Aug. 29 (Bloomberg) -- Deere & Co., the world's largest maker of farm equipment, said it plans a 2-for-1 stock split and raised its quarterly dividend by 14 percent after cash flow increased 46 percent in the past year.

The split would give stockholders an additional share for each one outstanding and requires their approval at a special meeting set for Nov. 14, Moline, Illinois-based Deere said today in a statement. The company raised the dividend to 50 cents a pre-split share, from 44 cents.

Chief Executive Officer Robert W. Lane has increased free cash flow 46 percent in the past year to $1.14 billion, according to Bloomberg data. Deere's stock has nearly tripled in the past five years. Deere last split the stock in 1995, then by a 3-for-1 ratio.

The increased dividend is payable Nov. 1 to holders of record on Sept. 28. The tractor maker has increased the quarterly payment rate five times since 2004, more than doubling it.

Deere rose $5.03, or 4 percent, to $131.45 at 4:03 p.m. in New York Stock Exchange composite trading. The shares have climbed 76 percent in the past year.

Revenue increased 59 percent in the past five years, to $21.9 billion last year from $13.8 billion in 2002. Net income surged more than fivefold to $1.69 billion in 2006, from $319.2 million in 2002.

``Today's actions reflect Deere's financial strength and our belief that the company's future prospects remain quite promising,'' said Lane in the statement.

Third-quarter net income climbed 23 percent to $537.2 million, or $2.37 a share, from $436 million, or $1.85, a year earlier, beating analysts' estimate. Sales of machinery outside the U.S. rose 30 percent, helping counter a 20 percent drop in construction and forestry equipment.

To contact the reporter on this story: Courtney Dentch in New York at cdentch1@bloomberg.net.

Last Updated: August 29, 2007 16:14 EDT