariff pressures, but is focusing on long-term growth strategies. The company has joined Growth Energy to advance renewable fuels, with ARK Innovation ETF backing this move with investments. Deere is also collaborating with startups to enhance its technology offerings. The farm economy is becoming more supportive, with the USDA projecting a 30% increase in U.S. net farm income in 2025, following two years of declines. Analysts expect a modest EPS growth rate of 4.54% YoY for Deere in fiscal 2026, despite tariff challenges.

Read more at Barchart: Deere Got Hit by Tariffs… Again. Should You Buy the Blue-Chip Dividend Stock on the Dip?